Times Online
Richard Segal has sensationally quit as chief executive of PartyGaming, the operator of the world's biggest online poker website, after refusing to up sticks and leave his family to run the company from Gibraltar.
The PartyGaming boss spearheaded the company's bumper £4.6 billion flotation on the London market last year and presided over its entry into the FTSE 100 index of leading shares. And he was a major driving force behind PartyGaming's strategic expansion into blackjack and its unification of its online betting system.
Mr Segal, a former Rank executive who only joined PartyGaming in August 2004, has two children, aged 10 and 8. In explanation of his shock decision to leave, Mr Segal said his choice was a "very difficult" one, but added simply: "My ties with my family are strong. My family comes first."
He said PartyGaming's Gibraltar headquarters was the "engine room" and the "heart of the business". "I am the only executive who has not relocated himself and his family, lock, stock and barrel to Gibraltar," he said.
On his departure Mr Segal will collect a full-year's salary and 12 months' worth of vested company options.
His departure is a massive loss to PartyGaming, which today acknowledged his importance as it began the process of finding a replacement.
Martin Weigold, the group finance director, said it was likely PartyGaming would go outside the company in its search for a new chief but provided no timeframe for finding Mr Segal's replacement.
"The search process has been commenced, but it is important to get the right person, not the first person," he said.
PartyGaming said: "At the time of last year's IPO (initial public offering), Richard agreed to commute each week to PartyGaming's headquarters in Gibraltar. Given the rapid growth of the company, he and the board agree that the [chief executive] now needs to be located in Gibraltar along with all the other executive directors.
"Following discussions with his family, Richard has declined a request by the board to move to Gibraltar and will therefore be leaving the companySeThe sudden and surprise departure of Mr Segal eclipsed PartyGaming's bumper 49 per cent increase in pre-tax profits to $583.7 million for the year to the end of December.As Mr Segal ran through the company's list of financial achievements, including paying its first dividend to shareholders following the record-breaking profits, he described 2005 as an "excellent year for the company" and said he would be leaving it "in great shape".The increase in pre-tax profits at PartyGaming was slightly ahead of the City's expectations, with analysts looking for a rise of about 47 per cent to about $545 million.The profits jump came against a 63 per cent increase in full year revenues to $977.7 million, following the introduction of blackjack for punters and the expansion of its poker offering.As he recommended a final dividend of 5.25 cents per share, worth $200 million, Mr Segal said trading in the new year had been in line with PartyGaming's expectations.The shares closed last night at 130.5p, valuing PartyGaming at just over £5.2 billion.
