Crown Resorts shareholders reject exec exit payments

Crown Resorts shareholders have voted against the company’s remuneration report, opposing the casino operator for a second time.

Australia.- While Crown Resorts awaits the verdict of two Royal Commissions, its shareholders have shown their disagreement with the casino operator’s Executive Termination Payment Scheme for executives who have left the company.

Ahead of the annual general meeting of shareholders on October 21, nearly 31 per cent of proxies have voted against the company’s remuneration report. It’s the second consecutive year that Crown Resorts shareholders have opposed the casino giant, exceeding the 25 per cent threshold required to “strike” the operator.

According to The Guardian, the executives who have left Crown Resorts earned more than AU$20m in revenue in the 2021 fiscal year. Jane Halton, Crown’s interim chairman, said the payments were required under “longstanding contracts”.

She said the board of directors was overhauling the existing executive compensation system, recognising that company shareholders have been seeking an explanation for the termination fees paid by operators. 

Halton said Ziggy Switkowski, who is expected to succeed her as chairman of the board, would not be answering questions about severance pay, nor would new directors Bruce Carter and Nigel Morrison.