The embattled casino giant looks set to record a ‘second strike’ protest vote against hefty executive exit payments but also dodge a board spill.
Crown Resorts looks set to dodge a board spill despite getting a big protest vote by shareholders against hefty termination payments paid out during its executive exodus.
Directors left the casino giant in droves in the wake of its explosive money laundering scandal, detailed in last year’s bruising NSW inquiry that left the company without a gaming licence for its new $2.2bn venue at Barangaroo in Sydney.
Crown’s annual report released last month showed former chief executive Ken Barton pocketed $3.35m as he walked, ex Australian Resorts boss Barry Felstead got $3.2m and former executive vice president of strategy and development Todd Nisbet received $3.11m.
At the company’s annual general meeting on Thursday, 30.68 per cent of proxy votes were cast against the remuneration report.
The final vote tally will be released after the meeting, but it appears likely the vote against will be above 25 per cent for the second year running – known as a “second strike”, which triggers a board spill motion.
But proxy votes were largely against a contingent resolution to hold a spill meeting within 90 days, with just 4.1 per cent in favour.
“It appears that the spill resolution will not pass,” interim chair Jane Halton said.
“We would like to thank shareholders for their support of our reconstituted board as we continue to drive the reforms necessary to restore confidence and trust in Crown.”
Ms Halton said the company was “listening to the concerns raised by shareholders” about the executive termination payouts.
In her earlier address, she described them as being “in the best interests of shareholders”.
“The board carefully reviewed each executive’s termination arrangements, our legal obligations and the surrounding circumstances at the time these decisions were made, including obtaining advice,” Ms Halton said.
“In this context, the board considers its decisions on the termination payments to former senior executives were made in the best interests of shareholders having regard to the circumstances facing the company.”
She also said the board overhaul was “required to accelerate and progress the implementation of Crown’s transformation and remediation programs”.
Ms Halton noted there had also been rumblings from shareholders about aspects of the remuneration package for new chief executive Steve McCann, but said it was “aligned” with the market.
During question time, Ms Halton refused to answer a question about “what went wrong?” with Crown, saying that had already been well covered by the NSW inquiry.
“We have done a number of reviews about the past,” she said.
The findings of this year’s Victorian royal commission are due to be publicly released by the end of this month, while a separate royal commission in Western Australia continues.
Major shareholder and former chairman James Packer is scheduled to testify at the investigation in Perth next week, with the Friday hearing slated for an early 6.30am WST start.
Mr McCann was asked about his relationship with Mr Packer, saying he’d only dealt with the reclusive billionaire in relation to the Barangaroo land sale in his former role as boss of Lendlease.
“My communication with Mr Packer is zero,” the chief executive said.
Mr Packer’s influence over the Crown board was described in the NSW inquiry findings as “disastrous” as he was the driving force to secure more of the Chinese high-roller junket tours at the centre of the money laundering scandal.
Originally published as Crown set to dodge board spill motion despite shareholder revolt over departing executive payments
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