In a presentation filed ahead of Penn’s 2025 Annual Meeting, set for 17 June, HG Vora said the company had rewarded executives despite long-term underperformance and what it described as a flawed digital strategy.
It follows an increasingly acrimonious proxy battle between the two organisations, which has in recent weeks included lawsuits and barbed language.
The group, which has nominated three independent directors, argued that the board had failed to hold management able as shareholder returns declined.
HG Vora slams Penn CEO pay packet
A key focus of the critique is CEO Jay Snowden’s pay package, which HG Vora said rose sharply last year.
“The CEO’s 2024 compensation target increased 70% even as total shareholder return lagged peers,” the investor said. It added that Penn had “persisted with — and continued to reward — a CEO who designed the company’s flawed strategy and failed to execute.”
The firm also highlighted what it characterised as significant insider stock sales since 2020, claiming Penn executives had sold over $200m worth of shares during that period. Snowden alone is said to have sold nearly $60m.
The use of corporate aircraft also came under scrutiny. HG Vora criticised what it called “excessive” private jet use by Snowden and other named executive officers, arguing that such perks are difficult to justify in light of Penn’s financial results.
Penn currently owns two private jets, a Bombardier Challenger 600 and a Learjet 45 (pictured).
While the investor acknowledged the benefit of such vehicles for a business with Penn’s geographic spread, it highlighted public flight data revealing the most common points of origin for journeys are airports near the homes of Penn executives.
This, it argued, suggested the jets are primarily used for commuting.
HG Vora added: “Executive perks like outsized private jet use signal a culture of entitlement and detachment from shareholders. At a time when the company’s interactive segment is losing money and returns are down, this behaviour raises serious questions.”
“By voting on the GOLD proxy card, shareholders can send a clear message that the status quo is no longer acceptable and that it is time for genuine change at Penn.”
NEXT.io has reached out to Penn for comment.
