Amid stepping down, one of MGM Resorts’ most iconic CEO, Jim Murren, is about to collect close to $32 million, a recent filing to SEC revealed.
Jim Murren to Collect Nearly $32m in Bonuses, Salary, and Fees
According to a filing to the Securities and Exchange Commission (SEC), Jim Murren, MGM Resorts’ boss who announced his retirement earlier this week, will collect as much as $31.9 million in bonuses, stock, salary, consultation fees, and severance. All of this is going to be finalized before 2021 is out.
Mr. Murren oversaw one of the largest casino and hospitality companies in the world for as many as 12 years and was essential to the resolution of multiple challenges MGM faced, not least of all the October 1, 2017 shooting when a gunman killed 58 people and wounded hundreds, having booked a room at the Mandalay Bay. MGM finally agreed to a settlement payment worth $800 million.
His decision to step down is part of a new business model that marks the turning of a new page for MGM. Mr. Murren confirmed that himself, and he further added that he would be assisting MGM on its transition to a new CEO.
He was also one of the largest proponents of sports betting and the potential windfall for the hospitality and casino industries. Under him, MGM signed deals with the NBA, MLS, NHL and NFL.
Commenting on the current status of business, he said that MGM had never been in a better position, and his decision to step down was to assist the company move forward into a now new way of doing business that relies less on real estate portfolio and more on branding and product.
Roland Hernandez also spoke about the transition and particularly Mr. Murren, giving him credit for transforming MGM into a “global entertainment company.”
Mr. Murren was crucial to obtaining funding from banks at a time when MGM Resorts were rapidly falling through. Yet, he stood his ground convincing Kirk Kerkorian and Senate Majority Leader Harry Reid of Nevada to pull the necessary money together and let MGM beat on – a move that has paid off despite pessimist outlook at the time.
Construction and Acquisition
So far, MGM has relied on construction and acquisition to develop its portfolio, but moving forward this should change, as was already noted. Yet, Mr. Murren is the man behind many pivotal developments, including the MGM National Harbor in Maryland, which cost MGM $1.2 billion to complete.
MGM Springfield in Massachusetts was another recent project that cost the company $960 million and MGM further acquired casinos in New York and Ohio, expanding its national footprint. Parting from the company, Mr. Murren that his decision did not come lightly, but it was what was best for MGM moving forward.
MGM Resorts International (NYSE:MGM) closed the week down 0.88%.