Star nabs Cooke as CEO
SHARES in Star Entertainment rallied more than 3 per cent on Wednesday after the embattled casino group announced the appointment of former Tyro Payments boss Robbie Cooke as its new CEO.
Mr Cooke is the first new executive appointed to Star after an exodus of its senior management and board, following explosive revelations at a royal commission-style review into its fitness to hold a NSW casino licence.
Counsel assisting the inquiry headed by Adam Bell SC have recommended that Star is no longer suitable to hold a licence, while the company’s lawyers argue that the executive clean-out – which includes former executive chairman John O’neill – proves it is reforming its operations and should be able to retain its licence.
Mr Cooke replaces Matt Bekier, who resigned days into the inquiry in March. Interim chairman Ben Heap said Mr Cooke’s appointment followed a comprehensive global search. His appointment remains subject to regulatory approvals.
Mr Cooke – who also led online accommodation booking site Wotif from 2006 to 2013 – faces a significant task, rebuilding what the Bell review heard was a “toxic” culture within its international business. Mr Heap said Mr Cooke was “well placed” to “restore confidence” in Star.
“Robbie is a trusted, respected and highly experienced chief executive,” he said. “He has been the CEO of major ASX 200 listed companies and brings extensive commercial experience in operating and driving transformation programs within highly regulated environments.”
Mr Heap highlighted Mr Cooke’s performance as CEO of the former Tatts Group’s lotteries, wagering and gaming division, as well as at Tyro, where he steered the company through the financial services royal commission.
“As CEO of the lotteries, wagering and gaming operation at Tatts Group, he led a comprehensive transformation program and secured valuable licence agreements with various state governments,” he said.
Star shares rose 3.3 per cent to $2.80, while Tyro, where Mr Cooke was CEO for almost five years, slumped 16.7 per cent to 65c.
Mr Cooke, who has given six months notice at Tyro, said he was delighted to have the opportunity to re-join the gaming and hospitality industry. “There are challenges for The Star that have been well documented. They will be my priority and focus,” he said.
Mr Cooke will start at Star on an initial fixed remuneration of $1.6m. Depending on shareholder approval and performance hurdles, he will be eligible for $1.6m in performance share rights as a sign-on grant and potentially $2.56m in bonuses.