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Three top executives at casino operator SkyCity unexpectedly resigned, including the company’s chief executive, Graeme Stephens.
In a statement sent to the New Zealand Stock Exchange on Monday morning, SkyCity said Stephens, 57, would be “retiring” as of November 30.
Chief Operating Officer Michael Ahearne will take over as CEO immediately.
Chief Financial Officer Rob Hamilton has resigned and will step down on February 26 “to seek new opportunities.” He has been with the company since 2014.
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Chief Marketing Officer Liza McNally, who was appointed in January 2018, also resigned and will step down on March 31.
An investor presentation attached to the NZX announcement said McNally would be moving to Adelaide with his family.
Lawrence Smith / Stuff
Graeme Stephens took over as CEO of SkyCity in May 2017.
Stephens’s departure did not require a lengthy transition “due to the perfect internal succession that had been planned,” the addendum reads.
SkyCity held a conference call for analysts, institutional investors and fund managers at noon on Monday to discuss the leadership changes.
The announcement surprised analysts Things spoke on Monday morning, they were busy preparing for the noon call.
Hamilton Hindin Greene director Grant Williamson said it was unusual for a company to make such sudden and radical changes in top management.
“It’s probably a little unusual to see so many changes all relatively together,” Williamson said.
He said that until he had more information, it was difficult to know what was behind the changes.
“Obviously, these are quite significant changes in the management of the company.”
He said it was possible that the new management could bring a new perspective and new direction to the company.
Shares of SkyCity fell 11 cents after the announcement, trading at $ 3.04 in the afternoon.
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SkyCity President Rob Campbell says Stephens has done a good job during his time with the company.
On the conference call, SkyCity President Rob Campbell said that when Stephens was named CEO in 2017, he indicated that he would be in the position for four to five years.
“We have always worked with that point of view.”
During the year there were talks about when Stephens wanted to retire and a search for internal candidates began, identifying Ahearne as the most suitable successor, he said.
Ahearne’s leadership, capabilities and experience was “just what SkyCity needs right now,” said Campbell.
Campbell said the resignations may seem like a sudden announcement, but they are consistent with “what we have to deal with” within the company, he said.
“While it is a rapid change, from a board’s point of view, it is very much about stability.”
Stephens, who did not speak on the call, would not be leaving the company for another position, Campbell said.
When asked about the long-term incentives Ahearne would receive, Campbell did not elaborate, but said it would be more “conservatively constructed” than past CEO salaries, he said.
In 2019, Stephens earned $ 3.92 million. That year it was reduced to $ 2.5 million in total compensation.
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SkyCity’s new CEO Michael Ahearne says he already has a good understanding of the business.
When asked if a strategic review would take place under the new leadership, Ahearne said he would address that at a later date.
In the short term, he focused on SkyCity’s core business, including its customers and staff, as well as navigating Covid-19, he said.
An analyst noted that Stephens’ contract required a six-month notice for resignation.
When asked what rights Stephens would be paid upon exit, Campbell said he would be paid “in terms of his contractual rights.”
“That’s all I can say right now.”
To ensure “an orderly transition,” Stephens would support Ahearne during her remaining two weeks with the company.
During his time as CEO, Stephens had to steer the company through Covid-19 and, prior to that, a major fire that caused significant damage to the nearly completed New Zealand International Convention Center.
Ahearne joined SkyCity in December 2017 as Chief Operating Officer.
He oversaw operations at all five SkyCity properties in New Zealand and Australia and launched the SkyCity online casino in 2019.
He is a qualified accountant and has an MBA from the Sydney University of Technology.
SkyCity said its domestic business in New Zealand was performing well with earnings and cash flow “substantially above expectations” for the year to date.
In early September, SkyCity posted a $ 235 million after-tax profit, a 62 percent increase from the previous year, despite having to close its casinos due to Covid-19 restrictions.
However, its normalized profit after tax was reduced by 60 percent to $ 66 million, after taking into account the impact of the New Zealand International Convention Center fire, Covid-19 related adjustments and deterioration. 150 million Australian dollars (162 million New Zealand dollars) from SkyCity Adelaide. casino license.
It has suspended dividends, but expects them to resume at the end of fiscal 2021.
