Australian gambling group Star Entertainment has distributed bonuses worth a total of AU$1.4 million to its top executives, despite missing their yearly financial targets while at the same time appropriating AU$9.6 million in JobKeeper money to cover the wages of its employees.
The middle of the week saw the casino and entertainment company reveal that its chief executive officer Matt Bekier received an AU$2.3-million bonus for the 2020 fiscal year. The figure represents a reduction from AU$3.3 million a year ago and AU$4.4 million back in 2018. The Star Entertainment boss’ salary was reduced by AU$173,000 to AU$1.55 million, after Mr Bekier took a pay cut of 40% at the time when the group was forced to close its Sydney, Brisbane and Gold Coast casinos because of the coronavirus pandemic outbreak. At the time, it also stood down 95% of its 9,000 workers because of the closures.
Still, according to The Star’s annual report, the suffering gambling giant awarded its CEO an AU$829,872 bonus in deferred shares among the overall amount of AU$1.4 million that was granted to the company’s top five executives. As revealed by the company, the operator paid the bonuses in equity in order to preserve cash. They will become available after a year in case the executives remain with The Star Entertainment.
Top Executives Fail to Meet Their Financial Targets for 2020
Sally Pitkin, the remuneration committee chair of the Australian gambling group, explained that the executive team failed to meet their financial targets for 2020 due to the coronavirus pandemic. Still, the board decided to exercise its discretion and give the bonuses to its top executives.
The way the company’s executive team has responded to the Covid-19 infection outbreak, as well as the achievement of the group’s strategic targets and the need to keep key executives with the company amid a period of economical uncertainty and strong competition from the new Sydney-based casino of the operator’s rival Crown Resorts.
As Ms Pitkin said, The Star Entertainment was 5% ahead of its profit target. The company also saw a 16% increase from the previous year in February before the forced coronavirus lockdown forced it to shut its venues, which led it to an AU$94-million full-year loss.
The Australian gambling and entertainment giant revealed that the group and about 7,000 staff members have received JobKeeper payments amounting to almost AU$130 million by the end of September. In the period from April 1st and June 30th a scheme aimed at covering the wages of staff who remained working at the casino granted The Star Entertainment with a total of AU$9.6 million. Another AU$55 million were granted directly to the gambling giant’s staff members who either worked on reduced hours or stood down.
As shared in a statement by a spokesman of the gambling operator, the JobKeeper scheme allowed the company to return its staff members to work at a time when it would not have been possible. The company’s representative explained that the money gave the gambling operator the chance to continue operating venues despite them not generating profit.
- Author
Olivia Cole
