By Roshan Thomas
(Reuters) – Australia’s Star Entertainment has appointed Steve McCann as group CEO and managing director to lead the embattled casino operator out of a regulator investigation into its Sydney operations that had led to a management exodus in recent months.
The embattled casino operator said on Wednesday that McCann, who was previously a top boss at Australian casino company Crown Resorts, now owned by Blackstone (NYSE:), will join the company on July 8.
Star said McCann is expected to guide the company out of a second probe into its suitability to manage its Sydney casino operations, while working with a new management team after a string of high-level departures.
The casino operator’s shares were trading 2.2% higher as of 0239 GMT. Earlier in the day they rose as much as 3.2%.
“I look forward to joining The Star at this critical time,” McCann said in a statement.
“I recognize that there are many complex issues and challenges that the company must address.”
His appointment follows the departure of former CEO Robbie Cooke and finance boss Christina Katsibouba in March this year, and almost two years after long-standing top boss Matt Bekier stepped down amid an investigation into Star over violations of laws against money laundering and counter-terrorism.
“A change in CEO will do very little to change the challenging headwinds Star is facing,” said Brad Smoling, managing director at Smoling Stockbroking.
McCann, who also held top positions at property firm Lendlease, will receive A$2.5 million annually and a sign-on bonus of A$2.5 million, in addition to other provisions such as performance rights, Star said.
