Star chairman takes the reins amid inquiry crisis
STAR Entertainment chairman John O’Neill will assume the company’s management responsibilities, following the resignation of chief executive Matt Bekier earlier this week amid explosive revelations at a royal commission-style inquiry.
In a move similar to bigger rival Crown Resorts, Mr O’Neill will become executive chairman on an interim basis, effectively immediately, the company announced on Friday. He will receive an extra $1.5m a year, or $125,000 a month, in remuneration, bringing his salary from the Star to more than $2m a year.
Former Crown Resorts chairwoman Helen Coonan also became executive chairwoman – bringing her pay to $2.5m at the time – when chief executive Ken Barton resigned following the release of the NSW Bergin report, which found Crown had facilitated money laundering and other organised crime.
Star’s move underscores how quickly the crisis engulfing the company is unfolding.
On Monday, it said while Mr Bekier would stand down immediately from the company’s board, he would keep his management position until a replacement was found to “transition his executive responsibilities in an orderly manner”.
Star said on Friday that Mr Bekier would now be “available in the short term to provide handover assistance as the board requests”.
“While the board considers it critical that the company has stability in this transitional period to a new managing director and CEO, it acknowledges the need for accelerated board change,” Star said. “As The Star continues to focus on its day to day business it is also committed to its more than 8000 team members after two years of Covid related shutdowns and restrictions. A review of The Star Sydney being undertaken by Mr Adam Bell SC is ongoing. The Star continues to co-operate fully.”
Revelations made during the inquiry have also sparked a shareholder class action. Star said it “intends to defend the proceedings”. “The allegations reference the ongoing ILGA inquiry and previous media reporting,” Star said this week.
It comes after the inquiry heard Mr Bekier slammed an independent KPMG report into Star – which found there were “fundamental deficiencies” in the group’s anti-money laundering program – at a hostile meeting in May 2018.
Announcing his resignation on Monday, Star said that Mr Bekier informed the board that as managing director and CEO he was accountable for the effectiveness and adequacy of the company’s processes, policies, people and culture.
Star shares closed 1c lower at $3.24 on Friday.