Steve Wynn is taking a pay cut of 37% as reported in a filing with the Securities and Exchange Commission. Wynn Resorts and Las Vegas Sands, which have many assets in Macau, have faced problems with China’s crackdown on gambling because of excess and the corruption. In addition, the Chinese economy is in a slowdown which is severely impacting the casino business in Macau.
Steve Wynn’s salary was cut from $4 million annually to $2.5 million, but his position as CEO was extended another 2 years until October 24, 2022. He has to reimburse the company for certain expenses, including use of the private aircraft, although he still gets $250, 000 credit each year he can use to offset his reimbursement obligations.
Forbes listed Steve Wynn last year as one of the wealthiest people in Nevada, with a net worth of $3.5 billion. Despite problems in Macau, Wynn plans to open another casino there, as well as one close to Boston. Shares of peer Las Vegas Sands were trading in the $70 range early in 2014 but ended up in the $40-$50 range. Wynn resorts shares had a similar decline, falling from $249 at the beginning of 2014 to $150 per share. However, only one factor has to clear up before shares rebound; perhaps if China ends its crackdown on casinos or if the economy perks up slightly, shares will snap back.