Wynn Resorts Issues $14.5 Million In Stocks to Retain Top Executives

Wynn Resorts Issues $14.5 Million In Stocks to Retain Top Executives

Casino giant Wynn Resorts recently took a giant leap to retain its top executives. The compensation committee of the company’s board of directors recently signed off on issuing 176,247 shares. The money will be used to 240 employees through 2020 and much of 2021.

New equity grant revealed in Form 8-K

The new equity grants for retaining employees was revealed in Form 8-K filing of the company with the US Securities and Exchange Commission (SEC). Based on the closing Wynn resorts stock price on Friday, the 176,247 shares are worth about $14.59 million. These Retention Awards were presented to approximately 240 of the top executives of the company in North America as on August 18. 2020. The vest on the one-year anniversary of the grant date.

Wynn Resorts Issues $14.5 Million In Stocks to Retain Top Executives

The recipients of the shares must be employed with the company till August 18, 2021. The company’s CEO Matt Maddox is receiving 24,501 restricted shares while its CFO Craig Billings will be getting 13,746 shares. Ex-Vice President and General Counsel Ellen Whittemore will be given 6,585 shares.

No dilution for existing investors

In general, when new stock is generated as a secondary offering as a part of the employee compensation programs, the current investors get diluted because of increased share supply in the market. However, Wynn was successfully able to avoid dilution because of CEO Maddox. He was to be awarded 140,000 shares as a part of an old employee agent but Maddox refused to take the rewards.

It was finally determined that the clauses in the previous agreement did not hold valid in the ongoing pandemic situation. Maddox also decided to forego his cash salary for this year. He will be paid entirely in the equity of the company. This has helped protect the company’s top brass while also ensuring that there is no dilution in shareholder value. Note that Wynn stock price has gained by 131% since March after hitting new lows. Some other executives in the company have also made changes to their salaries, making anywhere between 33% to 100% cuts in compensation.

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Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.