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Wynn executives exchange salary for stocks

Discussion in 'Misc. Vegas Chat' started by spdandpwr, Mar 24, 2020.

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  1. spdandpwr

    spdandpwr VIP Whale

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    Wow! Executives are probably going to make bank off of this, but for them to forgo their salaries so they can pay staff their salaries + their tips is a huge gesture. It's another reason why Wynn is one of the best operators out there.

    --

    Wynn Resorts said Tuesday the company’s top executives agreed to forego all or a portion of their salaries in exchange for stock in the casino operator during the current shutdown of properties in Las Vegas and Boston due to the coronavirus pandemic.

    The company announced last week it would pay all of its employees, including their average tips after it closed its resorts to help reduce community spread of the virus.

    CEO Matt Maddox agreed to forego 100% of his salary shares for the remainder of the year in exchange for Wynn Resorts. According to a Securities and Exchange Commission filing in December, Maddox earns $1.9 million in salary.

    Directors and other executives are foregoing between 33% and 100% of their salaries.

    https://www.cdcgamingreports.com/wynn-executives-exchange-salary-for-stock-in-to-help-fund-employee-payroll/
     
    Last edited: Mar 24, 2020
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  2. comfortablynumb

    comfortablynumb Dogs have owners, cats have staff

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    I love this so much.
     
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  3. Marky147

    Marky147 VIP Whale

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    Ok, guess that's the TBC solved for my December trip.
     
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  4. VegasBJ

    VegasBJ VIP Whale

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    Great gesture
     
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  5. mrem3200

    mrem3200 VIP Whale

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    It is great that they are doing this to be able to pay the rank and file that need and deserve the cash now. But let's not, necessarily, make these guys sound like heros. The linked article was poorly worded and I didn't read the SEC filing so it is hard to know the details but...guys at this level don't live paycheck to paycheck, obviously, so they (for the most part) don't need the cash now. They want the appreciation in the equity. Again, I don't know the details but if the CEO was told he would have to give up his $1.9 m salary and instead would be given $1.9 m worth (or some fraction of it) of stock at the current value, he would be stupid not to do it.

    Heck, I am the CFO of a small public biotech and our stock has been hammered recently. If my Board asked me to forego my salary in exchange for stock, depending on how much stock it was, it would be a no-brainer.

    Again, I am not criticizing them, but there is a LOT of upside for them doing this given the current state of the markets. As spdandpwr said, they will likely make bank off of this move, not short term, but in the long term.

    But short term it was a good PR move and helped the employees so it is a good thing. Everyone wins, I suppose.
     
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  6. spdandpwr

    spdandpwr VIP Whale

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    Yeah, there's gotta be some silver lining, but Directors too are forgoing salary. Also, don't forget that the dilution in exchange for salary hurts the SP. Also, I don't see many other companies doing anything nearly as creative to maintain paying their employees -- MGM was the first to lay their staff off. Heck, most companies are up to their eyeballs in corporate debt as is that they effectively operate 'paycheck to paycheck'. Wynncore has always had sound capital structure.
     
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  7. Village Idiot

    Village Idiot Low-Roller

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    Unless I am mistaken..hence my name....doesn't the new stimulus package prohibit the stock buyback for public companies?
     
  8. comfortablynumb

    comfortablynumb Dogs have owners, cats have staff

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    It appears they aren't buying it back; it's being given in exchange for foregoing their salaries-
     
    Last edited: Mar 25, 2020
  9. Grant1982

    Grant1982 High-Roller

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    Companies buying back stock is completely different than stock being rewarded as compensation. When a company buys back stock that stock is usually retired, therefore making each existing stock worth more (think bigger piece of the pie). This would be either the stock going directly to the upper management, or in the form of options which could be exercised for stock should it reach a certain price.
     
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  10. sinnerman

    sinnerman VIP Whale

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    My understanding is that they are not foregoing salary. They are exchanging salary for stock, which is very different.When the stock bounces back, they will probably make a significant profit from this move.

    However, it is nice of the Wynn corporation to continue paying their workers wages plus tips (instead of just wages). A kind gesture.
     
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  11. Flowers

    Flowers VIP Whale

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    Bottom line, the Wynn leadership didn't have to do this but they chose to do so while also taking care of employees with salaries and average tips. That is extraordinary and the fact that they are taking stock in lieu of salaries shows that they have faith in their company and in their employees. Bravo.

    Two days ago was the first time ever that I bought shares of a company's stock, other than stock in the company for which I work. I am an index fund/tiny expense investor. I bought WYNN. I didn't buy a lot, just 50 shares, but it is interesting to see how well the stock has done even in the past two days.

    My host reached out to me last night just to check in as he has been keeping posted about NYC. Wonderful conversation. We talked at some length and honestly, it was a great stress reliever to talk to him and to hear how well he is doing and how good he feels about how Wynn senior leadership is treating all employees.

    I brought up upcoming trips and said I would hopefully be back in August for my birthday and that I don't expect to come in late May or for July 4th. I also shared that if we have a good handle on this nationally and globally by October, I MAY have a semi-mega trip in October with my mother but that at this point I think I will bring my mother back to Vegas next April. He knows my mother well and her health issues and understood completely.
     
    Last edited: Mar 25, 2020
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  12. Sonya

    Sonya Queen of VMB

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    I used "forego" because that's what the article said, but I like "Exchanging" better. I'm going to edit the thread title.
     
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  13. hammie

    hammie VIP Whale

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    This would be the model for other public companies to emulate, I applaud Wynn for doing this in an era when corporate CEO’s compensation increased 1000% compared to 12% for average workers since 1978. (Source, CNBC)
     
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  14. Kisby

    Kisby High-Roller

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    This is part of what caused me to buy more stock in Wynn. The price was very low last week when I made my purchases. I am investing (gambling) that the price will go up significantly when things get back to normal.
     
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  15. nostresshere

    nostresshere Mr. Anti Debit Card

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    Yep.

    And, those sr managers have even more incentive to get the company back on solid footing and raising the stock price.

    Anything they do to get people back INTO their casinos is good for everyone.
     
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  16. AllenAndRossi

    AllenAndRossi VIP Whale

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    You don't REALLY believe the suits are doing this because it's the ONLY way to pay the rank-and-file employees, do you?

    They had already announced last week that they were paying employees.

    Now one of the suits comes up with a spin that not only makes them look like saints, but enables them to pick up a bunch of stock at a bargain basement price they wouldn't have dreamed of getting it at 3 months ago. And all without raising suspicions.

    If they REALLY wanted to do something noble, they'd take the name of the scumbag who founded the company off of everything.
     
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  17. woodsie

    woodsie VIP Whale

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    What suspicions are we talking about? Has it ever been a concern for management to buy stock in the company they work for at any price?

    If I was a shareholder, I'd be happy to see that they had the confidence to put their own money on the line.
     
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  18. joespoolhall

    joespoolhall VIP Whale

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    It's a Wynn- Wynn gesture. Should be good for execs in time and obviously will help workers. Good on them.
     
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  19. andyg99

    andyg99 VIP Whale

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    I don't know... giving up salary in lieu of stock? a lot of times executives make decisions based on stock prices which aren't always employee friendly. I look at this as a non-smoker giving up smoking for lent.
     
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  20. Dean Martin

    Dean Martin VIP Whale

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    They will make money on it "if" the stock is significantly higher. Which it should be but by doing this, they are also putting their wallet where their mouth is and showing their confidence in the company and the industry coming back.
     
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