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Embattled casino and resorts operator The Star Entertainment Group (ASX: SGR) has opted for industry experience in choosing its next CEO, with former Crown Resorts chief Steve McCann set to lead the company as it awaits critical decisions on its ability to hold casino licences in QLD and NSW.
Having led property group Lendlease (ASX: LLC) for more than a decade, McCann discarded his retirement plans in May 2021 to step into the top job at Crown, filling the void left by the departure of Ken Barton in the wake of the Bergin report scandal.
McCann left Crown just a year and five months in that role following the group's acquisition by US investment giant Blackstone for $8.9 billion.
From 8 July McCann will soon lead a different casino giant that is staring down the barrel of the results of its own inquiry, this time the second Bell Inquiry in NSW that has examined the remediation efforts to resolve problems that were very similar to those of Crown, such as poor governance in stamping out money-laundering and problem gambling, among other failings.
This second inquiry led to yet another leadership exodus at The Star which has been in flux for years, and is currently grappling with poor performance as well with the VIP rooms of all its casinos in Brisbane, the Gold Coast and Sydney suffering from double-digit drops in revenue in FY24.
Results were the worst in Queensland with drops of 22.6 per cent and 18.2 per cent in the premium gaming rooms (PGRs) in the Gold Coast and Brisbane casinos respectively, despite statistics released today that show Queensland's tourism numbers are now above pre-COVID levels.
McCann will form part of a third chapter of leadership since inquiries into the group began, after a period in which it was able to fly under the radar while Crown copped heat from the media and regulators for its malpractices.
One executive he will likely work closely with is Jeannie Mok, who in May was appointed The Star's new chief operations officer (COO). Mok had about a three-month overlap with McCann at Crown where she served as chief transformation officer for a year and six months.
"Following a comprehensive search process, the board is very pleased to have secured a CEO of Steve’s calibre, experience and respect in the market," says The Star chairman Anne Ward, who was promoted from non-executive director into the role following the resignation of David Foster.
"Given his time with Crown, and previous long-standing leadership at Lendlease, he has the right credentials to lead The Star’s remediation program.
"His track record reflects his capability to work collaboratively with multiple stakeholders and lead meaningful transformational change and cultural renewal. This experience will be invaluable as we work towards rebuilding trust and expediting the sustainable transformation of The Star."
McCann says he looks forward to joining The Star at this critical time.
"I recognise that there are many complex issues and challenges for the company to address," he says.
"I am committed to working with the Board and the various stakeholders to help drive change, restore confidence and achieve a sustainable resolution."
McCann will be on fixed remuneration of $2.5 million, in addition to a sign-on bonus of $2.5 million plus performance rights and incentives.
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