Clark County Commissioner Steve Sisolak listens as Gary Loveman, CEO and president of Caesars Entertainment, says a few words during the ribbon-cutting ceremony at The Cromwell on Wednesday, May 21, 2014. The Cromwell is the first standalone boutique hotel on the Las Vegas Strip.
Published Wednesday, Feb. 4, 2015 | 4 p.m.
Updated Wednesday, Feb. 4, 2015 | 9:45 p.m.
Gary Loveman, the Harvard economist who led Caesars Entertainment’s explosive growth since 2003, will step down as CEO this summer, the company announced today.
Loveman’s departure comes as the largest operating division of the debt-saddled casino company seeks to restructure the bulk of its massive debt load through bankruptcy proceedings in Chicago. Loveman will remain on board as the company’s chairman, and he’ll continue to oversee the restructuring in that capacity.
He’ll be replaced as CEO by Mark Frissora, the former chief executive of rental car company Hertz, effective July 1. In the meantime, Frissora is joining Caesars as CEO-designee and a member of the board of directors.
Loveman said in a statement that Caesars had “accomplished more than what we could have imagined” when he first arrived at the company in 1998. He started out as chief operating officer of what was then Harrah’s Entertainment before being promoted to CEO in 2003.
“Now, with the company in the midst of a formal restructuring of one of its subsidiaries and a merger between entities, the time is ripe for a transition,” he said. “It has been an honor to be the chairman and CEO of Caesars Entertainment. My decision to begin to transition management now comes with the confidence that we have taken the steps necessary to ensure the company's long-term success.”
Loveman was credited in the announcement with transforming Caesars “from a regional gaming company to a leading international gaming, entertainment and hospitality company.” Accordingly, Caesars’ value shot up from $7.9 billion to $30 billion at the time it was taken private in 2008.
Among Loveman’s accomplishments the company highlighted in its announcement were his creation of the Total Rewards loyalty program and his staunch advocacy for online gaming as past chairman of the American Gaming Association. He also led the acquisitions of Caesars, Planet Hollywood, the World Series of Poker and Horseshoe.
Prior to joining Caesars, Loveman was an economist and associate professor at Harvard University.
Marc Rowan and David Bonderman, founders of principal Caesars shareholders Apollo Global Management and TPG Capital, jointly praised Loveman’s tenure. They said in the statement that his “leadership, intellect, vision and passion” for employees, guests and the company itself helped steer Caesars through “a dynamic period for the gaming industry.”
“We respect Gary's desire to begin transitioning the management of the company at this time,” they said.
The Caesars announcement credited Frissora, who joined Hertz in 2006, with leading a substantial expansion of the company and significantly increasing shareholder value. He left Hertz in September for personal reasons, according to Bloomberg Business.
But Bloomberg also noted that Frissora left after investors called for his removal, “citing accounting and operational missteps.”
Bonderman and Rowan said in the company announcement that Frissora has a “long history of driving growth, optimizing operations and creating shareholder value.”
Frissora was the CEO of Tenneco, an automotive parts manufacturer, before he came to Hertz.
He arrives at a critical juncture for Caesars. In mid-January, the operating division — called Caesars Entertainment Operating Company — filed for Chapter 11 bankruptcy protection in Chicago. Caesars is trying to reduce that division’s $18.4 billion debt load by nearly $10 billion.
Jim Murren, the CEO of fellow Las Vegas casino operator MGM Resorts International, responded to the news of Loveman's departure with well wishes for him and Frissora.
"Gary is a thought leader and a forerunner in our industry in many areas," Murren said in a statement. "More than that, he is a friend. Along with his colleagues throughout the industry, I extend our best wishes in his transition."
Murren, who is also the current chairman of the American Gaming Association, said he extends "a welcome and a pledge of support" to Frissora as he prepares to take the helm at Caesars.
Join the Discussion:
Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.
Full comments policy