James Packer gives up Crown chair, will draw ‘$10m’ salary

James Packer plans to take a salary for the first time from his listed gaming company Crown Resorts.

‘I will earn every cent the board decides­ to pay me’: James Packer.

James Packer plans to take a salary for the first time from his listed gaming company Crown Resorts after relinquishing the chairman’s role and declaring he was over his private company “subsidising’’ the listed gaming group.

In a move that reflects Mr Packer’s decision to spend far less time in Australia in the future, the billionaire revealed yesterday that he would become a senior executive director at Crown, focusing on the company’s global ambitions.

The chairman’s role will go to former Deutsche Bank senior executive Robert Rankin, the head of Mr Packer’s private company, Consolidated Press Holdings.

While Crown said Mr Packer’s remuneration arrangements were still being negotiated, it is understood he could earn a salary of about $10 million a year.

Executives at CPH on the Crown board could also have their salaries adjusted to earn a further $10m to account for the work they do for the gaming group. CPH owns 50.1 per cent of Crown.

A sub-committee of the Crown board, headed by former Qantas chief Geoff Dixon and including advertising expert Harold Mitchell, is seeking independent external advice on Mr Packer’s package, which must be ­approved by Crown’s shareholders.

“I was made CEO of Publishing and Broadcasting (the former name of the Packer family’s media and gaming group) 20 years ago and am proud to have never taken a salary,’’ Mr Packer told The Australian from Europe yesterday.

“I have increased my stake in Crown since my dad’s passing from 37 per cent to a majority shareholding. I think times have changed and I shouldn’t be subsidising Crown. I am very confident I will earn every cent the board decides­ to pay me.’’

He said he, Mr Rankin and CPH executive director Michael Johnston spent a majority of their time working on Crown business.

In his new role, Mr Packer will remain focused on the company’s flagship Sydney property, its Alon development on the Las Vegas strip, and on driving Crown’s online­ gaming strategy.

“I am very proud of what we’ve achieved so far at Crown and I am going to try my hardest to help the company grow from strength to strength,’’ he said, noting that Crown was investing more in Australia than ever before.

He said Crown Sydney “remained his No 1 business priority’’ and Crown was one of the nation­’s biggest taxpayers as a percentage of profits.

“In a world where Australia today is running massive deficits, it is a joke companies like Trans­urban and Sydney Airport, who are real monopolies and have margin­s of above 80 per cent, are paying no tax,’’ he said.

“Let alone Apple, Google, Microsoft, Facebook.’’

Trans­urban and Sydney Airport say they pay correct levels of tax.

Mr Packer has spent less time in Australia over the past 18 months, basing himself in Los Angeles, where his children live with his former wife, Erica. The couple sold their Sydney home last week for a record price, and Mr Packer has unsuccessfully tried to sell his Bondi apartment. He has reportedly formed a relationship with US singer Mariah Carey.

Crown announced plans yesterday to buy half of the Packer family’s Ellerston property in the NSW Hunter Valley for $60m. The deal does not include the agricultural portion of Ellerston, which houses the grave of Mr Packer’s father, Kerry.

Mr Packer’s most trusted advise­r, Matthew Grounds, said yesterday’s announcement was “more incremental than anything too substantive … Nothing has changed in the sense James still has the 50 per cent holding in Crown. All of his focus will be on driving Crown’s capital allocation decisions. That is a win-win for shareholders.’’