Struggling Crown Resorts has taken into account investor pressure by stripping its chairman John Alexander of his executive role in the gambling giant as a part of a wide-ranging corporate reshuffle that was officially announced earlier today.
The non-executive part of his job would be taken by Helen Coonan, Minerals Council chair, while the chief executive position has been granted to the current chief financial officer Ken Barton. For the time being, no replacement has still be announced for Mr Barton, which means that he would continue acting as CFO until a suitable replacement is found by the company. Barton will receive an annual payment of up to AU$4.8 million, which includes a base salary of AU$3 million annually plus a bonus.
Rumour has it that the major shareholder of Crown Resorts has supported the move that puts an end of Mr Alexander’s leadership at the gambling giant, where he has been a board member since 2007 and the past three years saw him as an executive chairman. As revealed by the company, Alexander is set to serve as an executive director for a year in order to help with the transition.
Mr Alexander’s dual role at the annual meeting of Crown Resorts in October 2019 fuelled a lot of criticism, as he then used his role to deny what he called “sensationalist” reports of allegations that have been faced by the company.
The Reshuffle Is Held Amid Ongoing Investigations in Crown Resorts’ Suitability to Hold Casino Licence
The company has been facing some hurdles lately, with unprecedented public hearings aimed at checking whether the company is suitable to hold a casino operating licence.
Crown Resorts has explained that the unexpected executive change leaves the gambling giant with a structure that lays closer to the “contemporary governance practices” and the feedback that has been received from some of the company’s shareholders and proxy advisers. The thing is those proxy advisers and some institutional shareholders do not like executive chairman roles because they believe such roles are not much straightforward and could blur the oversight role of the board chair.
Also, as part of the massive reshuffle in the casino operator, three non-executive directors have been appointed to lead each of the licensed operations of Crown Resorts on the territory of Australia. The key Melbourne casino venue, Crown Melbourne Limited, is to be chaired by the former AFL boss Andrew Demetriou. Jane Halton, a former senior public servant, is taking over the same position at Crown Sydney Gaming that is responsible for the giant’s Barangaroo venue. Last but not least, the Crown Perth venue is to be headed by the Future Fund director John Poyton.
Despite the information has not been confirmed by the gambling giant, there are rumours that the reshuffle has been planned for some time and has not come as a result of a spontaneous decision in the light of the latest regulatory investigations faced by the company.
- Author
Olivia Cole
