TABCORP CEO Steps Down After Alleged Use Of “Offensive And Inappropriate Language” In The Workplace

Home » TABCORP CEO Steps Down After Alleged Use Of “Offensive And Inappropriate Language” In The Workplace

Adam Rytenskild, chief executive of TABCORP, has resigned from the firm, following the initiation of an inquiry by the board into whether he utilized offensive and inappropriate language in the workplace, according to the Australian Financial Review.

Allegations as reason for resignation:

Rytenskild’s sudden resignation from the firm reportedly took place after he found out about the claims. However, according to him, he doesn’t remember saying such comments. Speaking about it, he commented: “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.”

Bruce Akhurst, the firm’s current chairman, will become interim CEO till the substitute is found. Martiana Partners has been tasked with finding a new permanent chief executive.

Commenting on Rytenskild’s resignation from the firm, Akhurst commented according to the Australian Financial Review: “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 & CEO and his contribution to the transformation of the company.”

According to sources acquainted with the inquiry, who weren’t allowed to talk about the matter publicly, the board reportedly got the complaint and hired an outside law company to evaluate the allegations. In addition, the complaint was filed in the last two weeks.

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Relatedly, Rytenskild will be stripped off from any incentive payment, which could potentially be worth between $5m and $10. Additionally, TABCORP refused to provide a comment on the claims.

Rytenskild’s resignation won’t have no impact on the firm’s strategy:

The departure of Rytenskild will reportedly have no impact on the strategy of TABCORP. Speaking on this, Akhurst commented: “We have the depth and capability across the executive and the senior leadership team to continue our transformation.”

Furthermore, the departure has occurred less than a month after the company revealed that it experienced a revenue loss of $637m for the period of 6 months that ended on December 31. However, that loss was heavily impacted by a $732m reduction in the value of cash on the tax rate paid in South Australia and New South Wales.

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Income fell 5% to $1.2bln and the group’s earnings decreased 14% to $170m, numbers that point to wider problems facing the betting market.

On March 14, shares of the firm closed at 76 cents, a decrease of 2.6%.

Achievements during his time at TABCORP:

As for Rytenskild’s long history with TABCORP, it dates back to 2010 when he officially became the chief executive of the firm. Additionally, he continued in his role as chief executive in 2022, which was when the firm spun off its lotteries business into a separate business.

As he took on the role of CEO, his main goal was to to revamp the product offering and culture of the firm, according to an interview with the Australian Financial Review. In this regard, he commented according to the Australian Financial Review: “Frankly, this is a bit colloquial, but it’s true for me. I really have a ‘no dickhead policy’. I think that’s important.”

In addition to his aforementioned goal, he also tried to convert TABCORP from being a retail betting operation into a digital bookie. Although the firm has a monopoly on bookmakers in Victoria, Queensland and New South Wales, it has seen the loss of notable market share to global bookies involving Entain and Sportsbet, which have managed to lure younger clients who place wagers via mobile applications.

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As for his remarkable achievements during his time at the firm, Rytenskild was able to persuade the Queensland and Victorian governments to permit TABCORP to pay the identical sum of tax as its online competitors. This was important because the firm had formerly operated according to the different arrangement with regard to its exclusive rights.

But that’s not all, because in 2023, he managed to obtain a two-decade extension of the firm’s Victorian license for wagering in pubs and retail betting. Said extension was worth $860m.

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