C
rown shareholders are again rebelling against the casino operator: nearly 31% of proxy votes were cast against the company’s remuneration report before its annual general meeting on Thursday, following millionaire payments to executives who have left the troubled group.
It’s the second straight year that votes against have exceeded the 25% threshold needed to register a “strike” against Crown, reports The Guardian. During the 2021 financial year, the Australian casino giant paid more than $20 million to executives leaving the company.
While acting chair Jane Halton defended the payments, claiming they were required under longstanding contracts, she said the board was in the process of overhauling its executive pay regime, following discussions with shareholders and proxy advisers. “People were looking for an explanation of these termination payments,” Halton stated.
The voting outcome reflected the troubled situation of the company after having been embroiled in two years of scandal and public inquiries. Most of Crown’s leadership has been replaced over the past year as a form of commitment to repair for social damages.
“Under the leadership of our significantly renewed board and senior management team, Crown is well placed to continue the momentum of change,” added Halton, while noting that 10 of the 11 directors at the previous annual meeting had left.
Shareholders now decided to spare Crown’s current board by turning down a follow-up option to oust it entirely, reports Reuters. Since it was the second year of a vote against, Australian company law entitled shareholders to hold a subsequent vote on whether to fire the entire board. That vote failed, with 96% voting against the “spill” motion.
During the meeting, Halton refused to allow questions to be put to Ziggy Switkowski, who is set to replace her as chair. Switkowski was to be put up for election at the meeting, but this is facing a delay as he has yet to receive approval from gambling regulators.
The company has faced allegations throughout the last two years of having facilitated money laundering at its Melbourne and Perth casinos, as well as allowing junket operators to bring high-rolling customers with links to organized crime.
Of Crown’s three casinos, its newest, in Sydney, had its gambling license suspended just before its opening in December 2020, following an inquiry. A further two inquiries have been launched in the other casinos. The Victorian government is expected to say by the end of this month whether Crown can keep operating its Melbourne resort. The Perth inquiry is ongoing.
Original article: https://www.yogonet.com/international//noticias/2021/10/21/59857-crown-shareholders-vote-against-executive-pay-plans-spare-board-from-ousting-option
