Tabcorp Holdings (ASX:TAH) cut CEO Gillon McLachlan's short-term incentive (STI) outcome by 20 percentage points after applying a risk modifier to his compensation due to regulatory and compliance issues the company faced in fiscal 2026, according to a Wednesday filing with the Australian bourse.
The cut offset an increase of 10 percentage points that reflected the executive's "significant individual contribution" to the company's objectives during the fiscal year, resulting in a final STI outcome of nearly 107% of target, per the filing.
The company applied the same risk modifier to the STI outcome for CFO Mark Howell, and also made downward adjustments for all other members of the executive leadership team.
Tabcorp is the subject of an ongoing investigation by the Australian Transaction Reports and Analysis Centre (Austrac).
The company's shares fell 1% in recent Wednesday trade.