Inside Ex-FanDuel CEO Amy Howe’s Massive $4.37M Flutter Severance Package

• Howe receives a severance payment totaling two years of base salary
• The package includes the accelerated vesting of Restricted Stock Units (RSUs)
• Flutter will provide 24 months of continued health insurance coverage

Former FanDuel CEO Amy Howe is exiting the Flutter Entertainment (NYSE: FLUT) ecosystem with a massive $4.37 million ‘golden parachute’ and a lucrative equity package, according to new SEC filings.

In a Form 8-K filed with the Securities and Exchange Commission (SEC), Flutter revealed it will pay Howe $4.37 million, the equivalent of 24 months of her base salary “plus annual bonus opportunity” over a 52-week period.

Howe, whose departure was announced yesterday, will also receive restricted stock units (RSUs) as part of the severance package.

In respect of the awards granted as time-based restricted stock units (“RSUs”) under the Flutter 2024 Omnibus Incentive Plan, full vesting of tranche 1 of the 2025 RSUs and tranche 1 of the 2026 RSUs, and a time pro-rated vesting of the remainder of RSUs; (iii) full vesting of the RSUs granted under the Flutter 2016 Restricted Share Plan; (iv) a time pro-rated vesting of her performance stock units subject to achievement of the performance conditions,” according to the regulatory document.

Howe is also entitled to any unpaid and benefits and Flutter is covering her health insurance expenses for up to a year.

She’s being replaced by FanDuel president Christian Genetski, though it’s not yet clear if that’s on an interim or permanent basis.

“The Separation Agreement also includes customary provisions, including non-disparagement, cooperation in certain matters, return of employer’s property, confidentiality obligations, and non-solicitation of employees for one year,” according to the 8-K.

Howe’s Flutter Severance Typical

Howe’s separation package appears to be in-line with Corporate America standards, indicating Flutter isn’t being overly generous so as to raise alarms with ordinary investors. Nor is it being excessively frugal to the point that it could be vulnerable to challenges from the departed FanDuel leader.

Arguably, Flutter is being somewhat generous in granting Howe equity, but that may have been built into her employment contract.

“This is less common, but when offered, it’s usually based on either a prorated or target bonus amount. Companies focused on conserving cash often exclude bonuses from severance,” notes Sequoia.

London Listing Review

Separately, Flutter is reviewing its listing on the London Stock Exchange, something CEO Peter Jackson announced on the company’s first-quarter earnings conference call yesterday. The implication is that Flutter may be mulling pulling its London listing.

“Finally, I wanted to note our plans to review our London Stock Exchange listing as we consider streamlining the dual listing. We expect this review to conclude during Q2, and we’ll update on our findings at that time,” said Jackson.

It’s been just under two years since the gaming company moved its primary listing to New York from London.