Crown resorts to name change bid

James Packer's gaming company Crown Limited wants to rebrand itself as Crown Resorts Limited in an effort to become better known as a high-end tourism operator.

By InvestSMART · 27 Sep 2013

By InvestSMART ·
27 Sep 2013

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James Packer's gaming company Crown Limited wants to rebrand itself as Crown Resorts Limited in an effort to become better known as a high-end tourism operator.

Crown has advised shareholders in a notice of meeting that it will seek their approval next month to change its name to Crown Resorts, to take into account its "expanded portfolio of integrated resort assets".

In Crown's annual report, Mr Packer said the name change was timely given its large investments in the past few years in tourism infrastructure, and its expanding domestic and international investments.

Crown has casinos in Melbourne and Perth, and owns a third of Asian gaming joint venture Melco Crown.

Mr Packer received NSW cabinet approval three months ago to move to the final assessment stage for a six-star hotel and VIP casino at Sydney's Barangaroo harbour-front development.

Crown also wants to build a casino in Sri Lanka's capital, Colombo.

The annual report reveals that Crown chief executive Rowen Craigie received almost $5 million last financial year, down from almost $6.9 million in 2011-12. The drop reflects a reduction in his long-term share incentives from just over $3 million to $1.19 million.

Greg Hawkins, who stepped down as Crown Melbourne CEO last month, received a total package of $1.34 million this year, down from $1.82 million previously. Crown said Mr Hawkins was not entitled to a long-term bonus.

Mr Hawkins has been replaced by former Crown Perth CEO Barry Felstead, who has taken on an expanded role of chief executive of the company's Australian resorts.

The pay for Crown's other top executives also fell.

Crown suffered a shareholder backlash against its remuneration report in 2011 because of a lack of detail around the hurdles for its long-term incentive plan for its executives. But the likelihood of that happening again this year seems low given that the hurdles appear high.

Crown will seek shareholder approval for the name change at its annual meeting on October 30 in Melbourne.

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Frequently Asked Questions about this Article…

What name change is Crown Limited proposing and why is it important for investors?

Crown Limited is seeking shareholder approval to change its name to Crown Resorts Limited. The company says the rebrand reflects its expanded portfolio of integrated resort assets and its strategy to be better known as a high‑end tourism operator, which could signal a broader focus beyond gaming to investors.

When will shareholders vote on Crown's proposed name change to Crown Resorts?

Crown will seek shareholder approval for the name change at its annual meeting on October 30 in Melbourne, according to the company's notice of meeting.

What major assets and projects does Crown own or plan that everyday investors should know about?

Crown owns casinos in Melbourne and Perth and holds a one‑third stake in the Asian joint venture Melco Crown. The company has received NSW cabinet approval to move to final assessment for a six‑star hotel and VIP casino at Sydney’s Barangaroo, and it also plans to build a casino in Colombo, Sri Lanka.

How has Crown's executive pay changed recently and what does that mean for shareholders?

Crown's annual report shows CEO Rowen Craigie received almost $5 million in the last financial year, down from almost $6.9 million in 2011–12, largely due to a fall in long‑term share incentives from just over $3 million to $1.19 million. Other senior executives, including Greg Hawkins, also saw reduced packages. For shareholders this suggests a tightening of long‑term incentives and potentially stronger performance hurdles.

Who are the key executives mentioned in Crown's report and were there any recent leadership changes?

Rowen Craigie is Crown's chief executive. Greg Hawkins stepped down as Crown Melbourne CEO and received $1.34 million this year; he was replaced by Barry Felstead (former Crown Perth CEO), who now serves as chief executive of the company’s Australian resorts.

What was the shareholder backlash over Crown's remuneration report in 2011 and is it likely to happen again?

In 2011 shareholders pushed back against Crown’s remuneration report because it lacked detail on the hurdles for its long‑term incentive plan. The annual report suggests the hurdles now appear higher, which the company says makes a repeat shareholder backlash unlikely.

How does Crown's stake in Melco Crown affect its international exposure?

Crown owns one‑third of the Asian gaming joint venture Melco Crown, which gives the company significant international exposure in Asia and complements its domestic resorts in Melbourne and Perth.

Will the proposed rebrand to Crown Resorts change the company's business focus?

Crown says the name change is intended to better reflect its expanded investments in tourism infrastructure and its growing domestic and international resort portfolio. The rebrand signals an emphasis on being recognised as a high‑end tourism and integrated resorts operator rather than a change in core business activities outlined in the report.