Sage boss blasted over PartyGaming

SAGE's biggest shareholders are calling for chairman Michael Jackson to step down as chair of controversial gambling firm PartyGaming after just three weeks in the job.

Five of Sage's 10 largest investors, polled by the Mail, said they were unhappy with Jackson steering PartyGaming through its choppy £5.5bn float and beyond. 'In this case we think he should step down,' said one leading investor.

Others believe Jackson cannot devote enough time to the FTSE 100 software firm. 'Jackson's new role will be significantly time-consuming,' pointed out one institutional investor.

Shareholders are also angered by Jackson's multiple chairmanships. PartyGaming will be in the FTSE 100 after it floats, meaning he will chair two company's in the leading index - contravening strict corporate governance guidelines.

Jackson is also chairman of venture capital outfit Elderstreet Investments, four quoted Aim firms and the unquoted software firm SearchSpace. Sage's leading shareholders, which include Morley Asset Management, Legal and General and M&G, now question Jackson's decision to chair PartyGaming.

Two of Sage's big institutional investors have launched an investigation into his new role. One said: 'Our corporate governance people are probing it.' Jackson, 55, will receive a salary of £500,000 a year plus a £1m bonus for getting PartyGaming's float away. He earns £143,000 at Sage.

RREV, the National Association of Pensions Funds' research arm, said Sage's board should explain its decision to allow Jackson to become chair of the online gambling company.

Sage said Jackson had discussed his position with the company's senior non-executive director, Lindsay Bury, while PartyGaming added it was satisfied that Jackson had 'capacity for his roles'.