Dec 16 (Reuters) - Embattled casino operator Star Entertainment said on Tuesday that Steve McCann, the group's chief executive officer and managing director, will be leaving the company effective immediately.
Shares of Star were up as much as 4.8% to A$0.11 by 2329 GMT.
McCann will be leaving Star after steering the company through more than 17 months of turmoil following his July 2024 appointment during an ongoing financial crisis.
At the time, McCann was expected to navigate the firm out of a second inquiry into the firm's suitability to manage its Sydney casino operations while working with a new management team following a slew of high-level departures.
Star's board, in its fiscal 2025 report, defended CEO Steve McCann's unconventional, cash-based short-term incentive as a temporary crisis-era measure, citing his early impact — including securing Bally's as a strategic investor — and said pay will revert to a standard structure from fiscal 2027.
A search for a permanent CEO will be conducted, the company added, while McCann will remain with the firm to assist through a handover period in relation to government and regulator interaction until July 8, 2026.
"Steve joined at a time of crisis for The Star and has helped to deliver a critical financial reset for the business and successfully progressed our Remediation Plan, which have laid the foundations for The Star's long-term future success," said Chairman Bruce Mathieson Jr., who will take on an expanded role as executive chairman.
Earlier this month, Mathieson Jr. was elected as Star's chairman, cementing the billionaire Mathieson family's grip on the embattled casino firm after the family and U.S. gaming group Bally's converted their rescue loans into equity.
The U.S. company now controls about 38% of Star Entertainment while the Mathieson family has a 23% interest.
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Alan Barona)
