Investor anger at Crown’s directors

CROWN Resorts has been hit with a first strike against its executive pay report while angry shareholders have also lodged major protest votes against directors standing for re-election.

About 34 per cent of shareholders voted against the casino giant’s remuneration report, easily surpassing the 25 per cent threshold needed to register a so-called first strike.

The strike was delivered as James Packer, who has a 36 per cent shareholding, abstained from voting on the report.

The shareholder revolt follows Crown being rocked over the past year by allegations that some of its junket partners have links to Asian organised crime gangs and its casinos have been used to launder money.

Crown has been forced to admit serious governance breaches at a New South Wales inquiry into whether it should be allowed to operate a casino in that state, while the financial crimes watchdog has also begun investigating potential money laundering.

Three Crown directors up for re-election at Thursday’s annual meeting — former senior public servant Jane Halton, former chief medical officer John Horvath and James Packer nominee Guy Jalland — all attracted protest votes.

Mr Jalland, who is the chief of Mr Packer’s private investment vehicle, Consolidated Press Holdings, attracted the biggest protest vote of 41.4 per cent.

Mr Horvath, who was Kerry Packer’s doctor, netted a no vote of 31.3 per cent.

The duo only survived because Mr Packer voted in their favour.

But after the vote, Mr Horvath announced he would resign given he had only maintained his position because of Mr Packer’s support.

Ms Halton attracted a no vote of 24.8 per cent, meaning she did not need Mr Packer’s votes to maintain her position.

She said she had considered standing down but felt “on balance” she had enough shareholder support to continue.

Mr Jalland acknowledged “the significant and serious protest vote” against the board and himself in particular.

“I, like my colleagues, are doing everything I can at the Crown board to have the company do better,” he said.

Mr Jalland said Consolidated Press Holdings felt it was appropriate to abstain from voting on the remuneration report and denied it was a tactic to engineer a board spill.

Crown only avoided a strike at last year’s annual meeting because Mr Packer voted in favour of the report.

If Crown receives another strike next year, shareholders then have the option of voting to spill all board positions.