- Legal States
Yasmin Moore May 23, 2022 3 min read
Wynn Resorts Executives Exchange Salary for Shares
Several members of Wynn Resorts’ leadership team have opted to get a reduced salary in exchange for shares in the company. This is yet another effort to boost Wynn’s damaged stock.
Executives Pick Shares Over Cash
The most notable executive to reduce his salary was none other than Craig Billings, Wynn Resorts’ chief executive officer. According to the details of Form 4 filings with the Securities and Exchange Commission, Billings chose to take 35% less in cash for the remainder of the year. Instead, the CEO will get the same value in Wynn Resorts limited common stock until December 31. Billings’ stock will be exercisable on December 31 this year and is set to expire on May 11, 2025.
Billings has served as the company CEO for three months now and is setting an example for other high-ranking workers. Notable directors and executives followed the move and decided to waive a part of their salary in exchange for stock.
Director Darnell Strom decided to take 33% less in cash and take 475 shares instead. Ellen Whittemore, EVP and general counsel at Wynn, followed suit. She also reduced her salary by 33% in exchange for 10,383 shares. Julie Cameron-Doe, the current chief financial officer, did the same and reduced her salary by 33%.
Philip Satre, Betsy Atkins and Winfred Webb, on the other hand, are three directors who waived the entirety of salaries for the remainder of the year in exchange for 3,251, 1,677 and 1,643 shares respectively.
An Old Trick to Boost Wynn’s Stock
The decision to trade a part of one’s salary for stock is not a first for the company’s executives. In 2020, Matt Maddox, the former chief executive officer, also traded his salary for equity. This move came as Wynn Resorts’ stock was struggling amid the disastrous COVID-19 pandemic. Back then, other directors also followed suit, mirroring the current situation.
The decision to exchange his salary for equity demonstrated Maddox’s confidence that the share price will eventually recover. This is also what the company needs right now as the struggling Macau betting industry continues affecting Wynn’s business negatively. Although analysts believe that the introduction of digital RMB may rebind the sector, the situation remains dire.
The executives are not the only ones who trust that the company will eventually recover and surpass its pre-COVID levels. David Tepper, owner of the Carolina Panthers, recently invested in Wynn and Las Vegas Sands, hoping that the operators will heal.