Amy Howe’s FanDuel Severance Package Much Larger Than First Reported

Former FanDuel CEO Amy Howe landed a significantly larger exit package than originally disclosed when she departed the sports betting operator in May.

According to Flutter Entertainment’s (NYSE: FLUT) latest SEC filing, former FanDuel CEO Amy Howe’s separation package could reach $21.2 million—five times the original $4.37 million estimate.

Much of the difference between the new and initial figures stems from Flutter revealing that Howe is entitled to $12.5 million stemming from a value creation plan (VCP) granted on Oct. 4, 2021 that vests on Oct. 4, 2026.

In pro-rata terms, Flutter would pay Howe $11.47 million in cash because she left FanDuel prior to the full vesting date.

Add the VCP into Howe’s originally disclosed severance of $4.37 million and the package swells to $15.84 million and that doesn’t include $1 million of legal fees Flutter paid on her behalf.

Shares of the FanDuel owner traded lower following Howe’s departure, meaning Howe’s separation agreement was struck when the stock traded higher than where it resides today.

That timing implies the value of restricted stock units (RSUs) granted to the former executive pushes the value of her overall departure package to the upside and potentially into the aforementioned $21.2 million.

Some Think Howe Was Made a Scapegoat

When Howe’s departure was announced in May, it sent shockwaves throughout the sports wagering and investment communities, stoking speculation that she was made a “fall woman” for the parent company’s share price erosion.

Whether or not Howe was made a scapegoat may never be known because her exit agreement includes confidentiality and non-disparagement clauses.

Howe became interim CEO of FanDuel in July 2021, shedding the interim tag in October of that year.

That was about three years after the Supreme Court ruling on the Professional and Amateur Sports Protection Act (PASPA), which paved the way for states to make their own decisions on sports betting.

Howe solidified FanDuel’s perch as the largest sportsbook operator in the U.S., forming what amounts to a duopoly with rival DraftKings (NASDAQ: DKNG), while expanding the operator’s iGaming footprint.

However, executives and investors grew restless amid competitive threats from prediction markets, potentially explaining her ouster, though Flutter has not commented to that effect.

Jackson Could Be In for Huge Payday

With Howe’s exit package potentially approaching $21 million, investors may be wondering what departure terms await Group CEO Peter Jackson.

Concurrent with its Q2 earnings release, Flutter announced Jackson will step down as CEO and board member on Sept. 30, though he will stay on as an advisor through the end of 2026 to support the transition.

Jackson will be succeeded on Oct. 1 by Dan Taylor, who currently serves as CEO of Flutter’s international division and group president.