MGM Resorts CEO Jim Murren issues sharp rebuke toward investors
May 09, 2018 10:10 AM
by Robert Mann
MGM Resorts International CEO Jim Murren issued a sharp rebuke toward investors during Tuesday’s Bloomberg’s Business of Equality Summit in New York.
Murren said that although MGM has increased the number of women in management and invested in solar panels to power its casinos, investors just don’t care enough.
“I find it very hypocritical that investors talk about wanting companies with a good conscience, but they’re really looking for companies that are going to make them a lot of money in the stock. They talk a good game, but they don’t invest with their integrity at the forefront. I think there’s a huge problem there.”
Murren noted that MGM, the largest owner of casinos on the Las Vegas Strip, trades at a lower multiple of earnings than rivals Las Vegas Sands Corp. and Wynn Resorts Ltd.
“People aren’t differentiating between the culture we’ve developed,” Murren said. “If they are, they’re not weighing it the same as how much money do you make in Macau.”
The executive, 56, said the industry was a “good old boy network” when he joined 20 years ago. Inspired by his wife, Heather Hay Murren, a onetime consumer-products analyst at Merrill Lynch, and “how much harder she had to work” than her male counterparts, Murren said he began promoting more women managers and equal pay.
One-third of MGM casino presidents are women, up from zero in 2000, Murren said. Some 44 percent of managers overall are female, and 68 percent of employees are minorities.