Australia’s Star Entertainment has named Steve McCann as its new group CEO and managing director, as the beleaguered casino operator seeks to navigate through regulatory inquiries and recent management upheavals. McCann, previously the CEO of Crown Resorts, now owned by Blackstone (NYSE), will assume his new role on July 8.
Star Entertainment is currently facing its second regulatory inquiry into the suitability of its Sydney operations. This scrutiny has already led to significant departures from the firm’s upper management. McCann’s primary task will be to steer the company through these challenges and stabilize its leadership team.
As of 0239 GMT, Star Entertainment’s shares were up by 2.2%, having risen as much as 3.2% earlier in the trading day.
“I look forward to joining The Star at this critical time,” McCann said in a statement. “I recognize the many complex issues and challenges the company faces.”
McCann’s appointment comes after the departures of former CEO Robbie Cooke and finance head Christina Katsibouba in March, following the resignation of long-standing CEO Matt Bekier nearly two years ago amid investigations into breaches of anti-money laundering and counter-terrorism laws at Star.
Despite the change in leadership, some analysts remain cautious. “A change of CEO will do very little to change the challenging headwinds Star is facing,” said Brad Smoling, managing director at Smoling Stockbroking.
McCann, who has also held senior executive roles at real estate firm Lendlease, will receive an annual salary of A$2.5 million, along with a sign-on bonus of the same amount, and additional performance-based provisions, according to Star.
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