ASA seeks to block McCann board job
STEVE McCann is facing opposition in his first high-profile job since leaving Crown Resorts last year, with the Australian Shareholders Association seeking to block his bid to join the board of Westfield shopping centre owner, Scentre Group.
Australian Shareholders Association CEO Rachel Waterhouse said Mr McCann’s resume – which included a 12year stint running Lendlease – was not strong enough to seat him on Scentre’s board and accused the company’s directors of overseeing an “erosion” of investor value.
“We believe board decisions would benefit from a new director, with hands-on retail, digital or marketing expertise, and are disappointed with the appointment of Steve McCann who doesn‘t fit this bill. We will vote against his election,” Ms Waterhouse said in a letter to shareholders.
“The main issue for ASA is board renewal. Shareholder value has been eroded over many years, other than the obvious effect of Covid-19.
“The company has two key directors that have held their position beyond the 12 years we consider to impinge on independence, despite the company’s protestation. Yes, the company came into being in 2014, but these directors have held the role of director of one part or another of the listed companies related to Westfield since 2009 and 2010. Neither of them is up for re-election.”
Mr McCann stepped down as Crown Resorts chief executive – activating a $9m payout clause in his employment contract – last July after Blackstone finalised its $8.9bn takeover of the casino group formerly controlled by James Packer.
After joining Crown in 2021, following the departure of Ken Barton after the scathing NSW Bergin inquiry into the group, Mr McCann had three priorities: ensure the company regained its suitability to hold a casino licence, bed down its reformation so that its new $2.2bn Barangaroo site could fully open and solve the question mark over its ownership. He completed those three objectives.
Scentre will hold its annual meeting on April 5.
Ms Waterhouse criticised the company opting to hold a physical meeting with a webcast. “(This) is disappointing – so many other companies can manage our preferred hybrid meeting,” she said.
Ms Waterhouse said the Australian Shareholders Association would support the company’s remuneration report after it voted against it at last year’s meeting.
In 2022, Scentre’s board received a first strike on its remuneration report after its board made one-off equity based retention payments the previous year to top executives including former chief executive Peter Allen who received close to a sizeable $2.9m.
A second strike could trigger a board spill, but Ms Waterhouse said the company had listened to the ASA’s concerns.