Roshan Thomas
(Reuters) – Australia’s Star Entertainment has appointed Steve McCann as its group CEO and managing director in a bid to lead the embattled casino operator out of a regulator’s probe into its Sydney operations that has sparked an executive exodus in recent months.
The casino operator said Wednesday that McCann, formerly an executive at Australian casino company Crown Resorts, now owned by Blackstone (NYSE:), will join the firm on July 8.
Star said McCann was expected to help the firm avoid a re-investigation into the firm’s suitability to run Sydney casino operations while working with a new management team after a slew of high-level departures.
Shares in the casino operator were trading 2.2% higher as of 0239 GMT. They were up 3.2% earlier in the day.
“I look forward to joining The Star at this critical time,” McCann said in a statement.
“I recognize that the company faces many complex issues and challenges.”
His appointment follows the departures of former chief executive Robbie Cook and chief financial officer Christina Katsibuba in March this year and almost two years after the resignation of long-time executive Matt Bekier amid investigations into Star for breaches of anti-money laundering and anti-terrorism laws.
“Changing the CEO will do little to change the complex headwinds Star faces,” said Brad Smoling, managing director of Smoling Stockbroking.
McCann, who also held senior management positions at property firm Lendlease, will receive A$2.5 million annually and a bonus of A$2.5 million, among other provisions such as performance rights, Star said.