gaming:

IGT lays off managers to cut costs

Wednesday, June 17, 2009 | 4:45 p.m.

Headlines from the Vegas gaming industry

International Game Technology has terminated the employment of some management level employees in a cost-cutting initiative, a regulatory filing revealed today.

Richard Pennington, executive vice president of corporate strategy, was the only executive named in the Security and Exchange Commission filing.

Pennington will receive a severance package of $242,000. He received a base salary of $420,000 during the fiscal year ending Sept. 30, 2008.

IGT spokesperson Ed Rogich said the company will not be releasing additional names or details on others terminated in the management reduction initiative.

“We’re following the plan that CEO Patti Hart has talked about all along,” Rogich said.

During a second quarter earnings call in April, board chairman and former CEO TJ Matthews said most of the cost reductions were behind the company. IGT has cut about 700 people, or 10 percent of its workforce, since November 2008.

Earlier this month, IGT hired former Microsoft executive Chris Satchell as the company’s new chief technology officer.

Discussion: 11 comments so far…

By rejco100

6/17/09 at 8:47 p.m.

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There goes another million dollar home on the foreclosure block...
By rejco100

6/17/09 at 8:49 p.m.

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This was Richard's dream job, and he most likely started at the bottom; not a chance in the world for another opportunity like that...not now.
By LVBear

6/18/09 at 11:04 a.m.

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Nice severance package, more than half his annual salary! What a ripoff of the shareholders. Shameful.

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By rejco100

6/18/09 at 1:31 p.m.

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Forbes reported his annual total compensation was around $1.5 million for 2008, and had been with the company since 1991.
By exasperated

6/18/09 at 3:54 p.m.

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Oh my, poor Richard Pennington. $420,000 a year plus a severance of $242,000. How will he ever survive? My heart breaks for him. I hope he wasn't living paycheck to paycheck.
By afveteran

6/18/09 at 5:50 p.m.

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IGT shows they're a brutal company.
By Willy

6/18/09 at 7:54 p.m.

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Yeah I'm sure he'll be filling out unemployment forms once the severance period is covered. Please! Why do people here care anyways, he's never lived in Vegas.
By stevem

6/18/09 at 10:03 p.m.

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folks,

it's all relative. if you make $100,000 per year...you have a $100,000 per year lifestyle.

if you make $420,000 per year, you have a $420,000 lifestyle.

the more money people make, the more expensive things they buy.

he's probably got the same debt / bills to income ratio like everyone else.
By ynotjohn

6/19/09 at 9:59 a.m.

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As a shareholder, I am disappointed to pay for his severance. All of these golden parachutes are modern day thieves, money for nothing.

If these executives are so bright, have them start a company from scratch and then they get the big salary.
By MysterMr

6/19/09 at 6:21 p.m.

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I talked to Barbara Buckley and Stephen Horsford. The solution is simple for IGT...

Just give every employee a cost of living increase, cut features out of their product, then raise the prices of the machines they sell.

It's a sure-fire solution.
By mred

6/20/09 at 4:51 a.m.

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Rogich? that name has a familar ring to it