888.com chief cashes £2m of his chips in gaming float

John Anderson, the chief executive of the online gaming business 888.com, will make up to £2m from selling shares in the company's imminent float - more than a quarter of the free shares he is receiving from the group.

He has been awarded a 0.5 per cent stake in shares as a bonus for steering the company to its planned £546m to £714m flotation at the end of the month, and will be awarded another 0.5 per cent over the next four years. Of the 1.6 million shares he is receiving now, he is cashing in 960,000 in the float, which will net him up to £2m.

The company's prospectus, published yesterday, also reveals Mr Anderson is to receive £475,000 a year in basic salary, with the potential to receive an additional £950,000 as a cash bonus if he meets performance targets. He will also receive a 15 per cent contribution to his pension fund and reimbursement for rent on an apartment in Gibraltar, where the company is based.

Marie Stevens, the newly appointed chairman, is investing £250,000 of her own funds in shares at the float. She gets a £140,000 salary.

The biggest winners from the float are the two sets of Israeli brothers who founded the business. They are cashing in £207m between them by selling off 25 per cent of the company to the open market. They will retain a 69 per cent stake after its listing. Ofer Lazovski, an employee and shareholder, will make up to £3.5m from selling some of his shares.

888.com unveiled last week an indicative price range of 162p to 212p for its float that will see it valued at £546m to £714m. Grey market trading will begin on 29 September.

The prospectus highlighted the potential threat of prosecution the company and its directors face in the US, where internet gambling is considered illegal. Concerns that directors could be jailed in the US dogged the path to flotation of its rival, PartyGaming, forcing the company to slash its valuation. 888.com has had to spell out to investors the uncertain legal status of online gambling in the US, where it gets about 55 per cent of its business.