Ainsworth Game Technology (AGT) chairman Danny Gladstone and company secretary Mark Ludski have resigned from their positions, effective immediately, the Australian slot machine manufacturer told the Australian Securities Exchange on Friday, June 5th.
Both men told the board they had decided to step down in light of recent media reports regarding personal payments made to them more than eight years ago, adding that the move was in the best interests of the company so it could move past the ‘distracting complaints’ and focus on its strategic priorities.
The Australian Financial Review reported in February that founder Len Ainsworth had paid Gladstone a bonus of AU$10 million ($7.1 million) and Ludski AU$5 million ($3.6 million), shortly after Austrian gaming group Novomatic AG took a majority stake in the company in a deal finalized in early 2018.
Graeme Campbell, an independent non-executive director since 2007, has been appointed chairman, bringing more than 30 years of experience in corporate consultancy for the hotels and registered clubs sector. He also joins the company’s Regulatory and Compliance Committee, with non-executive director Heather Scheibenstock replacing Gladstone as its chair.
AGT named chief financial officer Lynn Mah and Andrew Kabega of BoardRoom Pty Ltd as interim joint company secretaries. Gladstone had served since 2007, first as chief executive and executive director before becoming chairman in 2019, while Ludski joined in 2000 and spent about 22 years as CFO.
The departures come amid a broader dispute involving Kjerulf Ainsworth, a son of the founder and the company’s second-largest shareholder, who has criticized AGT’s governance and opposed Novomatic’s takeover attempts as undervaluing the company. He raised his stake to 9.55 percent through on-market purchases, according to a June 3rd filing.
In the same announcement, AGT addressed a suitability review of its US subsidiary, AGT US, by the Forest County Potawatomi Gaming Commission in Wisconsin, prompted by allegations Kjerulf Ainsworth made to the regulator. According to documentation reviewed by media, the commission is examining ‘corporate governance deficiencies and undisclosed financial transactions’ involving AGT US executives, amid criminal proceedings involving Novomatic. AGT said the commission found the subsidiary had ‘fully complied with all requests’ and renewed its license on May 28th, with no adverse impact on its regulatory standing.
