Steve McCann Unveiled as New Crown CEO

Steve McCann is the new Crown CEO

Steve McCann is the newly appointed Crown CEO, a role that comes with a monster-sized payment package. McCann held a similar position with casino-related property giant Landlease for more than a decade. He intends to step down on May 31.

Crown Chairman Helen Coonan has been acting executive chairman since Ken Barton resigned following the Bergin inquiry. Coonan welcomed McCann to Crown’s team.

“Steve is a first-class appointment for Crown and the right person to embed the ongoing reforms necessary to restore regulatory and public confidence in our operations.”

New Crown CEO McCann is relishing the opportunity to help turn around Crown’s flagging fortunes.

“I am looking forward to joining Crown at a crucial time for the organisation and see a real opportunity to help drive significant shareholder value as the company addresses its challenges and emerges from the constraints of the pandemic.”

Details of New Crown CEO Salary Emerge

McCann has the unenviable task of steadying the sinking ship that is Crown Resorts. Crown is continually in the headlines for all the wrong reasons. Its use of junkets, evidence of money laundering, and receiving fines are a handful of recent examples.

The new Crown CEO has shown his remarkable negotiation skills before he has even unboxed his belongings, judging by the incredible incentives he receives.

$2.5 million is McCann’s basic salary before any short term and long term incentives. Crown has to pay hefty compensation because they will not have had applicants breaking down their doors to take over as the Crown CEO.

McCann negotiated short and long-term incentives. The details of these are not public knowledge, but various Australian newspapers reported massive sums.

First, the new Crown CEO will receive $3.25 million in incentive payments every year if he achieves the mid-point of his targets. Furthermore, he receives 400,000 free performance rights, vested over three years, worth another $1.7 million. McCann will likely receive $7.5 million per year for the next three years, more if he excels.

The remuneration committee has the final say on whether or not McCann receives 400,000 free shares. The incoming Crown CEO has thought of that and has it written into his contract that he gets the cash equivalent if the shares are not issued. In addition, he still receives a sign-on bonus and incentives worth $5 million if Crown’s ownership changes before he takes up his new role. The man is a genius.

Crown Officially Rejects Blackstone’s Offer

Overseeing a potential takeover or merger is one of McCann’s first jobs as Crown CEO. He will not guide Crown through a Blackstone takeover unless the American giant returns with a substantially higher offer.

Blackstone tested the waters with an $8.02 billion bid for 100% of Crown’s stock. The offer worked out at $11.85 per share. It later revised its proposal to $12.35 per share, but Crown is not interested in selling at this price.

“The Board has unanimously concluded that the Revised Proposal undervalues Crown and is not in the best interests of Crown’s shareholders. In coming to this conclusion, the Board considered a range of scenarios given the regulatory inquiries in relation to Crown which are underway.”

Crown is undecided on the potential merger with rivals Star Entertainment and has requested more information from Star.

“The Crown Board has not yet formed a view on the merits of the Merger proposal. To facilitate the Crown Board’s assessment of the Merger Proposal, Crown has requested Star to provide certain information to allow the Crown Board to better understand various preliminary matters.”

Anton Tagliaferro is an investment director at Investors Mutual, a company that owns two per cent of Crown stock. Tagliaferro believes the merger is the best deal for both parties, but there is some way to go when it comes to the correct valuations.

“We think Crown assets are superior to Star’s, and certainly the balance sheet is far superior with Crown having zero debt, basically. Much of where control hangs ultimately will depend on which offer James Packer accepts.”

Packer, of course, holds 37% of Crown’s total shares.