Scientific Games is no different when it comes to placing major importance on this concept. Currently, Scientific Games has a board that elects all 11 members on an annual basis and 8 of those 11 are independent director nominees. Their board committees are independent other than the Executive and Finance as well as the Compliance Committee. Chairman and Chief Executive Officer roles are separated and there are regular board and committee self-evaluations. The company provides cash and equity compensation “clawback” policy, anti-hedging policy, stockholder right to call special meetings, and “anti-takeover” provisions to protect the interests of their stake holders. Director independence guidelines have been adopted to determine that individual directors are independent under the standards of the NASDAQ market. This annual determination assures the quality of the board’s oversight and reduces the possibility of damaging conflicts in interest. Scientific Games has also adopted corporate governance guildlines that outline the structure, roles, and functioning of the board and addresses various governance matters including director independence, the board selection process, length of board service, board meetings and executive sessions of independent directors, …show more content…
Another strength is the fact that Scientific Games has an international presence with a hold in 50 different countries. A weakness for Scientific Games is the uncertainty of successfully integrating a merger, as they have aggressively expanded through mergers and acquisitions in the last 2 years. Scientific Games relies on a small number of customers for a large portion of its revenues in the lottery business. Lastly Scientific Games has a weakness based on the unpredictability of the gaming industry and casino needs are driven by a multitude of factors outside of their control. Opportunities include loose regulation in the lottery and gaming businesses provide opportunities to penetrate new geographies and gain a dominant market position in those areas. The gaming segment can be developed further with Scientific Games strengthening their presence on Facebook, Android, and Apple Platforms. Finally, Scientific Games can use R&D to make their products more sophisticated in order to make them more interactive and appealing. While threats can be regulatory issues, meaning stiffness in regulation can cause a decline in business but lightened regulation could potentially open the door for more competition. A high price gaming market exposes Scientific Games to