On Sunday morning,Bekier and O’Neill had another long conversation and by lunch O’Neill received a three-line email containing Bekier’s resignation.
There was no argument. The board accepted it - perhaps thinking - “there but for the grace of god...”
Bekier understood well the rules of the chain of command. Regardless of whether he was personally complicit in any of Star’s misconduct,Bekier was accountable.
“Bekier informed the board that as managing director and CEO he is accountable for the effectiveness and adequacy of the company’s processes,policies,people and culture.”
Finding an outsider will take time,and it will require a hefty financial incentive for an experienced executive who is willing to take on the task of overhauling the casino group.
Some issues uncovered did not contain Bekier’s fingerprints.
To date neither the board nor Bekier have been implicated in Star allowing the use of China Union Cards for gambling.
But Star prematurely declaring it had severed an agreement to supply the notorious Chinese “junket” operator Suncity with a dedicated gaming salon did appear to leave him exposed - or at least at odds with public comments he had made.
Bekier will presumably get his opportunity to give evidence on what he did and didn’t know in the coming weeks.
His brand also took a beating last week in evidence from two KPMG consultants and Star’s former chief risk officer executive,Paul Williams,that Bekier had been angry about a report from the consultants that was critical of Star’s anti-money laundering processes.
However,the inquiry also heard that the recommendations from the report were ultimately accepted and implemented.
The Star now faces the dilemma of replacing Bekier whose executive duties will be transitioned in an “orderly manner”,according to the company.
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It will have the challenge of finding existing management considered sufficiently clean skin to take on those responsibilities until a new chief executive can be appointed. Finding an outsider will take time,and it will require a hefty financial incentive for an experienced executive who is willing to take on the task of overhauling the casino group.
Crown found such an executive in former Lend Lease boss Steve McCann - whose generous remuneration and $5 million kicker in the event the company was taken over was sufficient to lure him to accept the challenge.
Crown,whose largest shareholder,Packer,was put on notice that he would be required to sell down his stake within three years,has since been the subject of a takeover offer from Blackstone that looks likely to succeed.
Star Entertainment also appears vulnerable to a takeover offer while it is in a state of flux,without a chief executive and with a number of executives and a board under the review’s microscope.
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