Amy Howe, the former FanDuel CEO, left the company in May after being at its helm for five years. However, she would receive much more from her exit deal than previously reported, as she walks away from the company with a potential $21.2 million package.
New Data Shows Howe’s Exit Package Could Be Over $21 Million
At the time, it was widely reported that Howe would receive a $4.37 million severance package, equivalent to 24 months’ salary plus bonus, along with an unspecified amount of stock. However, the full terms of the package were disclosed in an exhibit accompanying Fan Duel’s parent company, Flutter’s recent financial report, revealing that the total value is significantly higher than originally reported.
The figures are outlined in the agreement Howe signed with Flutter upon leaving FanDuel. The document states that the award had a theoretical maximum value of $12.5 million over a five-year period. On a pro-rata basis, this equates to $11,473,165 in cash payments.
It should also be noted, however, that the agreement also preserves a significant portion of Howe’s stock-based compensation, divided between performance stock units and time-restricted stock units. The agreement also provides Howe with an additional $1 million in legal fees, which appears to have been included in the severance package originally reported.
Adding up all of these elements and using Flutter’s share price at the time the agreement was struck, puts the total economic value of Howe’s exit package at a solid $21.2 million. This is almost five times the $4.37 million previously reported.
Howe Was Instrumental in FanDuel’s Growth Over the Past Years
Howe became CEO of FanDuel in 2021, after being an interim CEO of the company following Matt King’s stepping down from the position. Over the next few years, Howe helped push the company forward into the rapidly expanding US betting market.
Under her leadership, FanDuel combined the technology and sportsbook expertise of parent company Flutter with an understanding of the US bettor to create a parlay product that has outpaced its competitors. The stronger margins generated by parlay betting, along with improved customer-acquisition tools that have helped reduce costs, put FanDuel on track to achieve its first profitable year.
Additionally, FanDuel struck a sponsorship deal with MLB at the start of the 2023 baseball season. With this, FanDuel, which was already a sponsor of the NFL and NBA, solidified its position as a major sportsbook in the US market, rivaling the likes of well-established giant DraftKings.
While she is now exiting FanDuel with a massive check, having aided its development over the past years, Howe also must meet several obligations to receive the full payout, which will be distributed at various points through early 2029. These include a one-year non-solicitation agreement, along with confidentiality and non-disparagement provisions.