Entain investors rally behind Stella David for permanent CEO role
Investors in Entain, an international sports betting and gambling company are pushing for interim chief executive Stella David to be given the role permanently, as the company faces ongoing executive instability and regulatory scrutiny.
Support from shareholders
Three major shareholders told the Financial Times (FT) that they see David as the best option to bring stability to the group, which owns brands such as Ladbrokes and Coral.
David took over as interim chief executive in February after the abrupt exit of Gavin Isaacs, who had served just five months. Prior to that, David chaired Entain’s board and had already led the company on an interim basis for eight months in 2023. Investors say her familiarity with the business and strong presence in meetings make her the preferred candidate.
“We would welcome the continuity that Stella staying on as CEO would potentially bring,” one shareholder told FT. David also led Entain for eight months last year on an interim basis.
“She knows the business, she comes across very well in meetings. Given the alternative — a new chair and a new CEO — I’d much prefer to see Stella stay on in the CEO role and [for Entain to] appoint a new chair,” the person added.
Another shareholder questioned whether David wants to take on the role permanently, pointing out that she has not held a full-time executive position since stepping down as CEO of William Grant & Sons in 2016.
Executive turnover weighs on shares
Entain has had four chief executives in five years. Jette Nygaard-Andersen, David’s predecessor, stepped down following investor criticism over £2bn in acquisitions. Gavin Isaacs’ short tenure and sudden exit added to the disruption.
Analyst Ivor Jones from Peel Hunt noted that the ongoing leadership changes have discouraged investor confidence. Entain’s shares have dropped 19 percent since the start of the year, reducing its market value to £3.6 billion.
Legal and regulatory pressures continue
The leadership concerns come as Entain continues to deal with serious legal issues. In 2023, the group agreed to pay a £615 million penalty after a bribery investigation linked to its former Turkish business. Former CEO Kenny Alexander and ex-chair Lee Feldman later filed a lawsuit against Entain over details shared about the settlement. The company has called the lawsuit “without merit.”
Additionally, Entain is under investigation in Australia for alleged anti-money laundering breaches. The company has said it takes the claims “extremely seriously” and is working to strengthen its compliance systems.
