On June 26, 2007, the business industry was not surprised about the abrupt departure of SkyCity’s top executive, which follows shareholder concerns that SkyCity is under performing beyond expectations.
Evan Davies has stepped down as the CEO of the company. The board of the top 10 organization calls it a mutual decision and Davies vehemently denies that he is being forced to resign from his position.
Board Director, Elmar Toime, will temporarily become the Executive Director of SkyCity until a new Managing Director is chosen. Business analyst, Rod Oram, said that the odds are against Davis, with the profits from the electronic gambling machines, table games and high rollers all posting negative results.
Davies will receive a $1.7 million payout after 11 years of working at the company. Mr. Oram questions whether this decision is good for the company.
He added that he is in favor of bonuses for a good performance but to have put in your contract such a large termination fee when you clearly have not been doing a good job simply is not right.
Mr. Oram said that Davies’ departure from SkyCity is another example of failed corporate management and whoever takes over the position left by Davies will have a difficult time.
He says that the new CEO will need to find a new way to rekindle the company’s gambling business, particularly in Auckland and change SkyCity’s balance sheet.
Mr. Oram believes that SkyCity should focus on fixing their Australian gambling casino operation and the company should carefully consider what assets they will have to keep and which ones they will need to let go.
16 July, 2007
