- Crown Resorts’ (CWN) annual meeting on Thursday saw strong disapproval from its shareholders
- 34 per cent voted against its latest remuneration report, slapping a first strike against its board of directors
- In avoiding a bigger spill, James Packers’ 36 per cent voting power was a saving grace from some
- However, board changes still took place
- Two directors chose to step down, with another choosing to stay after some consideration
- Shares in Crown Resorts gained 2.03 per cent throughout Thursday trade, closing at $8.55 apiece
A large number of Crown Resorts (CWN) shareholders have voiced disapproval over the pay of its executives after a general meeting on Thursday.
Ongoing investigations over money laundering at the casino group’s Melbourne location continue to prove a negative force for the company.
Recently, Chair Helen Coonan admitted to knowledge of the alleged money laundering taking place.
First strike from remuneration report
After Crown released its latest remuneration report, 34 per cent of shareholders voted against it — placing it over the 25 per cent threshold for a first strike.
A major saving grace came to the rescue of the executives, with an alliance from James Packers’ 36 per cent voting power.
In spite of the ongoing probes into Crown’s misconduct, both the Crown Chair and Chief Executive Ken Barton were apologetic to shareholders.
Helen Coonan was blunt in making reference to Crown Resorts’ negative performance throughout the ongoing inquiries.
“Let me say clearly that I unreservedly apologise for these failings,” Coonan said.
“As a board, we will take all the steps necessary to make sure we learn from these mistakes,” she continued.
“We acknowledge we have more to do to meet this objective, and over the past year, the board has actively pursued a range of improvements. Having a gaming licence is a privilege that we as an organisation do not take for granted,” Helen explained.
Helen also spoke of the group’s relationship with ‘junkets’ — the travelling high rollers that landed the Casino in hot water.
“We have suspended relationships with all junket operators until June next year, and this will allow us sufficient time to consult widely and carefully consider the threshold question of whether we will recommence such relationships in the future,” she explained.
“Should we decide to work with junkets again, we will only do so after extensive consultation with regulators regarding significantly enhanced due diligence processes,” the Chair stated.
Director changes
Although a major leadership spill was avoided, some positions on the board underwent change on Thursday.
Director John Alexander chose to exit his position, officially leaving in January next year.
Another director, John Horvath, recognised James Packer’s votes as his saving grace. He then decided to step down to better reflect the voice of the shareholders.
Director Jane Halton also considered stepping down, but ultimately chose to stay.
Despite an onslaught of negative news, Crown Resorts continues to trade in the green on the Australian market.
On Thursday, it closed at $8.55 per share after a 2.03 per cent increase.