Star Sydney CEO, transformation boss Scott Wharton quits eight months after taking the job

Scott Wharton – the executive charged with heading Star Entertainment’s transformation – has quit the troubled company to lead salary packaging firm Smartgroup.

Scott Wharton is the latest executive to exit Star Entertainment, with his tenure among the most short-lived at eight months.

Star Entertainment’s boss of its flagship Sydney operations and executive in charge of the troubled group’s transformation, Scott Wharton, has quit the company amid a showdown with the NSW government over casino tax hikes.

Mr Wharton, who was appointed in July last year, shocked the market when he said on Monday that he would leave Star to head ASX-listed salary packaging company Smartgroup.

Star Entertainment said it was “well positioned” to announce a successor to Mr Wharton – which would be the third executive to head its Pyrmont casino in less than 12 months. Meanwhile, Star’s general manager of transformation Nicola Burke has been promoted to the chief transformation officer’s role.

Mr Wharton’s departure comes at a critical juncture for Star after it announced a writedown of $988m on its Sydney gaming complex in February as a direct result of former NSW Treasurer Matt Kean’s proposal to lift the state’s casino tax rate.

Star chief executive Robbie Cooke thanked Mr Wharton for his “valuable contribution, particularly in respect of our remediation actions”.

“We are committed to winning back trust and confidence from the community and the work Scott has led since his appointment last July has laid incredibly important foundations,” Mr Cooke said.

Mr Wharton replaced Star’s former NSW boss Greg Hawkins who left the group amid a disastrous appearance at a royal commission-style inquiry last year.

Mr Hawkins was accused of misleading the NSW Bergin Inquiry into Crown Resorts about illegal Chinese cash transactions at an exclusive gaming salon used by Chinese junket operator, SunCity, at Star’s Pyrmont casino.

Mr Hawkins told the Bergin inquiry in August 2020 that Suncity would not be able to exchange cash for chips at the gaming salon, known as Salon 95, given such a move would have breached anti-money laundering and casino law.

But Mr Hawkins later revealed at a separate inquiry headed by Adam Bell SC that he was aware that Suncity was effectively illegally operating a casino within a casino at Pyrmont and he issued the group with not one, but two warning notices about such behaviour.

Mr Hawkins’s actions triggered a rebuke from former Star chief executive Matt Bekier, who called for a “full revamp” of the company’s leadership.

“I’m disappointed in Salon 95. (Mr Hawkins) raised the risk with me on that; I thought the issues have been resolved. And I represented to the board and outside investors that the things that we learned about Crown would never happen,” Mr Bekier said.

“If the board of directors had known any of these things, they would have supported me in shutting down that business a long time ago.”

Mr Cooke said Star’s management still had a “lot of work ahead” after it was declared unfit to hold casino licences in NSW and Queensland.

“But the board and the management team have an unwavering focus on proving our suitability to hold casino licenses in NSW and Queensland,” he said.

About 20 senior executives have left Star in the past year, including chief financial officer Harry Theodore, chief legal risk officer Paula Martin and Queensland casino boss Geoff Hogg. Chairman Ben Heap also stepped down last month to make way for former Suncorp Bank chief executive David Foster.

Mr Wharton thanked Mr Cooke and Star’s board for their support. “It has been hugely rewarding to contribute alongside so many committed, hardworking leaders and team members,” he said, adding his new role at Smartgroup will help ease cost of living pressures on Australians.

“I am excited to lead Smartgroup and build on its success. Smartgroup can play a growing role as Australian consumers face increasing cost of living pressures, providing seamless salary packaging and car leasing services.

“Smartgroup’s established capabilities in areas like payroll, workforce optimisation and fleet management position the company to play a bigger role in helping clients transform their businesses.”

He will be paid a fixed salary of $850,000 plus a sign-on bonus of $150,000, taking his first year base pay to $1m. Mr Wharton can also boost his salary by up to 65 per cent under the group’s short-term bonus scheme, which is paid in a 50/50 cash, share split.

Smartgroup’s board has also agreed to grant Mr Wharton $1.1m worth of shares under its long-term incentive scheme.

He said Smartgroup has an “impressive focus on customer service and has made good progress in streamlining and digitising operations”.

“This has created a loyal client base and strong foundations for further innovation and growth. I am committed to working with the Smartgroup team to deliver sustainable and growing returns for our shareholders by ensuring the resilience of current operations, lifting performance, and accelerating digitisation and innovation.”

He will begin his role at Smartgroup on July 17. His appointment comes six weeks after current chief executive Tim Looi announced his intention to retire after 14 years’ service.

Smartgroup chair Michael Carapiet said: “We are very pleased to have secured the services of an exceptional and highly credentialed executive in Scott, with his experience in operational and transformation roles within financial services organisations”.

“Scott will bring a strong track record of driving performance and change to lead Smartgroup and realise the significant growth potential in our business,” Mr Carapiet said.