Lendlease’s McCann has ‘insider’ experience with Crown
Steve McCann joins Crown after his firm Lendlease built its Sydney casino and faces a big payday if Crown is acquired.
Lendlease boss Steve McCann is joining Crown Resorts as chief executive at a crucial juncture, as it weighs up multiple takeover proposals.
The Sydney-based former investment banker brings well-honed skills in corporate manoeuvres as the company’s Helen Coonan-led board seeks to get the best outcome for battered Crown shareholders.
Mr McCann, who has just signed on with a $2.5m annual pay package and further incentives including up to a $5.6m payout if there’s change of control, is anything but a straitlaced former banker.
He comes with a crucial advantage as Lendlease built the casino company’s showpiece – the $2.2bn Crown Sydney casino, hotel and apartment complex – and then teamed with Crown in a crucial court case that helped protect views from their developments.
The construction boss also dealt with tycoon James Packer as the casino was being built, giving him some insights into how to handle Crown’s 37 per cent shareholder.
As well as taking the Lendlease operation truly global and planting it in major cities around the world with a $110bn pipeline of work, he is also a keen horse owner and punter, and counts being a bookmaker’s clerk as his university job.
The ex-ABN Amro banker was at Lendlease for 16 years, the last 13 as chief executive, and steered the company through both the global financial crisis and the more recent coronavirus crisis.
Mr McCann was appointed Lendlease chief in December 2008 after joining the company in 2005. He was made Lendlease finance director in March 2007 and was chief executive of Lendlease’s investment management business from 2005.
Before that he held senior capital markets roles at ABN Amro and was head of property at Bankers Trust, which will help him bring the value of the Crown’s $4bn real estate to the fore.
Previous roles included four years as a mergers and acquisitions lawyer at Freehills and four years in taxation accounting, which should also aid in negotiations.
During his time at the helm, Lendlease bulked up in Australia, Europe and United States and became a focused urban regeneration machine, taking on precinct-size projects in large cities.
It built up a huge pipeline and although shareholders were tapped for a rescue equity raising the company has flagged that it plans to double annual production in the wake of the pandemic and become a funds giant.
Lendlease has also ridden the cycle with its luxury residential projects coming up trumps and it is building its exposure to growth regions, including Asia, and was among the final bidders for Blackstone’s $3.8bn Milestone Logistics portfolio with a major US backer.
But there have been missteps, including a costly foray into engineering, with Lendlease hit by blowouts on projects like the Melbourne Metro Tunnel.
Mr McCann stayed around for the clean-up and sold off the underperforming engineering division. Lendlease’s development arm has since begun huge international projects including building a new city-size precinct for Google in the San Francisco Bay area.
Mr McCann last year delayed his planned retirement from Lendlease to lead the group’s response to the COVID-19 pandemic. He will join Crown immediately after his term at Lendlease concludes at the end of May, subject to normal probity and regulatory approvals.
“Steve is a first-class appointment for Crown and the right person to embed the ongoing reforms necessary to restore regulatory and public confidence in our operations,” Crown executive chairman Ms Coonan said.
“Recognised as one of Australia’s most respected business leaders, Steve has a unique blend of strategic, financial and corporate governance expertise and a track record of building strong employee engagement and driving cultural change. During a comprehensive recruitment process,” she said.
Mr McCann said he was “looking forward” to joining Crown “at a crucial time for the organisation and see a real opportunity to help drive significant shareholder value as the company addresses its challenges and emerges from the constraints of the pandemic”.
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