Corporate Governance Analysis of TABCORP LTD - Assignment Help

Executive Summary

Tabscorp Holdings Ltd. is an Australian company that was created in 1994. Tabcorp Ltd. has been recognized as top international operator of wagering, casinos and lotteries businesses eighth time in a row in past nine years. Tabcorp Ltd. has a long history of conducting business for its customers, partners and communities as a whole. It has been carrying a diligent approach towards corporate governance while making sure that its policies are continuously reviewed against the highest standards of compliance and best practices. The board of Tabcorp comprises of eight independent Non-Executive Directors (NED) along with one managing director and one CEO. The directors of Tabcorp Holdings Ltd. are responsible for submitting their report for the company and its subsidiaries in joint arrangement every year. A mix of fixed remuneration (set against responsibilities of role), short-term incentives (applied for individuals at level where performance can be influenced) and long-term incentives (applied to senior employees) are given to employees using cash, restricted shares and performance rights tools. Despite of taking corporate governance policies seriously, the media reports showed the issues with remuneration strategies of Tabcorp Holdings Ltd. as it received negative feedback from 40% of the voters. However, the company’s response to this issue was that they had been following competitive, contemporary and strongly aligned remuneration policy in line with aim of shareholders’ value creation. The company management also announced to change its bonus policy soon after the strike. The analysis shows that the board of Tabcorp has somewhat remained to stay accountable to external stakeholders by reviewing its bonus policies and by bringing out changes in the remuneration policy so that stakeholders can remain satisfied. Tabscorp Ltd. has also been vigilant in connecting with society through taking actions motivated by its legitimation tactics as well as by having proper disclosure of information in its annual reports. The analysis shows how Tabcorp respond to stakeholders’ concerns and take their issues seriously which makes it a legitimate corporation. 

Section 1: Introduction

The current report is written for Tabcorp Holdings Ltd. in order to investigate and conclude over its ethical and governance outlook in media and public. In order to reach at conclusion, a systematic research has been conducted under which annual reports, corporate governance report, media releases and industry analyst articles are read over. In order to discuss the corporate governance of Tabcorp, legitimacy theory and boards functions by Garratt are used as theories. The purpose is to get outcome over the legitimacy and corporate governance outlook of Tabcorp Holding Ltd. 

This report is dissected into three major sections that are as follows:

• Section 1: Introduction about the report and its outcomes are discussed here.
• Section 2: Analysis of company operations and its progress, summary of corporate governance of the company, board orientation and communication under legitimacy theory of company are discussed here.   
• Section 3: Conclusion is written here.

Section 2: Analysis 

Company Introduction 

Tabscorp Holdings Ltd. is an Australian company that was created in 1994. The company’s headquarters are based in Melbourne, Australia. It has been working in Gambling industry under its three core businesses i.e. Wagering and Media, Lotteries and Keno and Gaming services. The services are offered through digital, retail and sky media platforms (IBISWorld, 2018). The company’s mission is to drive commercial success through offering championship in social and sustainable way. Moreover, its vision is to become a trusted gambling entertainment company with a purpose of serving excitement with integrity (Tabcorp, 2018a). The company has four strategic pillars on which its operations are based i.e. customer led, superb experience, brilliant execution and collaborative partnerships.

• Wagering and Media: Through this segment, the company provides totalizator and betting services in racing and other events. It operates in a network of UBET agencies, hotels, TAB and clubs. The betting is also offered through internet, retail and mobile devices. The segment also engages into three Sky Racing television channels. 
• Lotteries and Keno: This segment allows the company to offer services like lottery. 
• Gaming: Through this segment, Tabscorp offers electronic gaming machines and offers value-add services along with monitoring and reporting, cashless commitment, tickets in and linked jackpots. 

The company has generated $917 million in racing industry during fiscal year 2018 (Tabcorp, 2018a). Currently it has more than 5000 team members and more than 3 million registered customers. The company has around 9000+ venues in Australia through which it has been offering its services. Tabcorp Ltd. has a national presence as a dominant gambling company with most of its business flourished in New South Wales followed by Queensland and Victoria for all of its business segments (see figure 1 below).