The Men Who Run William Hill plc

What you need to know about the top executives of betting firm William Hill plc (LON:WMH).

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Management can make all the difference to a company’s success and thus its share price.

The best companies are those run by talented and experienced leaders with strong vested interests in the success of the business, held in check by a board with sound financial and business acumen. Some of the worst investments to hold are those run by executives collecting fat rewards as the underlying business goes to pot.

In this series, I’m assessing the boardrooms of companies within the FTSE 100. I hope to separate the management teams that are worth following from those that are not. Today I am looking at William Hill (LSE: WMH), the UK’s leading bookmaker.

Here are the key directors:

Director Position
Gareth Davies (non-exec) Chairman
Ralph Topping Chief Executive
Neil Cooper Finance Director

Gareth Davies has been chairman since 2010. In his executive career he spent 37 years at Imperial Tobacco, leading it as chief executive for 14 years from its demerger from Hanson until 2010. He has since become chairman of FTSE 100 plumbing distributor Wolseley in 2011 and FTSE 250 packaging firm D S Smith in 2012.

Unconventional

If Ralph Topping is not the only FTSE 100 CEO with a personal blog, ralphtopping.com must surely be the most entertaining. Until recently chairman of the Scottish Premier Football League, Mr Topping is outspoken and unconventional. He has spent his entire career with William Hill, starting as a casual Saturday betting shop worker after dropping out of university, and rising to become CEO in 2008.

As CEO Mr Topping has overseen William Hill’s successful expansion overseas and online, culminating in the buy-out of its online partner Playtech. Growth and a right issue brought the company into the FTSE 100 last May, re-entering for the first time since 2005.  Over the duration of Mr Topping’s tenure the company’s shares have lost 9% against a 3% rise for the FTSE 100. However since 2011 they have raced ahead, up 175% against the FTSE’s 11%.

Retirement

Mr Topping’s retirement is much-anticipated. In 2011 he committed to staying until at least the end of 2013, receiving a retention bonus that was voted against by 49.9% of shareholders. At this year’s AGM he rolled the date forward to the end of 2015. However he sold 70% of his shareholding last month. The firm has said it will initially look internally for candidates to replace him.

Neil Cooper joined the firm as finance director in 2010. A chartered management accountant who qualified working for Reckitt Benckiser, he was finance director of FTSE 250 Bovis Homes for three years. He previously spent eight years in finance roles with Whitbread.

William Hill’s five non-execs bring a variety of backgrounds including media, finance, IT and HR, though it has the feel of a FTSE 250 board and notably the only cross-directorships are with FTSE 250 and small cap firms.

I analyse management teams from five different angles to help work out a verdict. Here’s my assessment:

1. Reputation. Management CVs and track record.

Now excellent. 

 Score 4/5

2. Performance. Success at the company.

Excellent in past two years.

Score 4/5

3. Board Composition. Skills, experience, balance.

A little lightweight.

 Score 2/5

4. Remuneration. Fairness of pay, link to performance.

Retention payment contentious.

 Score 2/5

5. Directors’ Holdings, compared to their pay.

Large disposals.

 Score 2/5

Overall, William Hill scores 14 out of 25, a poor result. That may seem surprising for a stock that has performed so well in recent years, but a heavy dependence on one man who is on his way out throws into relief the challenge of succession, a multi-tasking chairman and somewhat lightweight board.

I’ve collated all my FTSE 100 boardroom verdicts on this summary page.

Buffett’s favourite FTSE share

Legendary investor Warren Buffett has always looked for impressive management teams when picking stocks. His recent acquisition, Heinz, has long had a reputation for strong management. Indeed Mr Buffett praised its “excellent management” alongside its high quality products and continuous innovation.

So I think it’s important to tell you about the FTSE 100 company in which the billionaire stock-picker has a substantial stake. A special free report from The Motley Fool — “The One UK Share Warren Buffett Loves” — explains Mr Buffett’s purchase and investing logic in full.

Mr Buffett rarely invests outside his native United States, which makes this British blue chip — and its management — all the more attractive. So why not download the report today? It’s totally free and comes with no further obligation.

> Tony owns shares in William Hill and Reckitt Benckiser, but no other shares mentioned in this article,

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

Why the FTSE 250 looks an incredible bargain

While all the attention is on the elite FTSE 100, the mid-cap FTSE 250 index looks unbelievably cheap. I don't…

Read more »

2024 year number handwritten on a sandy beach at sunrise
Investing Articles

Here’s my plan to make the most of juicy UK shares ahead of 2024 and beyond!

Our writer reckons there hasn't been a better time to snap up quality UK shares. She explains how she's planning…

Read more »

Young Black woman using a debit card at an ATM to withdraw money
Investing Articles

Here’s how many Lloyds shares I’d need to buy for a £100 monthly income!

Offering a higher dividend yield than the average across FTSE 100 stocks, are Lloyds shares worth buying for passive income…

Read more »

Playful senior couple in aprons dancing and smiling while preparing healthy dinner at home
Investing Articles

Up 27% in 2023, what next for the Tesco share price in 2024?

The Tesco share price has had a great 2023, rising 27% while the FTSE 100 was flat. But what might…

Read more »

Hand is turning a dice and changes the direction of an arrow symbolizing that the value of an ETF (Exchange Traded Fund) is going up (or vice versa)
Investing Articles

FTSE 250? No, I’d buy this index fund instead

Investing in index funds can be a profitable enterprise. Our author has been exploring the different options to determine the…

Read more »

Young black colleagues high-fiving each other at work
Investing Articles

This 4% yielding FTSE 100 giant is dirt-cheap and perfect for passive income!

Looking for a mammoth business with shares trading at discount levels and offering an excellent passive income opportunity? Our writer…

Read more »

UK money in a Jar on a background
Investing Articles

Here’s how I’d use dividend shares to try and turn £5,000 of savings into passive income of £900 a year

With dividend shares at today’s prices, Stephen Wright thinks there are two ways to turn a £5,000 investment into something…

Read more »

Investing Articles

After a recovery that Lazarus would have been proud of, is the easyJet share price worth a look?

With its dividend restored and its balance sheet repaired, the easyJet share price looks like a bargain. But Stephen Wright…

Read more »