New WYNN pay system change clips Steve

Mar 24, 2014 9:14 PM

A completely restructured executive pay system, as reported to the Security & Exchange Commission by Wynn Resorts Ltd., would severely impact the compensation received by founder and CEO Steve Wynn.

Wynn’s salary of $4 million annually will be reduced to $2.5 million. Also, his perks would be substantially reduced. Mentioned was a $525,000 waiver on a lease for a villa used by Wynn but owned by the company. Under the new plan, Wynn will have to pay for the usage of the villa and will have to contribute toward the use of a company aircraft that has cost the company something nearing $1 million per year.

As for annual bonuses, the new plan provides that 50 percent be paid out in shares rather than cash.

Such shares, which will be distributed among all executives, including Wynn, will have to be held for three years following their being awarded. The manner in which they are allocated also is being revised. The plan said bonuses will be awarded on a number of “performance targets.”

A review of executives who hold company shares indicated that in recent years a number of executives have taken advantage of the rising price of company stock and have sold them repeatedly on the open market.

Wynn, who founded the company with embattled former partner, Kazuo Okada, holds approximately 10 percent of the company’s outstanding shares. His ex-wife, Elaine Wynn, holds about 8 percent. Okada’s shares, equivalent to about 20 percent of the outstanding shares, were redeemed last year by the board of directors following allegations regarding Okada’s activities in securing a casino license in the Philippines.

In calendar 2013, Steve Wynn’s compensation was given as $19.6 million.

Ray Poirier is the longtime executive editor at GamingToday.

Contact Ray at [email protected].

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