Shareholders of Crown Resort Disapprove Executive Pay Plan

Shareholders of Crown Resort Disapprove Executive Pay Plan

The shareholders of the company have voiced their disapproval and have rejected the remuneration report of the embattled company. The disapproval and rejection of the plan laid before they took place on Thursday in the AGM that was conducted virtually.

What was contained in the plan?

The company has paid more than $20 million i.e. US $15 million to the directors who have left the organization in the financial year of 2021. Out of this amount, A $ 9.6 million i.e. $7 million was paid as part of severance packages.

The discontent was voiced over the huge payouts that would be given to executives who haven’t performed to the satisfaction of the shareholders. The opinion amongst the shareholders is that a number of these executives have left the company under a cloud.

A number of directors were recommended to be let go because of a damning report that was published following a lengthy investigation that was conducted by the authorities in the state of New South Wales (NSW). The result of the investigation was that the company lost its license with respect to the Sydney Casino.

Patricia Bergin, Former Supreme Court Judge in New South Wales (NSW) has reached the conclusion that the blame for the problems at the company was due to “poor corporate governance, deficient risk-management structures and processes, and a poor corporate culture” She has stated the directors were responsible for overseeing the affairs of a company that was guilty of “facilitating money laundering, exposing staff to the risk of detention in a foreign jurisdiction, and pursuing commercial relationships with individuals”

The threshold for the rejection was 25%. However, the threshold was surpassed with almost 31% of the shareholders rejecting the proposal. This has happened for the second consecutive year.

Impact of the rejection

Rejection of the proposal for the second consecutive year has the effect of automatically triggering the motion to gut the board. This is essence is akin to a no-confidence vote in the management of the company.

sherlock

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.