MGM Mirage execs saw pay cut as economy declined

Friday, April 24, 2009 | 7:21 p.m.

SUN FILE PHOTO

Jim Murren

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Top MGM Mirage executives were paid less in 2008 as the company's financial results deteriorated, a company filing showed today.

Former Chairman and Chief Executive Terry Lanni was paid $3.814 million last year, down from $12.74 million in 2007 and $15.687 million in 2006; while Jim Murren has seen his pay fall from $10.32 million in 2006 to $8.468 million in 2007 to $3.066 million last year, the filing showed.

Murren took over as chairman and chief executive on Dec. 1. He's also the company's chief operating officer and president.

Murren, who received a $500,000 raise as CEO and now has a base salary of $2 million, is eligible for bonuses of up to $4.25 million this year.

In 2006, 2007 and 2008 his base salary was $1.5 million and he and other executives made extra money by receiving stock awards, stock appreciation rights, stock option awards and incentive payments.

The company determined there would be no incentive payments for 2008 based on its financial performance. In 2008, the company lost $855 million compared to a profit in 2007 of $1.584 billion and $648 million earned in 2006.

The MGM Mirage executive pay plan is similar to that of other Fortune 500 companies and its salary levels reflect, in part, a goal of being competitive with what other companies in the gaming and hotel industries pay.

MGM Mirage said the objectives of its compensation plan are to:

• Attract talented and experienced executives and retain their services on a long-term basis

• Motivate the executives to achieve annual and long-term strategic goals

• Align the interests of the executives with the interests of the company and the interests of the stockholders

• Provide "a minimum level of compensation" while providing for a majority of the potential compensation to be dependent on the level of company financial performance

• Motivate and reward the executives in connection with ongoing management of development projects

• Motivate and reward the executives in connection with negotiations of strategic partnerships

• Through incentive awards based on yearly performance as well as equity awards that vest over a period of time, encourage executives to balance the management of long-terms risks and long-term performance with yearly performance

• Ensure favorable tax treatment for the company for such compensation

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By Gregory

April 24, 2009

8:02 p.m.

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MGM Mirage's objectives for it's executive compensation, as listed above, totals as follows:

Use of the word Executive: 4 times
Interests of Shareholders: 1 time
Strategic Partnerships: 1 time
Development Projects: 1 time
Favorable Tax Treatment 1 time

Use of the word Employees: 0 times
By geenab65

April 24, 2009

8:19 p.m.

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Humor regarding the entire article: Priceless
By mitziomalley

April 24, 2009

8:32 p.m.

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Forbes listed Lanni's compensation(who lied about his credientials) at 12.5 mil and Murren's at 8.5 mil. I have watched my income decline each of the four years the MGM has occupied the property where I work. They have given our jobs away, chased our customers away, and strip mined us for City Center. They feel they do not have to follow rules, regulations, laws, or contracts. The are management heavy and management is the last to go. My only hope is we will be sold to someone who know how to manage a property.
By neiman1

April 24, 2009

8:37 p.m.

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Do they actually think or just copy things out of a book from business school. As soon as they start talking like this they need to be shown a door.

Objectives. Learn to bring in more than we spend.

Long Term. Make the customer happy so they come back. (can't use that, waitresses know that much)

Immediate goals. Make up enough words to think I sound important so I don't lose my job.
By phil721

April 25, 2009

7:43 a.m.

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BK awaits !!!!!
By reg373 (Mike Walker)

April 25, 2009

10:19 a.m.

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**Top MGM Mirage executives were paid less in 2008 as the company's financial results deteriorated, a company filing showed today.**

Wouldn't it be nice if the BANKS filings showed the same... ;^)
-- found a cool site; Balkingpoints ; incredible satellite view of earth
By smoke14

April 26, 2009

3:25 p.m.

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and why do people get so upset about what execs in private companys make???? if you dont like the way they do business dont spend your money there...last I checked this is a free market economy and a company can pay an employee what they wish, I dont believe the Obama admin. have attempted to take control of the casino business yet, I am sure they are on their way to try pure socialism, but a company can pay whatever they want......this is a non story