Feb4
Wynn Resorts Officials Chose Shares Rather Than Salaries
March 28, 2020 TamaraTam
The coronavirus has already harmed worldwide economies and it threatens to bring additional problems to the gambling sector. Stock prices are also affected, recording regular dropping figures. The entire casino sector is also facing the effects of Covid-19 with some shares falling up to 70%. Most analysts believe in the temporary duration of the collapse, with the economy coming back to the previous state. Wynn Resorts executives believe in the same scenario so they chose to get shares over salaries until the end of the year…
What Was Announced
Wynn Resorts has just revealed that several executives, including CEO Matt Maddox, will receive shares rather than paychecks. He said:
“The Company’s CEO, Matt Maddox, agreed to forego 100% of his salary in exchange for shares for the remainder of the year. The cash savings arising from the executive salary reductions will be used to offset ongoing employee payroll and other expenses.”
It seems that Wynn executives don’t bother with such decisions, giving the amount of their salaries. The company’s CEO received $17 million in 2018 (1.9 million in cash and $12 million in stock). Maddox signed a contract to continue working as CEO for an additional three years under the same payment conditions.
Other executives from Maddox office had also made a decision on a compensation plan. Wynn Resorts didn’t unveil more specific details on the agreement and compensation deals but mentioned that executives had accepted to exchange salary for anything between 33% – 100% in shares until the end of 2020.
Previous Situation
Official information shows that Wynn was trading at a 12-month highlight of $151.62 (mid-January). With the spread of COVID-19, world economies have been devastated together with single companies. Starting from that moment, the company’s stock price fell to $43.02 on March 18. After the completion of the nine-month period under the agreed payment program, the CEO would receive about $1.42 million into shares. If the stock price comes back to the January level, Maddox will receive more than double the amount.
With this program, Wynn Resorts continues to follow strategies from other companies. For example, CEO of real estate investment trust Gaming and Leisure Properties, Peter Carlino, has taken 80,000 of enterprise shares. If the price returns to the pre-Covid-19 level, Carlino will triple its amount while completing more than a successful deal…
Source:
“Wynn Resorts executives opt for shares over salary“, Erik Gibbs, calvinayre.com, March 25, 2020.
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Everything is about money…Wynn Resorts is serious gambling contender and its executives know the game. I am looking forward to seeing what will happen in the next few months. However, I believe that CEO Maddox will have more than a lucky year…