Web Site Analytics
MobileRJ | RSS Twitter Twitter FacebookFacebook E-mail Alerts
Home subscribe manage Las Vegas Review-Journal
  Jobs Cars Homes Shopping Travel Weddings Golf Best of Las Vegas Photo   Search:

RECENT EDITIONS
Sun Mon Tue Wed Thu Fri Sat

Breaking News
Oct. 20, 2008
Copyright © Las Vegas Review-Journal

MGM Mirage eliminates cash bonus program for the year

By HOWARD STUTZ
REVIEW-JOURNAL

MGM Mirage told its workforce today that it was eliminating its cash bonus program for the year, which is based on achieving a certain level of profitability.

“It is unlikely we are going to meet those goals this year,” MGM Mirage spokesman Gordon Absher said.

Most Popular Stories
  • Motorcyclist killed in crash on Blue Diamond
  • Clark County man dies of H1N1 virus
  • Motorcyclist killed in collision with CAT bus
  • Motorcyclist killed in crash with SUV at Durango and Sahara
  • One man killed, two others wounded in shooting
  • 2-year-old boy found in pool dies
  • TV pitchman Billy Mays found dead at home
  • Substitute teacher arrested on child porn charges
  • I-15 motorists facing another big road project
  • Woman arrested, charged in drowning of daughter




    • The company’s cash bonuses differed for all employees and the company did not say what the triggering points were for each level.

    Absher said the casino operator wouldn’t say how much it was saving by eliminating the bonus program for 2008.

    Last week, MGM Mirage said it was leaving the Nevada Resort Association as a cost-cutting move.

    “We feel it is only fair to inform employees of this situation as early as possible, rather than wait until the end of the year and the point when they would normally receive a regular cash bonus,” Absher said.

    “This is not a move to husband cash. It is the result of cash bonus program triggers not being met due to business performance levels.”

    MGM Mirage has been hit by declining revenues and declining net income in 2008. The company’s stock price has fallen from a 52-week high of $95.66 on Oct. 29 to Monday’s close of $13.83, down $1.17 or 7.8 percent on the New York Stock Exchange.

    Absher said bonuses will be eliminated for all employees, from the top levels of the corporate structure on down.

    According to documents filed with the Securities and Exchange Commission, only three of the company’s top seven compensated executives received cash bonuses in 2007. Chief Financial Officer Dan D’Arrigo earned a bonus of $390,000, general counsel Gary Jacobs was paid a bonus of $350,000 and Chief Administrative Officer Aldo Manzini earned a bonus of $940,000. However, executive compensation includes other forms of payment, including stock awards and other incentive payments.

    MGM Mirage Chairman and Chief Executive Officer Terry Lanni earned $12.7 million in total compensation in 2007, which included $2 million salary.

    He was not paid a bonus, but collected $10.7 million in various stock appreciation rights award, non-equity incentive compensation and other compensation.

    Absher said non-equity incentive compensation is also tied to profitability performance and was going to be eliminated for 2008.

    “That category was unlikely to meet the criteria,” Absher said.

     

    Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

    Newsvine Digg Fark Technorati reddit StumbleUpon del.icio.us Slashdot Propeller Mixx Furl Twitter MySpace Facebook Google Bookmarks Yahoo! Bookmarks Windows Live Favorites Ask MyStuff myAOL Favorites

    Leave Your Comment 14 Reader Comments
    Terms & Conditions
    The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

    Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
    Current Word Count:

    Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

    VegasSmitty wrote on October 24, 2008 12:54 PM: Bring the mob back, at least they shared the wealth.


    Glad I retired wrote on October 21, 2008 01:41 AM: Heres one for ya, Harrahs Laughlin just canned an employee with 38 years of service! Scum sucking b*s*a*d*s.
    They will do ANYTHING to get their bonus checks..Mext the rumor mill has it their "bonus" checks will get the axe..God, I'm so glad I retired from there in time...Harrah's Sucks!!!


    Donald Trump wrote on October 20, 2008 10:49 PM: These guys are a real joke. All that debt and phoney earnings and now they are left holding the bag. Management should be arrested for selling all of their stock earlier this year.

    That blind bat Steve Wynn is a world class criminal and Terry Lanni isn't too far behind him. Both are masters at living off of other people's money.

    Steve Wynn is scum and basically sets up his IPO's in order to rape the public.

    What a disgraceful group of people these thugs are.

    Regards,

    Donald


    the playa wrote on October 20, 2008 10:24 PM: I'm a Happy union construction worker@ city center! Let's take a look at my union pension shall we? I joined when I was 25,when I'm 50 I'll have 25 years in at $200 per month for every year I worked for retirement-that's $5000 per month or $60,000 per year for the rest of my life! At $20.00 per month dues out of my pocket-you are right dummies-unions are terrible! Go ahead and keep your 401k-I won't need it!


    Happy Employee of MGM Mirage. wrote on October 20, 2008 09:49 PM: I love reading posts from uneducated people. I am a union member. I have worked at Bellagio for 10 years. I havent receieved ANY pay cut.I have my union to thank for that. The people who cry against unions, want to BE in unions. They wish they had what we have. Thank God for our Union. Otherwise, Like the Stations, we would have had our work week reduced to 1 or 2 days by now.


    terry lanni wrote on October 20, 2008 08:58 PM: Ha-HA peasants-I got mines!


    kenodave wrote on October 20, 2008 08:28 PM: I want to hear the same news for all gaming companies, private and public. Every casino employee has had some reduction in pay, be it cut hours, reduced benefits and perks or worse yet, loss of job. It is only befitting that the executives should also be included in reduced salary and bonuses. They take the credit when profits are up, they should also shoulder the blame when profits are down.


    Jen wrote on October 20, 2008 08:16 PM: Don't worry! At least McCain will protect these guys from taxes!!!


    Independent wrote on October 20, 2008 07:50 PM: This is the big news?????

    Wow, the revenue is down. Of course, they shouldn't get any bonus.

    It would be news if they got the bonus.


    D Jones wrote on October 20, 2008 06:21 PM: @ Scam,
    Thanks for the figures. I was going to say I bet the suits will be taken care of. Greedy b*st*rds.


    Read All Comments