Former Suncorp boss David Foster to become Star’s third chair in under a year

Star Entertainment chairman Ben Heap says ‘the board has evolved in a timely but measured way over the past 12 months’ as he calls time on the troubled casino group.

Ben Heap will leave Star Entertainment on March 31. Picture: Joel Carrett

Ben Heap will quit Star Entertainment’s board at the end of next week to make way for former Suncorp Bank chief executive David Foster, who will succeed him as chairman of the beleaguered casino group.

Mr Heap announced his retirement as Star’s chairman and as a non-executive director on Wednesday – two days after the group pleaded guilty to breaking Queensland casino laws. His departure marks Star’s third chairman change in less than a year, after his predecessor John O’Neill quit last May.

He has previously been the only director at Star to declare he will stay on at the company, following last year’s boardroom exodus following an explosive royal commission-style inquiry, which led to the suspension of its NSW casino licence.

But last December, he indicated he would leave when “appropriate transition arrangements are in place” after the Australian Securities & Investments Commission said it would sue 11 current and former directors of Star, alleging they “failed to give sufficient focus to the risk of money laundering and criminal associations”.

Mr Heap’s departure completes Star’s board “renewal” after Katie Lahey – who said she would contest the ASIC lawsuit – left the company in December, following Mr Foster’s initial appointment as a director.

“The board has evolved in a timely but measured way over the past 12 months,” said Mr Heap, who will leave the company on March 31.

“In addition to our recently appointed managing director and chief executive Robbie Cooke, four experienced non-executive directors have joined the renewed board, with an additional director awaiting final regulatory approval.

“I have every confidence The Star will be a powerhouse of the Australian tourism and entertainment sectors for decades to come, employing thousands of people across stunning locations in Sydney, Brisbane and the Gold Coast.”

David Foster will be Star’s third chairman in less than a year.

About 20 senior executives have left Star in the past year, including former chief executive Matt Bekier, chief financial officer Harry Theodore, chief legal risk officer Paula Martin and the respective bosses of its NSW and Queensland casinos, Greg Hawkins and Geoff Hogg.

Last month, Star announced a writedown of $988m on its flagship Sydney casino after the NSW government announced proposed changes to lift the state’s casino tax rate.

As a result, Star completed a $800m raising from investors, including from pokies baron Bruce Mathieson, who has amassed a near 10 per cent stake after tipping in about $80m into the company.

It also secured another $80m from its joint venture partners Chow Tai Fook and Far East Consortium, despite their links to convicted junket boss Alvin Chau. Star has partnered with Chow Tai Fook and Far East Consortium on more than $5bn worth of developments, including Brisbane’s Queen’s Wharf and chief executive Robbie Cooke said he is yet to see evidence of untoward behaviour.

In September, Mr Heap conceded Star had been “arrogant” and “closed off to criticism” as he fought to regain its fitness to hold a NSW casino licence and vowed the company would change its habits.

“We need to fundamentally transform our culture. I accept that there have been times we’ve been arrogant and closed off to criticism,” Mr Heap said at the time.

“That will not be the case in the future.”

Star highlighted Mr Foster’s experience in the financial sector – which like casinos are subject to strict anti-money laundering and counter-terrorism financing laws – as being a qualified successor to Mr Heap.

Mr Foster led Suncorp through the 2008 financial crisis, delivering a turnaround and restructuring of the bank, before standing down in 2013. Suncorp is now subject to a $4.9bn proposed acquisition from ANZ.

Mr Foster paid tribute to Mr Heap, saying he had played a “pivotal role over what has been a challenging period”.

“He provided leadership and stability at a critical time, which included overseeing the appointment of our new chief executive, renewal of the board and a re-set of the balance sheet.

“These were important and fundamental steps that have now been completed as the company rebuilds towards an exciting new era. I am delighted to assume the role of chairman as we continue with an unwavering focus on earning back the trust of the community.”

Mr Foster currently holds various ASX-listed company directorships including Bendigo and Adelaide Bank, and G8 Education, the biggest listed childcare and early education operator.

Originally published as Former Suncorp boss David Foster to become Star’s third chair in under a year