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Two directors announce plans to step down from Star board

Ben Blaschke by Ben Blaschke
Mon 16 May 2022 at 05:42
Star Entertainment Group falls to AU$95 million loss in FY20 but domestic gaming showing signs of recovery

The Star Sydney

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Australia’s Star Entertainment Group continues to follow the same path recently trodden by its local rival Crown Resorts with two directors announcing their intention to stand down from the Board.

According to an ASX announcement by the company on Friday following another damaging week of public hearings – part of a regular review into Star’s suitability to retain its casino license for The Star Sydney – non-executive directors Sally Pitkin and Gerard Bradley will both stand down in the coming months. Pitkin will step down “by the end of the financial year” and Bradley “in the coming months”, the announcement said, with other changes expected to occur in due course.

Having largely dodged scrutiny in recent years while Crown endured an inquiry in NSW, home to Crown Sydney, and Royal Commissions in Victoria and Western Australia, home to Crown Melbourne and Crown Perth, Star now finds itself treading a familiar path as it fights to save its reputation.

The company has already farewelled its Managing Director and CEO Matt Bekier, with Chairman John O’Neill stepping into the interim role of Executive Chairman, while senior executives Harry Theodore, Greg Hawkins and Paula Martin have tendered their resignations. Likewise, Crown saw 10 of its 11 directors depart in the space of six months from late 2020 while Helen Coonan also filled in as Executive Chairman following the resignation of CEO Ken Barton.

Recognizing the similarities, one source with knowledge of the matter recently told IAG, “It’s hard to see the current [Star] board remaining and I think they have made a mistake appointing John O’Neill.

“That looks a lot like Helen Coonan, which was not well received by the Victorian Royal Commission. I can’t believe Star hasn’t seen that.”

In Friday’s ASX filing, Star said it “notes the evidence in relation to Board renewal given in the public hearings in connection with the review of The Star Sydney being undertaken by Mr Adam Bell SC.

“As advised on 1 April 2022 in announcing the appointment of interim Executive Chairman John O’Neill AO, the Board acknowledged the need for accelerated Board change and would embark on a program of renewal in a timely manner. The Board is also mindful of the need for stability in this transitional period.”

Star said it is still awaiting regulatory approval for one board addition, having announced the appointment of Tourism Australia boss Michael Issenberg in February.

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Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

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