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StumbleWynn executives among the highest paid in Las Vegas
Sunday, May 30, 2010 | 2 a.m.
Sun Coverage
Steve Wynn.
Jim Murren
Gary Loveman, CEO of Caesars Entertainment
With business volume in Las Vegas retreating to 2004 levels, compensation packages for the area’s highest-paid executives last year sunk to 2001 levels as incentive pay and stock-based compensation dried up in the recession.
The 2009 executive compensation figures are a dramatic change from the boom years in Las Vegas, when casino pay packages, fueled by rapid industry growth and unprecedented stock gains, were among the nation’s highest. And yet several casino giants found ways to reward executives amid the downturn, saying bosses deserved incentives for doing their best to counteract deteriorating economic conditions outside their control.
The usual casino chiefs top this year’s list of the highest paid executives of public companies in Southern Nevada, although they earned millions, and in some cases, tens of millions, less in 2009 than the previous year, according to an analysis of recent Securities and Exchange Commission filings by Ulf Buchholz, research director of In Business Las Vegas, a sister publication of the Las Vegas Sun.
Although officials with MGM Mirage, Harrah’s Entertainment, Las Vegas Sands and Station Casinos have topped the list in previous years, Steve Wynn earns this year’s No. 1 spot. The Wynn Resorts CEO reported total compensation of $8.4 million, including a salary of $3 million.
On the In Business list for 2008 salaries, Wynn ranked No. 5 with total compensation of $8.5 million. Wynn is among several local executives who received bonuses in 2009, the worst year on record for the gaming industry in Las Vegas.
Executives qualify for incentive pay if their companies meet or exceed predetermined performance goals.
They can receive bonuses for reasons that have little relation to actual earnings, such as years of service or milestones such as acquisitions or resort openings.
Compensation packages include any gains in the value of retirement plans, earnings from the sale of stock or stock options and other executive perks such as high-end health insurance plans and allowances for use of company cars and airplanes.
Bonuses boosted the rankings for other Wynn executives, including the No. 2 executive, Matt Maddox. Wynn’s chief financial officer earned $7.3 million last year, including a $5.7 million bonus — the highest on the list — atop his $779,988 salary. He got a raise, too.
At No. 4, Wynn Chief Operating Officer Marc Schorr earned $6.5 million, including a bonus of $2 million, a salary of $1.8 million and $1.5 million from the sale of Wynn shares.
MGM Mirage CEO Jim Murren ranks third, with $6.7 million in compensation, including a $2 million salary, $3.5 million in incentive pay and a $500,000 bonus.
Murren ranked No. 4 in 2008 with total pay of $9.9 million. In 2009, he was one of the few executives to receive a higher salary — $2 million versus $1.5 million in 2008 — thanks to his promotion to CEO after the sudden departure of Terry Lanni in 2008.
Harrah’s Entertainment CEO Gary Loveman is No. 5 with total compensation of $6 million, including a $1.9 million salary and $3 million in incentive pay. Loveman was No. 1 in 2008 with total pay of $92.3 million, but that included a gain of $87.1 million on the exercise of options related to the deal in which the company was taken private.
Executive compensation packages are determined by committees composed of independent members of corporate boards. These committees typically base salaries and other subjective measures on what similar companies pay.
Like shareholders in many other American business sectors, some gaming investors question whether the industry’s top executives — given the billions in lost shareholder wealth — are worth the millions they get paid.
Those complaints are raised by some stockholders of MGM Mirage, Harrah’s Entertainment and Station Casinos, companies that took on massive debt when times were good and are paying the price now. Station sought bankruptcy protection, and MGM and Harrah’s, forced to divert much of their earnings to pay down those debts, are striking deals with lenders to avoid a similar fate.
MGM narrowly escaped bankruptcy last year as it scrambled to finance CityCenter, which placed a major financial burden on the company as business was plummeting in Las Vegas.
MGM executives still received incentive pay last year thanks to its $980 million in earnings. Incentive pay was pegged to the company earning at least 70 percent of its desired earnings target of $1.4 billion. It earned 88 percent of the target.
Wynn went another route, awarding no incentive pay, but doling out cash bonuses to executives “in recognition of the financial success” of the Hong Kong-based initial offering of public shares for its Macau casinos and “success in adjusting the company’s financial structure to resist the extremely difficult macroeconomic and credit market conditions in 2008 and 2009.”
Despite its plunging earnings in Las Vegas, Wynn Resorts is among the most financially stable of the gaming giants, in part because it did not take on huge debts during the boom years.
According to an executive analysis conducted by pay expert Graef Crystal for Bloomberg News in May, Steve Wynn, the only casino executive to be included, is slightly underpaid.
The study used shareholder returns as the main barometer for appropriate pay. Crystal said that was the best measure because the returns can’t be manipulated by shifting performance targets and creative accounting techniques.
A version of this story appears in this week’s In Business Las Vegas, a sister publication of the Sun.
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yeah right, these wonder boys are worth their money. get a group of regular people who post here and we could run these places better and make more money and have salaries a lot lower than these whiz kids.
Comment removed by moderator. Off-topic.
Comment removed by moderator. Off-topic.
Notice how Mr.Wynn is the only one with a smile in his photo :). He is untouchable plain and simple. He has a vision and a plan for that vision others just have a plan and dont follow up on it and just try and work around things putting "bandaids" and making excuses.
FormerVegas76: Yeah right.. Half the people in Vegas cant drive, I dont see how they would even attempt to drive a business. If I could I would pay people to drive better, then have them run a casino LOL
Steve Wynn is the only one with any brains in that bunch.
Good thing Wynn saved $100 million per year with the following cuts February 2009:
Reduce pay for salaried employees 10-15%
Reduce workweek to 32 hours for many full-time, hourly employees.
Suspend employer match to 401(k) accounts.
Eliminate 2009 bonus accruals.
Glad to see taking some of the dealer's tips for the managers is working out for Steve.
Matt Maddox, CFO. Total Calculated Compensation $15,026,299 at only 33 years old
Marc D. Schorr, COO. Total Calculated Compensation $18,884,865
Linda Chen, COO Macau. Total Calculated Compensation $11,158,510.
Kim Sinatra, Senior VP. Total Calculated Compensation $10,450,253.
Lowest paid Wynn Executive (counting only ones with total compensation listed):
Stephen A. Wynn. Total Calculated Compensation $8,385,831.
Wonder if Steve can see the checks he's signing to is top staff?
The list of names goes on but lacks compensation details.
http://investing.businessweek.com/busine...
Active1 & Dickerjd
With all that said and done people would still rather work there (Wyn/Encore) then any where else. Who else gave their workers $1,000 as a christmas gift. Granted it was done a few years back, it was still done.
Nice gig if you can get it.
Steve Wynn reminds me of Larry King.
They are both living caricatures of their former selves.
Who cares? These are private companies. They should not be under such a spotlight like government agencies. Now, having said this I realized most are "public" companies; it's up to the stock-holders (owners) to deal with these issues and vote out the board if they don't like it.
This is the USA..capitalism is the ideal. Let these guys get paid without carping about it.
Another example of the Sun trying to stir up controversy, when it's really none of our business if we're not shareholders.
Gee for someone who whines about Obama so much - he seems to do OK, I thought he was going to China?
It is a public company, so it is the publics business. If he doesn't like it, go private or re-incorporate in China.
mred, I'm comfortable with the assumption that a high % of people that complain about his pay are not shareholders, just people that like to complain and hate the rich/successful.
That's why the Sun posts these stories, to get their readers all excited and to start a debate, which results in more traffic to their site.
Why should the taxpayers servant Gibblets, get involved in a matter involving Peroni and MGM? Hire a arbitrator or take it to court. If Joe Slub has a problem with a business does GOVO get involved? The rich should pay their own way and not milk the taxpayers.
The transcontinental railroad (Government initiative, remember Vegas started as Railroad town? If the transcontinental railroad wasn't built, it's doubtful that the SLC to LA line would have been built in 1906); the Interstate Highway System; along with the Hoover Dam established Vegas. All Federal Government projects. If not for Federal tax and spend, rich guys like Wynn would not be rich. Also, the sweetheart legislation was crafted for Wynn's art gallery investments. The government has helped Wynn out big time.
Also, are you complaining that the SUN is being entrepreneurial? I thought you were for capitalism?? I don't hear Wynn Toadies complain when the Sun gives attention to Garth Brooks, the big Pool opening and the like out at the Wynn carpet Joints?
Anyone can start a paper, or a handbill or flyer. Anyone can get a website. However, there are a limited number of Radio Station Licenses, for example. Start your own paper/website and make sure you do a good job shinning the Big Man's shoes on the way to China.
Comment removed by moderator. Off-focus, talking about the Sun's role in the community.
bring-lookin for a job or already have one with jesus. opps i mean steve
If you don't like it, don't patronize Wynn properties or buy Wynn stock. Otherwise, what Steve Wynn pays executives is not anyone's business.
Rather than zoom in on salaries for Wynn's top people..look harder at the local police/fire departments.In proportion what the top department people are getting....that I'm more intested in.
The Love Boat is living large, very large.
THE WORD 'PIMPS' COMES TO MIND......
Glad that steve and his cronies are living well while stealing from his dealers, it costs alot to buy up all the politicians, judges and etc in this state as he has for how many years! Once a marketing genius - now a greedy corporate a-hole!
One day stevie- money won't vuy your health! or your salvation!
Perspective for the average working person with an hourly wage or salary:
Matt Maddox, CFO. Total Calculated Compensation $15,026,299 ***********
equals $7224.18 per hour
Marc D. Schorr, COO. Total Calculated Compensation $18,884,865****************
equals $9079.26 per hour
Linda Chen, COO Macau. Total Calculated Compensation $11,158,510. *****************
equals $5364.67 per hour
Kim Sinatra, Senior VP. Total Calculated Compensation $10,450,253. ***************
equals $5024.16 per hour
Lowest paid Wynn Executive (counting only ones with total compensation listed):
Stephen A. Wynn. Total Calculated Compensation $8,385,831. ***************
equals $4031.65 per hour
(maybe needs to look for a second job to supplement?)
By improveLv "I'm comfortable with the assumption that a high % of people that complain about his pay are not shareholders, just people that like to complain and hate the rich/successful." "when it's really none of our business if we're not shareholders."
It is your business if you get a paycheck from there.
When the Wynn comes out and says:
We're all going to pull together
Skip the scheduled raises
Get less paid hours in a week
Take a pay cut
Work harder to make up for less people to do the same job
Stop bonuses
Suspend 401K programs
Including the executive level
But then the next year it seems like the executive level is doing fine while everyone else has given up pay, hours, and benefits.
Tuesday, Feb. 3, 2009
The company will reduce salaried employees' paychecks by 10 to 15 percent.
CORPORATE LEVEL EXECUTIVES HAVE ALREADY TAKEN A PAY CUT.
"Everybody makes a little less money but everybody keeps their jobs," Wynn said. "We don't want anybody on unemployment here -- or without insurance."
The program is expected to save about $75 million to $100 million a year. That is a loss of income of $6,000 - $8,000 per employee per year.
But te executives made millions each in bonuses.
An example would be Matt Maddox who had a bonus of $5,650,000.
Linda Chen with the smallest executive bonus I could find. She became the Chief Operating Officer of Wynn Macau Ltd., in September 2009 and got a $1 million bonus in 2009. Remember this is about 7 months after the no bonus tighten our belt speech from Wynn.
Active1, you're right, I should have included the employees in my comment. I'm aware of that policy.
Active1, your comment brought out a funny memory for me.
I remember when MGM MIRAGE gave all of their employees a George Foreman Grill for the Holiday Gift.
And then Mr. Wynn went and gave his employees $1,000. And I remember it wasn't only $1,000, but it was AFTER TAX $1,000, so it could be as high as $1,300 for some people!
MGM MIRAGE employees felt pretty sheepish about their George Foreman Grill after that!
How much will that be in hwan?
Get on the boat Steve Whine, the sooner the better.
thanks formervegas re: bringiton...i worked at the Wynn and i wouldn't ever work there again. Customers and executives from other departments loved me but it seems like my supervisor's job description was "fire this guy". When I left I heard similar complaints from at least 4 or 5 departments. One customer told me I was the first nice guy he had encountered at the Wynn and he had already dealt with 8 people. I don't know why anybody is holding on to the Wynn myth from 1989 when he opened the Mirage...when I was at the Wynn people couldn't find other jobs fast enough. Complain about Loveman or Murren all you want...Wynn is no better and maybe worse.
The Wynn is a business and as long as Steve Wynn is paying the minimum wage, he's not obligated to justify the wages he pays. If you want the big bucks, apply for those jobs. If you don't like the wages Wynn pays, go work some place else. All you people who call Obama a socialist ought to look closely at yourselves when you demand to make Wynn share the wealth.
Boycote Wynn Properties. No drink comps at the Bar. He rips you off and you can't even get comped. Placed $100.00 in a Machine at the Bar. I play $2.00 DDB. Was told by the bartender they don't comp drinks. Charged me $6.00 for a beer. Last dollar Wynn's will ever see from me.
Hey Patchem,
Are you nuts. Playing $2.00 ddb at a casino on the strip. I hope you like seeing your $100 bills fly away, one every five minutes.
Did they forget to include Garth Brooks also? LOL.