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StumbleFormer Pinnacle CEO to get $2.8 million in severance
Thursday, Nov. 12, 2009 | 1:56 p.m.
Sun Coverage
Regardless of whether he quit or was fired, former Pinnacle Entertainment Inc. Chairman and Chief Executive Officer Dan Lee is set to receive $2.8 million in cash severance payments over three years.
Las Vegas-based Pinnacle disclosed the severance terms today.
Pinnacle said Lee will also be entitled to receive accrued salary through his Saturday resignation date, a bonus of $395,000 for 2009 and health benefits coverage and disability insurance coverage for up to 18 months.
Certain of Lee’s outstanding stock options are now fully vested and exercisable and he has one year to exercise them, Pinnacle said.
Pinnacle announced the departure of Lee on Monday, saying he had resigned as CEO and from the board of directors to pursue other business interests.
Today, Pinnacle said it entered into a separation agreement with Lee providing that his resignation will be treated as a ``termination by the company without cause.''
Lee's departure followed news that an investigation was under way into his lobbying of a St. Louis County Council member in Missouri. The lobbying and Lee's comments at a public meeting involved his attempt to block development of a casino that would compete with a Pinnacle casino.
Pinnacle, which is looking for a new CEO, is now being led by former Aladdin Gaming and Harrah's executive Richard J. Goeglein, who was named interim nonexecutive chairman; and former Hilton Gaming executive John V. Giovenco, who was named interim chief executive officer. Both are Pinnacle board members.
Besides Missouri, Pinnacle has operations in Louisiana, Indiana, Nevada and Argentina.
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I hope he doesn't forget to file for unemployment. How is he going to get by on just $2.8 million?
Good for Dan Lee as he did a decent job prior to exercising his right to free speech with an "elected official" in Missouri. Politics at its best...both in Missouri and with Pinnacle!
This piece of crap executive doesn't deserve to walk away with all that money, what could he have possibly achieved to be rewarded that much? Meantime workers are layed off for salaries that don't even appear on the map when were talking this kind of money. Disgusting..
Sign I will hold on the corner:
_
WILL WORK TO BE FIRED FOR
$2,800.000.00
BUCK$$$
Sign I will hold on other corner:
_
WILL WORK TO
SCREAM AT YOUR FAVORITE POLITICIAN FOR
$2,800.000.00
BUCK$$$
New Help Wanted Sign:
Desparately Seeking
CEO
Must be calm, professional, able to control emotions at meetings, and keep mouth shut.
WILL BE PAID EVEN IF FIRED FOR NOT DOING ABOVE:
$2,800,000.00 BUCK$$$
Apply Immediately
Dang ... I'm getting let go at my job next week and am only getting two weeks worth of severance (been there 3 years)... must be nice...
There is no doubt that Dan Lee needs some help in the PR department, but with the amount of capital that his company has invested in the St Louis region (north of 1 BILLION) and with the state muscling Pinnacle to sell or give up one of their licenses (currently being utilized by The President riverboat), I probably would have lost it too when this county executive essentially publically welcomed competition for Pinnacle. Now competition is all well and fine, but keep in mind that there are no gaming licenses left in the state to award. So where will a new operator get one??? That is where politics comes in and they are going after PNK. Great way to bite the hand that feeds you Missouri!
While I appreciate the opinion of all parties, I feel very compelled to interject here. I understand that the severance he received was a very large one but has anyone thought about the years he has put in to the gaming business to be able to earn that type of money? Has anyone reviewed his professional profile? I can say first hand that not only was Dan Lee a good leader but from what I saw, he was also a hard worker. I worked for Pinnacle for 9 1/2 years, starting before Dan took over the company, and he, along with many others, made a lot of positive changes and grew the company beyond what most skeptics believed was possible. So in his defense, he earned that money!
I am also a "casino executive" and I don't make nearly what he did but if the day comes that I do, I won't feel guilty for it. I have worked VERY HARD to get where I am and will continue to do so. I don't think it's fair to say that just because someone makes an amazing salary that he sits around and does nothing...he had to do something to get where he is, right?
And as far as the controversy in Missouri, they need to get up with the times. Bantering, yelling and sometimes "threatening" are the ways we gaming people negotiate. He would never follow through but that is accepted behavior in Nevada and he has learned from the largest gaming state how to conduct business!!