Sands China can’t find enough locals to carry bricks and mix concrete for its Cotai resort extension. That hasn’t stopped the company from saying it would like to appoint ‘an Asian’ as the next CEO of Sands China.
As an aspiration it’s as laudable as belief in motherhood and apple pie, but what are the chances of it happening? And should Steve Wynn be thinking of giving Linda Chen a pay rise?
Ms Chen, a native of Shanghai, is the most obvious example of the successful ‘localisation’ of a Western operator’s management in Macau. In March she signed a new 10-year contract as Chief Operating Officer of Wynn Resorts Macau worth a basic US$1.5 million per year.
Ms Chen, a former Executive Vice President of International Marketing for MGM MIRAGE in the US, is already a member of the Wynn Resorts board. If performance related pay and stock options are added to Ms Chen’s basic salary package, the deal should ensure she remains not only one of the gaming industry’s most prominent ethnic Chinese executives but also one of the highest paid female gaming executives.
Ms Chen is not the only talented Asian (specifically ethnic Chinese) gaming executive working for Western operators. Michael Chen (no relation as far as we know, given that his family hail from the Penghu Islands in Taiwan) is President, Asia for Harrah’s Entertainment.
Speaking on Sands’ desire to hire an Asian as next CEO, the acting CEO Michael Leven said this week: “It doesn’t have to specifically be a hospitality or casino executive, but definitely someone with the right age and experience.” He was speaking at a press conference to introduce other members of the Sands China new management team following Steve Jacob’s recent departure as CEO.
Mr Jacobs himself is the embodiment of the principle expressed by Mr Leven. He came from a management consultancy background turning round troubled companies in the travel and leisure sectors.
Given the breadth of Sands’ net when looking for the next CEO, it won’t be a shortage of general business talent and business acumen that would prevent the company from hiring a Chinese or ‘Asian’ CEO. After all, the junket operators are predominantly run by Chinese managers and Stanley Ho’s gaming management has been overwhelmingly Chinese for the past four decades. The issue may be more about what taking on such a job would do for a Chinese or other Asian executive’s long-term prospects in the region.
Putting in a Chinese person at the top won’t make much difference to Sands’ relations with the Macau government and Beijing unless the company’s most senior leadership are seen to be seeking warmer ties. No Chinese appointee will want to feel he or she could become a scapegoat for either side if the policy doesn’t work out. That’s the real culture gap that has yet to be bridged.
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