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Harrah’s execs cashed huge checks

Six among Las Vegas’ best compensated in fiscal ’08

By Richard N. Velotta (contact), Brian Wargo (contact)

Monday, June 8, 2009 | 2 a.m.

Loveman

Fertitta

The List: Highest-Paid Executives of Publicly Reporting Companies (6-5-2009)

Harrah’s execs dominate top spots on compensation list (6-5-2009)
Harrah's owners offer to buy outstanding debt (3-19-2009)
Harrah's expects annual savings of $500 million (3-17-2009)
Harrah's announces plan to reduce debt burden (3-4-2009)
Gambling on private-equity firms (10-12-2006)

Headlines from the Vegas gaming industry

The closing of the high-profile deal that turned casino giant Harrah’s Entertainment from a publicly traded company into a private business resulted in six of the company’s executives landing in the top 10 of In Business Las Vegas’ list of highest-paid business leaders this year.

Gary Loveman, CEO of Harrah’s, landed the top spot on the list with $92.3 million in total compensation in 2008.

He unseated Station Casinos CEO Frank Fertitta III, the 2007 leader, who dropped to No. 11 with compensation of $3.4 million.

Loveman and his colleagues received stock options in the $30.7 billion acquisition of Harrah’s by private equity firms Apollo Global Management LP and Texas Pacific Group.

The rest of the Top 10:

2. J. Carlos Tolosa, president of Harrah’s Eastern Division, $15.7 million

3. Charles Atwood, Harrah’s vice chairman and former chief financial officer, $13.1 million

4. Jim Murren, president and CEO of MGM Mirage, $9.9 million

5. Steve Wynn, CEO of Wynn Resorts, $8.5 million

6. Richard Haddrill, president and CEO of Bally Technologies, $8.3 million

7. Thomas Jenkin, president of Harrah’s Western Division, $7.9 million

8. Jonathan Halkyard, senior vice president and chief financial officer of Harrah’s, $5.5 million

9. Marc Schorr, chief operating officer of Wynn Resorts, $5.3 million

10. John Payne, president of Harrah’s Central Division, $4.3 million.

The list is based on total compensation packages of executives of publicly reporting companies for the 2008 fiscal year in filings to the Securities and Exchange Commission.

•••

Even though sales remain weak, the number of potential buyers checking out new homes rose in April, according to a local research firm.

Home Builders Research reported that all six areas of the Las Vegas Valley reported higher traffic than in March and that sales were up in each of the areas.

The numbers also show that people are shopping for affordable homes. More than 78 percent of the new single-family homes sold in April were priced under $200,000.

North Las Vegas had the highest number of home sales per subdivision at 2.15 in its 47 subdivisions, up from less than one in March, the firm reported. Henderson had the fewest sales per subdivision at 1.54 for its 59 subdivisions.

Eleven percent more people walked through active subdivisions in April, according to Home Builders Research. There were 343 new home sales in April, which makes 1,475 for the year. That’s down 62 percent compared with the first four months of 2008.

The median price for April sales was $215,650, the lowest since February 2005, said Dennis Smith, president of Home Builders Research.

•••

The number of people renting apartments in Las Vegas fell to a level not seen in more than a decade and, as a consequence, rents are falling to where they were in 2006.

Las Vegas-based consulting firm Applied Analysis reported that rents requested by landlords in the first quarter couldn’t keep pace with 2008 and show no sign of improving.

By the end of the first quarter, the occupancy rate was 91.3 percent, down from 92 percent in the fourth quarter. That’s the lowest reported occupancy rate in more than a decade and well below the 10-year average of 94.3 percent, the firm reported.

Longer versions of these stories appear in this week’s In Business Las Vegas, a sister publication of the Sun.

Discussion: 12 comments so far…

By qq49h

6/8/09 at 6:57 a.m.

Suggest removal

downloaded myself from gaming today rag, let's question why there is an "na" in fertitta's column of selling out (should be 'ns' - not stated, not, not applicable, because it is, and 3 negatives make a negative). that's where loveman's came from. Please stop contributing to this mess, there a lot better people for us to deal with.
By formervegas76

6/8/09 at 3:09 p.m.

Suggest removal

people are po'd at unions- give me a freakin break. what's wrong with vegas is summed up with these outrageous salaries. same around the usa.
By transplanted

6/8/09 at 6:25 p.m.

Suggest removal

"Gary Loveman, CEO of Harrah's, landed the top spot on the list with $92.3 million in total compensation in 2008."

That equates to: $44,230.77 per hour @ $92 million a year based on 2080 working hours in a year. What skill set does he have that DEMANDS this amount of money???

I am all for making a GREAT salary, but at what cost?? I guess there is no recession in his house either! Not so for those they had to lay off to pay him this amount!

Oh, this ends my participation in ANY WAY, SHAPE OR FORM AT Harrahs.
By kenodave

6/8/09 at 11:25 p.m.

Suggest removal

May these greedy scum pay when the economy picks up again and turnover will be a nightmare for the human resources dept. Not that these scum care. People, remember the Fertittas and the Lovemans and all the rest when it comes voting time and they recommend a candidate. Just remember, they aren't recommending them to help you.
By nhung

6/9/09 at 1:50 a.m.

Suggest removal

Such a Joke, Loveman is not held responsible for blowing the 600 million USD on the golf course (ie land fill) in Macau, their all laughing about this one
By POWERPLAY

6/9/09 at 5:21 a.m.

Suggest removal

I think it would be nice to see those harrah's executives give back those checks that way they would have enough money to finely finish the octavian tower at caesars palace. LOL
By hadenuf2

6/9/09 at 7:52 a.m.

Suggest removal

they made that money by taking away from the workers and players:
No 401k match for there lowest paid employees
No food for workers(they put in rip off vending machines)
No performance bonus
No raises
No clean casinos (short staffed)
Double the workload for casino staff
6to5 blackjack
little or no comps for table game players
Harrahs is a blood sucking,greedy corp,may the 6 of them rot in hell !!
By matts7052

6/9/09 at 10:38 a.m.

Suggest removal

Gary's total compensation alone would have saved 1,840 of the 8,000 jobs Harrah's eliminated in the last year (assuming $50K per job inclusive of benefits). I really think they should speak up and defend themselves...
By dave202

6/9/09 at 1:35 p.m.

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remember that most of Loveman's money was made as a result of the company being taken private. This is not salary, but bonuses from the private companies that bought Harrah's. Next year, he'll probably make 1/10th of that. I don't feel sorry for him, but those are the facts....
By kenodave

6/9/09 at 1:39 p.m.

Suggest removal

dave, that money was made by the new company taking on more debt than they could afford, just as Stations did when they went private. Those companies cannot afford the payments on that debt so consequently, the cutbacks to employee benefits and customer service (comps.) Either way you look at it, management made out like bandits at the expense of the employees.
By greenphantom

6/9/09 at 6:56 p.m.

Suggest removal

How can these greedy b**** justify these kind of salaries when the employees have paid the price.
NO more 401
Raises of 1.25%
Filthy casinos (short staffed)
Little or none comps for players
No napkins for cocktail waitresses
No more free lunches, we have to pay now
Customer service does not exist anymore
One slot attendant per floor, (use to be minimum of four)
How do i know, I work at Harrahs, they are driving customers to the competition.
By mbellhornst

6/9/09 at 9:19 p.m.

Suggest removal

You guys are morons. This $92 million was him effectively "cashing" in all his stock options (fully vested ) that he accumulated throughout his tenure before the company went private. It's not his fault TPG and Apollo offered him that price for his stock. If someone offered you a million dollars for your bottom floor condo in north las vegas, you would obviously take it too. For the last time this is not his #%$(*%* annual salary or something.