Top three execs quit SkyCity
Three top executives at Auckland’s casino operator SkyCity have unexpectedly quit, including the company’s chief executive Graeme Stephens.
In a statement to the New Zealand stock exchange on Monday morning, SkyCity said Stephens, 57, would “retire” effective from November 30.
Chief operating officer, Michael Ahearne, will take over the chief executive role immediately.
Robust report
Chief financial officer Rob Hamilton has resigned and will leave the role on February 26 “to pursue new opportunities”.
He has been with the company since
2014.
Chief marketing officer Liza McNally, who was appointed in January 2018, has also resigned and will leave the role on March 31.
Stephens’ departure did not require a lengthy transition “due to seamless internal succession which had been planned for”, the attachment said.
SkyCity held a teleconference call for analysts, institutional investors and fund managers at noon on Monday to discuss the leadership changes.
The announcement came as a surprise to analysts Stuff spoke to, who were busy preparing for the midday call.
Hamilton Hindin Greene director
Grant Williamson said it was unusual for a company to make such sudden and sweeping changes to senior management.
“It is probably a little bit unusual to see so many changes all relatively close together,” Williamson said.
He said until more information came to hand it was difficult to know what’s behind the changes. “It’s obviously pretty significant changes in the management of the company.”
He said it was possible new management may bring a fresh perspective and new direction for the company.
Shares drop
Shares in SkyCity were down 11 cents following the announcement, trading at $3.04 (FJ$4.40 ) in the afternoon.
SkyCity chairman Rob Campbell says Stephens has done a good job during his time in the company. On the conference call SkyCity chairman Rob Campbell said when Stephens was appointed chief executive in 2017, he indicated he would be in the role for four to five years. “We have always worked to that view.”
During the year conversations were had about when Stephens wanted to retire and a search for internal candidates began, with Ahearne being identified as the most suitable successor, he said. Ahearne’s leadership, capabilities and experience was “just what SkyCity needs at this point”, Campbell said.
Campbell said the resignations may seem like a sudden announcement, but they were consistent with “what we need to deal with” within the company, he said.
“While it’s a quick change, from the boards point of view, this is very much about stability.”
Stephens, who did not speak on the call, was not leaving the company for another role, Campbell said.
Asked about what long-term incentives Ahearne would receive, Campbell said it would be more “conservatively constructed” than previous chief executive salaries, he said.
In the 2019-year Stephens earned $3.92 million (FJ$5.68 m).
That fell to $2.5m (FJ$3.62 m) in total remuneration this year. SkyCity’s new chief executive Michael Ahearne says he already has a good understanding of the business.