Tabcorp’s Adam Rytenskild has been forced to resign as managing director and CEO with immediate effect after using “inappropriate and offensive” language in the workplace.
The company’s Board considered the language to be inconsistent with Rytenskild’s continued leadership of the organisation and following discussion with the Board, Rytenskild has tendered his resignation and will step down immediately.
Tabcorp said that it expects its leaders to uphold company values at all times and “will not hesitate to take action to uphold expected standards of conduct.”
To protect the privacy of those involved, Tabcorp does not intend to make any further comment in relation to the conduct.
“The Board regrets that Mr Rytenskild’s employment has ended in this way and acknowledges his commitment to Tabcorp’s growth over more than two decades, including the last two years as MD and CEO and his contribution to the transformation of the company,” said Tabcorp chairman Bruce Akhurst. “Today’s change does not impact the strategic direction of the company.
“We have the depth and capability across the executive and the senior leadership team to continue our transformation. We remain focused on executing our strategy at pace, transforming our competitiveness, growing market share, levelling the playing field for fees, taxes and regulation, and reshaping the business to deliver a more efficient and effective organisation. Tabcorp is on track to deliver this and create a growing and more valuable company for shareholders.”
Following Rytenskild’s departure, Akhurst has agreed to take on additional duties as executive chairman, subject to any applicable regulatory approvals, while the search for a new MD and CEO is conducted.
Commenting on his resignation, Rytenskild said: “I don’t recall making the alleged comment and it’s not language I would usually use, but I have regrettably agreed to resign. Tabcorp has been an enormous part of my life for many years and I believe in the journey the company is on.”
Rytenskild had been with the company for more than twenty years, including the last two years as MD and CEO.
Rytenskild will receive only the termination payments required by law and under his contract, and will forfeit all his unvested short term incentive and long term incentive awards.
The Board has appointed Maritana Partners to commence a global search for a new MD and CEO.
Shares in Tabcorp Holdings Ltd (ASX:TAH) closed 5.23 per cent lower at AUD$0.7250 per share in Sydney earlier Friday.