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The Steve Takes A Huge Pay Cut

By Chuckmonster on Tuesday, 20th January 2015 3:48pm
  » filed under Las Vegas  comments: 7

   

In addition to filed a flurry of Form 4's with the SEC today, outlining a gonzo stock compensation for the four top executives of the company (Kim Sinatra, Linda Chen, Matt Maddox and The Steve), Wynn Resorts announced a new employment employment package for The Steve, extending his contract until October 2022, three months and 5 days before his 81st birthday.

The Amendment provides for:

(a) an extension of the term of the Employment Agreement for two years through October 24, 2022,

(b) a decrease in base salary from $4.0 million to $2.5 million per year, and

(c) termination of the current Aircraft Time Sharing Agreement dated as of November 25, 2002, as amended. Mr. Wynn and the Company entered into a new Aircraft Time Sharing Agreement, dated January 15, 2015 (the “New Aircraft Time Sharing Agreement”). The New Aircraft Time Sharing Agreement, among other things, provides that Mr. Wynn will reimburse the Company for certain expenses for any of his personal use of Company aircraft. In connection with the New Aircraft Time Sharing Agreement, the Compensation Committee of the Board of Directors of the Company approved a $250,000 credit per calendar year that Mr. Wynn may use to offset his reimbursement obligations, starting with the 2015 calendar year. The Amendment and New Aircraft Time Sharing Agreement are effective as of January 1, 2015.

In addition to cutting his salary by a $1.5 million, they're taking away the company car, ahem, Gulfstream jet. Next thing you know, they're going to scrap the recording studio under the EBC pool and move Steve's office down there.

Perhaps this is a proactive adjustment based on the Macau earnings shit show? The previous Form 4 filing states that Steve was given 67,727 shares at a strike price of $0.01 (market value $9,999,891.55) of which he cashed out 28,412 shares instantly yielding $4,195,091.80, minus the $9.99 commission from eTrade.



Tagged: steve wynn   wynn resorts   





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Comments & Discussion:

Lower the salary now, so the next person in the position after Steve retires doesn't expect so much. There are any number of reasons why this might make financial sense for all parties.

I can see the discussion at home already:

Andrea: Steve! What happened to the toilet paper? I don't know who this Scott guy is but his TP is like sandpaper.

The Steve: Oh yeah, meant to tell you about that. This paycut has put us on a budget my dear. We all have to make sacrifices. If you want Charmin, you're going to need to start kicking in on the finances.

I guess that this means he'll have to cut back on his Koons sculpture purchases....

agree w/ parchedearth.
Not only that, it would be informative to know terms of the "old" Aircraft Timesharing Agreement. The allowance falls well within the salary adjustment, though given the operating costs it could be possible to burn through that quarter mil pretty quickly. (And I thought he had a 737...) Note also this is personal use -- any "business-related" trips to Macau, the east coast, etc still expensed, you'd think.

And those stocks... again gotta agree w/ parchedearth.

"...it would be informative to know terms of the "old" Aircraft Timesharing Agreement..."

...but only for the sake of comparison. Thanks very much Chuck for digging up this sort of fine-grained detail! The reason this place is so great....

Hmmm...wasn't it 'ole Stevie that said how much he loved the commies in China because they were even more reliable as business partners than the US? Guess their on-going crack-down on corruption in Macau is startin' to trim his sails....

Has anyone seen Steve's red Swingline stapler?



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