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Read Full BioOn Friday, Penn Entertainment, Inc. announced it plans to shake up its Board of Directors by adding two new members amid shareholder pressure and its upcoming Annual Meeting of Shareholders.
The move follows a protracted battle with activist investor HG Vora Capital Management and implies its shifting emphasis towards growing its digital footprint in the industry. In response to the stakeholder criticism, Penn announced the nomination of HG Vora-recommended Johnny Hartnett and Carlos Ruisanchez, both gaming industry veterans, to help shore up its board ahead of the next AGM.
New Directors Bring Digital and Financial Expertise
Should Hartnett and Ruisanchez garner shareholder approval, they will fill the vacancies left following Ron Naples’s immediate retirement and the planned departures of Barbara Shattuck Kohn and Saul Reibstein later this year.
The new Penn board will consist of only eight members, seven of whom will be independent directors. Nonetheless, insiders view the new appointments as Penn’s attempt to bolster its leadership by recruiting proven industry heads with a wealth of digital and retail gaming experience.
“We look forward to benefiting from Johnny’s and Carlos’s fresh perspectives as we enter into a critical phase for the business,” the board said in its press release about the restructuring. In doing so, they also declared that the appointments have already been reviewed and are supported by Penn’s Nominating and Corporate Governance Committee.
Hartnett most recently served as CEO of Superbet Group, which, under his stewardship, has demonstrated strong growth within the sector and transformed Superbet’s product offerings. He has also held several senior positions at Flutter Entertainment, including leadership roles at Paddy Power Betfair and Sportsbet Australia.
Ruisanchez is heralded for his financial and strategic expertise, as seen during his role as President and CFO of Pinnacle Entertainment, which was sold in 2018. Currently, Ruisanchez is CEO of hospitality investment firm Sorelle Capital but also sits on the board of Cedar Fair Entertainment Company.
“Johnny and Carlos bring critical expertise and experience in the gaming industry, across both digital and retail, that are aligned with the Board’s priorities and are tailored to the opportunities in front of us,” the company added.
Penn: Aligning Board Changes With Digital Ambitions
Penn hopes the appointments of Hartnett and Ruisanchez will help accelerate its digital growth, particularly through its Interactive segment. The suggested appointments also follow the recent hiring of former FanDuel executive Billy Turchin, who became Penn’s Chief Product Officer earlier this month.
Penn Entertainment operates in 28 jurisdictions across North America, split across a range of diverse venues, including casinos, racetracks, and online betting platforms. Within this portfolio, Penn owns household brands within the gaming industry, including Hollywood Casino, L’Auberge, ESPN BET, and theScore BET.
Currently, the company also has over 32 million members enrolled in its PENN Play™ loyalty program and benefits from its digital platforms being supported by partnerships with sports broadcasting giant ESPN.
Although Penn and HG Vora have not reached a formal consensus, the board has acted on its investors’ insights to avoid a costly proxy showdown. Nevertheless, adding Hartnett and Ruisanchez to the board, in tandem with Turchin’s appointment as CPO, will certainly position Penn as a more aggressive player in the sports betting sector.
