Inside Asian Gaming

APR 2019 INSIDE ASIAN GAMING 33 Pansy Ho named a director of STDM, while Leong was guaranteed the role of Managing Director of SJM for a period of six years. That period expired in 2017. In a January 2019 note titled “Let the game of casino thrones begin”, Deutsche Bank research analyst Karen Tang suggested that formation of the new Pansy Ho-Fok alliance could well be the first step towards removing SJM’s current management, including Leong. “We see a risk that, when the current terms of board directorships expire for Leong and her associates, namely SJM’s CEO (Dr Ambrose So) and COO (Louis Ng), they may not be re-elected again,” Tang wrote. “We believe the COO’s term expires in June 2019 and the other two in June 2020.” Notably, aside from promising to submit a “common proposal” for the election of STDM board members in 2019, the alliance also stated that the parties “will support the nomination and election of person(s) who promote good governance of the SJM board, including Chairman, Co-Chairman and Director(s). The parties will submit a common proposal for the election of the board of SJMSA, the Macau-incorporated company which holds the gaming concession.” While Leong is unlikely to go quietly, the appointment of Daisy Ho – a close ally of her sister Pansy – as SJM Holdings Chairman after Dr Ho officially stepped down from the board last June is intriguing. Clearly there is more of this saga to be written in the coming months. The succession plan at Sands appears more clear-cut. Adelson himself has laid the pathway for a relatively smooth transition once he exits the company, with son- in-law and current CFO Patrick Dumont having long been groomed to step into the leadership role. In a March note, analysts at brokerage Bernstein opined that news of Adelson’s cancer battle “should not cause investor alarm with respect to LVS or Sands China. The companies both have strong management teams and there is an internal succession contingency in place in the event of Mr Adelson’s inability to perform his duties as Chairman and CEO.” Although full details of such a succession plan have not been released publicly, Bernstein added, “The company has a capable management team running the operations and remains in good hands under the leadership of President and COO Rob Goldstein and CFO Patrick Dumont. “AlongwithSandsChinaPresident andCOOWilfordWong and Chief of Staff Grant Chum, and a capable cohort of direct reports in the US, Macau and Singapore, the management team at both LVS and Sands China is experienced, strong, has long tenure with the Sands organization and is capable of continuing to execute the Sands vision and strategy.” It might not be all smooth sailing for Sands however. As one industry commentator told IAG , it wouldn’t surprise to see Adelson’s wife Miriam, 12 years his junior, become more vocal in guiding the company forward, most likely via refreshment of the LVS board. This would mirror the tactic used by Wynn Resorts’ largest shareholder, Elaine Wynn, to bring about widespread change following the fall of her ex-husband and former Wynn Chairman and CEO, Steve Wynn, last year. It’s also entirely possible that Goldstein, at 63 years of age, could be one of those to make way, potentially leaving a dearth of experience at the very top in regards to day-to-day operations of the global casino giant. One thing is for certain, though – while Adelson and Dr Ho will eventually make way, their legacies will live on for many decades to come.