Using corporate jets as ‘personal Uber service’, HG Vora slams Penn executives
Activist investor HG Vora Capital Management has launched fresh allegations against Penn Entertainment (NASDAQ: PENN) management. In an investor presentation filed with the (SEC) on 21 May 2025, HG Vora alleges that Penn’s top executives, CEO Jay Snowden (left on the featured image) and CFO Felicia Hendrix (right on the featured image), have been treating the company’s private aircraft as their “personal uber service“.
This claim, detailed in a Form DFAN14A filing, is the latest salvo in HG Vora’s campaign to overhaul Penn’s board and strategy. The charge of excessive executive benefits arrives as Penn Entertainment heads toward its 2025 Annual Meeting, to be held June 17, at which shareholders will vote that could remake the company’s board. The “personal uber service” accusation is more than just a financial quibble; it’s a narrative weapon seemingly designed by HG Vora to depict Penn’s leadership as detached and self-indulgent, particularly when set against a backdrop of declining shareholder returns and contentious moves.
‘Personal Uber service’ allegation: Flying in the face of shareholder interests?
At the heart of HG Vora’s latest offensive is the alleged misuse of Penn Entertainment’s two corporate jets: a Bombardier Challenger 600 and a Learjet 45. According to the activist investor’s SEC filing, these aircraft logged over 1,100 flights and accumulated more than 1,400 hours of flight time between 1 January 2020, and 31 December 2024.
While acknowledging that a company with Penn’s geographical footprint—43 gaming and racing properties across 20 states—might benefit from corporate aircraft, HG Vora contends that the actual usage patterns suggest otherwise. The filing states, “based on publicly available flight data, some of the most common points of origin and destinations for these flights appear to be airports near the homes of PENN’s executives, suggesting that the jets are used primarily for commuting“.
Specifically, HG Vora’s presentation highlights frequent flights to and from airports near the executives’ residences:
- Boston, MA, where CEO Jay Snowden resides, allegedly saw 462 total flights (231 to, 231 from) connected to Penn’s jets.
- Teterboro, NJ, an airport often used for travel to and from New York City where CFO Felicia Hendrix reportedly lives, was linked to 212 total flights (107 to, 105 from).
For comparison, Reading, PA, near Penn’s Wyomissing headquarters, was associated with 760 total flights.
HG Vora says that such practices are difficult to justify given Penn’s financial performance. The investor says, “Executive perks like outsized private jet use signal a culture of entitlement and detachment from shareholders“. This criticism is amplified by the context that “the company’s interactive segment is losing money and returns are down“, raising what HG Vora terms “serious questions” about stewardship of company assets. The focus on airports near executive homes directly challenges the typical corporate rationale for private jet usage, which stresses efficiency in reaching diverse business locations. If these aircraft are indeed frequently used for commuting, it suggests a blurring of lines between personal convenience and corporate necessity, undermining the “business purpose” justification. This specific allegation of jet misuse could thus become a potent symbol for the broader governance failings HG Vora aims to expose, potentially making abstract concerns about board oversight more tangible and alarming for the average shareholder.
Proxy war boiling over
HG Vora, which beneficially owns approximately 4.8 percent of Penn Entertainment’s outstanding common stock, has nominated three independent candidates for election to Penn’s Board of Directors at the upcoming annual meeting, saying that change is needed to rectify what it sees as years of underperformance and strategic missteps.
HG Vora’s criticisms are wide-ranging:
- Flawed strategy and value destruction: The investor contends that Penn’s strategic pivot from a “best-in-class regional 바카라 operator” to a diversified sports, media, and technology conglomerate—particularly its costly foray into online sports betting with ESPN Bet—has been a failure, leading to an alleged $11 billion decline in market capitalisation since early 2021. Penn’s Interactive division has reportedly generated an EBITDA loss of approximately $1 billion and write-downs of around $850 million.
- Excessive executive compensation: A major point of contention is CEO Jay Snowden’s remuneration. HG Vora highlights that Snowden’s 2024 target compensation saw a more than 70 percent increase, reaching $25 million, making him the second-highest-paid CEO among peers, according to the activist. This occurred even as Penn’s stock allegedly underperformed peers consistently over multiple years.
- Significant insider stock sales: HG Vora points to over $200 million in stock sales by Penn executives since 2020, with Snowden himself reportedly selling nearly $60 million worth of shares. The investor presents this as evidence of a misalignment between management’s interests and those of long-term shareholders.
Board entrenchment and disenfranchisement of shareholders: HG Vora has accused Penn’s board of attempting to “entrench itself” and engaging in an “ongoing assault on shareholder rights“. This includes Penn’s decision to reduce the number of board seats up for election at the 2025 annual meeting from three to two, a move HG Vora is challenging in court, alleging it was done to “deprive shareholders of their fundamental right to elect three directors of their choosing“.
Penn Entertainment’s position
Penn Entertainment has actively defended its overall direction and board composition against HG Vora’s broader campaign. The company maintains that its transformation, including the investment in the ESPN Bet platform, is aimed at building a robust digital presence and engaging with younger demographics, which it believes will drive future growth. Penn has highlighted its engagement with HG Vora, noting “over 25 meetings or calls since 2023“, and has pointed to board refreshment efforts. Following the upcoming election, 75 percent of Penn’s directors will have joined the board since 2019. Furthermore, Penn has agreed to support two of HG Vora’s three director nominees—Johnny Hartnett and Carlos Ruisanchez—after two incumbent directors stepped down and another retired.
The company has also launched counter-offensives, branding HG Vora’s campaign as “short-sighted and harmful to shareholders’ long-term value“, “self-serving“, and accusing the activist of making “value-destructive” demands, such as proposing a 50 percent leveraged share repurchase that Penn claims would destabilise its finances. Penn also asserts that HG Vora is “refusing to take yes for an answer” regarding the two mutually supported board nominees.
SiGMA News has reached out to Penn Entertainment seeking comments regarding HG Vora’s allegations and corporate governance practices. The queries remain unanswered until the time of publication.
The shares of Penn Entertainment ended 2.86 percent higher at 15.08 USD apiece on the NASDAQ stock exchange on Friday, 23 May 2025.
