The Star Entertainment Group’s chair has responded to shareholder questions about new group CEO and managing director Steve McCann’s remuneration package.
Amid the recent troubles the Australian casino operator has faced, including the damning verdict of the Bell Two report into failings across the business, questions were raised about the entitlements attached to McCann’s contract upon his arrival in July.
As well as an AU$2.5m salary, he received a $2.5m sign-on bonus and could earn up to $10m in bonuses by the end of the 2026 financial year.
Chair Anne Ward noted at The Star’s AGM that the company had fielded comments from shareholders on the “size and structure” of the package.
But she said McCann’s package reflects the "significant complexities of the role, the nature of the turnaround of the company required and the significant commitment made by Steve in agreeing to take it on.”
His "long history leading ASX-listed companies, his recent experience as group CEO of Crown Resorts and his existing relationships with some of The Star’s key regulators and other stakeholders” also influenced the decision, Ward added.
Ward said The Star has “acknowledged that achieving remediation milestones does not in itself mean the business has been remediated and cultural change has been embedded.”
McCann revealed that The Star is in “advanced discussions” on filling “a couple of key roles” and that he is confident of progress on this before the end of March.
He said a “critical part” of the company’s remediation will be to fill key vacancies in “senior leadership” and “develop a high-performance team that will live and breathe the appropriate values, and work together to reset the culture and improve the rhythm and performance of the business across all aspects of both our gaming and non-gaming operations.”
However, The Star’s remuneration report into how much its executives should be paid faced significant shareholder revolt and a ‘first strike’ at the AGM.
While the resolution passed, over 40 per cent of the participating shareholders voted against it.
