Crown (ASX:CWN) share price up despite Crown Melbourne CEO exiting

Crown Melbourne is set to have a new head as its CEO goes to the chopping block.

The Crown Resorts Ltd (ASX: CWN) share price is in the green despite the company announcing Crown Melbourne's CEO is leaving his role.

Xavier Walsh will step down from the top job at Crown Melbourne on 20 August.  He will continue to be available to the company until 9 December.

Right now, the Crown share price is $8.97, 0.45% higher that its previous closing price.

Let's take a closer look at the latest news from Crown.

a sad gambler slumps at a casino table with hands on head and a large pile of casino chips in the foreground.

Image source: Getty Images

Crown Melbourne CEO steps down

The Crown share price is gaining this morning following news Crown Melbourne's CEO will step down.

Walsh has held the top job at the Southbank casino since December 2020. Prior to his role as CEO of Crown Melbourne, he held various chief operating officer roles with Crown entities.

Crown stated it will appoint an interim CEO following consultation with the Victorian Commission for Gambling and Liquor Regulation.

Walsh's resignation follows revelations at the Royal Commission into the suitability of Crown to hold Melbourne's casino licence that Walsh was aware Crown Melbourne underpaid tax in 2018.

On June 7, the Commission heard Walsh began an internal investigation into the matter after the Royal Commission was announced. Interested readers can find a transcript of the revelations here.

The Crown share price fell 1.3% on the day the Commission heard the allegations.

Additionally, during the Royal Commission's closing remarks, counsel assisting the Commission Adrian Finanzio said unless Crown makes changes to its leadership, it is unsuitable to hold a casino licence.

Finanzio said of Walsh:

In the time since he's been thrust into positions of greater authority he has, with respect, not risen to the occasion in a way which can give any confidence that he has the necessary qualities to be a suitable associate of Crown.

Finanzio also said Crown's chair Helen Coonan was unsuitable for her role.

The Crown share price fell 2.6% after the comments.

Closing submissions to the Royal Commission will be heard today.

Crown share price snapshot

Despite being in the green today, the Crown share price has been struggling lately.

Right now, it's 7% lower than it was at the start of 2021. However, it has gained almost 3% since this time last year.  

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Consumer Staples & Discretionary Shares

Woman using her laptop with her feet up.
Consumer Staples & Discretionary Shares

Why I'd buy and hold Woolworths and Wesfarmers shares for 10 years

I like businesses with strong customer relationships, and I think these two ASX retail giants have plenty going for them.

Read more »

Couple checking out shoes to buy at a shop.
Consumer Staples & Discretionary Shares

Buy, hold, sell: Super Retail, Baby Bunting, Wesfarmers shares

It's a tough environment for retailers amid drastically low consumer confidence, falling home values, and rising interest rates.

Read more »

Woman buying diary product and reading food label in grocery store.
Consumer Staples & Discretionary Shares

Coles share price sinks 12%: Should I buy the dip?

Sales are still growing, but the outlook has become more challenging. I look at whether the sharp share price decline…

Read more »

A judge bangs down the gavel.
Consumer Staples & Discretionary Shares

Star Entertainment hit with $260 million fine: Can it survive?

The Federal Court handed down the fine earlier today.

Read more »

A woman gives a side eye look with her lips pursed as though she might be saying ooh at something she's hearing or learning for the first time.
Consumer Staples & Discretionary Shares

Down 24%: Is this a rare buying opportunity in 1 of Australia's top shares?

This ASX stock has caught my attention recently.

Read more »

A woman sits on sofa pondering a question.
Consumer Staples & Discretionary Shares

Temple & Webster +30%, Nick Scali -15%: Why did sector correlation go out the window last week?

Two ASX furniture retailers, two very different share price reactions. What happened?

Read more »

Smiling man with a full trolley looking at an aisle in the supermarket while holding his phone.
Consumer Staples & Discretionary Shares

Should I buy Coles shares before its Q1 results?

The business is performing well, but the shares aren't cheap. Here's what I'm considering before Friday's announcement.

Read more »

Woman using smartphone to check product details while shopping in a grocery store aisle.
Consumer Staples & Discretionary Shares

Are Woolworths shares worth buying before Wednesday's big update?

The shares are not cheap, so I think tomorrow’s sales update will be particularly important.

Read more »