A look at Wynn’s winners…

May 2, 2012

The lucky streak for casino executives continues, as demonstrated by the 10-K/A that Wynn Resorts Ltd. (WYNN) filed yesterday.

Now normally, as footnoted readers know, the most “entertaining” information about compensation and perks comes in the form of a proxy. But Wynn’s March proxy filings (a PRE 14A and a DEFA 14A) focused solely on the company’s efforts to oust director Kazuo Okada from the Board. Add to that the recent news that Wynn just got Macao’s approval to build a 51-acre casino resort in the Cotai district (a development that Chairman and CEO Steve Wynn called “the single most important project in the history of Wynn Resorts”), and the lavish compensation and perks that Wynn’s executives got in 2011 just might escape notice altogether.

Except they’re simply too juicy for us to let that happen.

Fiscal year 2011 was a good one for Steve Wynn, whose total compensation rose by almost $2 million to a healthy $16.47 million. Of that, his salary accounts for only $3.87 million – not bad considering it’s nearly $929,000 higher than he got in FY 2010. But his salary is a pittance when compared to the two – yes, two – bonuses that he got. His first bonus was for $2 million; but his second – the “non-equity incentive plan compensation” bonus – was for more than $9.06 million.

Wynn got another $1.5 million in the form of “Other Compensation,” that nebulous category that discloses perks no self-respecting executive wants to pay for himself. The biggest chunk of that was the $910,345 worth of personal flying time on the company’s aircraft. There was also $503,831 worth of usage from a company-provided villa (which makes the $98K that the daughter of rival casino magnate Sheldon Adelson spent last year seem like a bargain); and $71,561 in merchandise discounts.

Some of the other named executive officers fared well, also. For example, Chief Operating Officer Marc Schorr’s $8.11 million total compensation package included $1,625,000 of accrued cash dividends related to unvested restricted stock, $387,982 personal use of the company’s aircraft, and $99,047 in merchandise discounts. And Linda Chen, Wynn’s President of International Marketing, whom we wrote about a couple of years ago and who got a $10 million retention award last year, got $1.3 million in accrued cash dividends on unvested restricted stock, plus housing and other living expenses in Macau of $51,666 as part of her $5.85 million total compensation package.

Whether or not shareholders care about the fancy perks they’re giving Wynn’s executives is unknown. But with the stock price trading 8.9% lower than it did a year ago, they might care more than they did when they were winners, too.

Image source: Las Vegas Hotel on the strip at night, via Shutterstock

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