ShareJette Nygaard-Andersen, the CEO of Entain, the parent company of Coral and Ladbrokes, has resigned with immediate effect. Her departure from the company comes in the wake of a £615 million settlement following an investigation into a bribery case concerning a business Entain owned in Turkey.
Nygaard-Andersen's tenure, which began in January 2021, has been marked by a significant drop in the company's share price, which has fallen by more than a third.
News of her resignation marked an immediate recovery.
Nygaard-Andersen's leadership has long been under scrutiny from activist investors, including Eminence Capital, Sachem Head Capital Management, and Dendur Capital, who have expressed dissatisfaction with the company's financial performance.
Despite this, Nygaard-Andersen doubled her shareholding last month, seemingly demonstrating confidence in her ability to turn the company's fortunes around.
The company's share price saw a 5% increase following the announcement of Nygaard-Andersen's resignation. Stella David, a non-executive director, has been appointed as interim CEO.
Shareholders will be hoping this is the beginning of a repair job after seeing their investment lose 47% of its value in only two years.
During her tenure, Nygaard-Andersen navigated several challenges, including a £585 million bribery financial penalty that Entain had to pay HMRC.
This penalty was related to historical failings that predated her time as CEO. Despite these challenges, Nygaard-Andersen was praised by Entain Chairman Barry Gibson for her dedication and leadership during this difficult period.
The settlement includes a £585 million penalty, a £20 million charitable donation, and a £10 million contribution towards the costs incurred by HMRC and the Crown Prosecution Service.The penalty will be paid in installments over four years.
Despite the challenges faced during her tenure, Nygaard-Andersen stated that her time at Entain was "rewarding and challenging in equal measure".
She believes that the resolution of the HMRC investigation offers a "clean inflection point" for her and for Entain, and that the company is now "safe, stable and sustainable".
