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Highlights:
- Crown Resorts CEO Steve McCann Steps down from his role after the Blackstone deal.
- US casino veteran Ciarán Carruthers takes over the top job at Crown.
- CWN share price was on its three-month top yesterday (6 July 2022).
Casino business giant, Crown Resorts Limited (ASX:CWN), has announced exit of Steve McCann from the CEO’s position at both Crown Resorts and Crown Melbourne. Ciarán Carruthers will be appointed as the new CEO of Crown Resorts, subject to a probity approval.
McCann’s replacement will likely be appointed in September. All further leadership board changes related to Crown Melbourne and Crown Perth are to be announced in future by the company.
Meanwhile on the ASX, CWN share price was last quoted at AU$13.090 apiece. For now, the trading has been suspended for CWN shares.
Why is Steve McCann leaving Crown?
McCann joined Crown as its CEO when the company was facing quite serious challenges. There was an inquiry on in NSW. Post that, Crown was subjected to two more inquiries in Victoria and Western Australia – finding Crown unfit to hold a casino license. However, each investigation granted Crown a two-year window to reform itself. Reform, remediation and cultural transformation of Crown happened in just thirteen months of Steve’s leadership. Recently, NSW regulator- Independent Liquor and Gaming Authority (ILGA), granted Crown the permit to launch casino operations at its Crown Sydney development. That regulatory win came a few weeks before the company got acquired by US private equity giant Blackstone Group for AU$8.9 billion. The investors are now establishing their own executives following the takeover. As a result, US casino veteran Ciarán Carruthers is replacing McCann at the top job. Media reports suggest that for his services at Crown, McCann has probably received around AU$5.2 million against his performance rights vested with Blackstone’s takeover.
What else is changing at Crown’s top board?
In what appears as an attempt to bring diversity to Crown’s top board, the company has announced a range of other leadership changes. These include appointment of Bill McBeath as Chairman to the Crown Resorts Limited Board. McBeath was earlier the CEO of ‘The Cosmopolitan’ Las Vegas. Crown is also welcoming former ’Virgin Australia’ leader John Borghetti AO as Chairman of the Crown Sydney Board. Yet another board appointment makes John Van Der Wielen, previously CEO of HBF Health, as Chairman of Burswood Limited.
However, all these additional Board appointments, are subject to a probity review and approval. According to Blackstone, it is committed to help Crown realise its true potential and become a world-leader in travel and leisure. Blackstone believes that bringing in global expertise will therefore complement Crown’s existing skills in business.
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