Published on: April 28, 2026, at 11:43h.
Updated on: April 28, 2026, at 11:43h.
- Penn is set to significantly reduce CEO Snowden’s compensation for 2026.
- The compensation committee suggests a 41% decrease in his long-term incentive plan (LTIP) and an overall reduction of 31% in total compensation.
- Penn’s stock has experienced an 80.41% decline in the last five years.
Penn Entertainment (NASDAQ: PENN) is planning considerable cuts to CEO Jay Snowden’s pay structure for 2026.
After discussions with key shareholders, Penn’s compensation committee is recommending significant modifications to Snowden’s long-term incentive plan (LTIP), following investor pushback against a proposed 2025 compensation package worth $25.3 million. The revised structure may allow the CEO to earn as much as $17.4 million this year.
“We have reduced the target grant value of the CEO’s equity awards for 2026 by $7.87 million, representing a 41% decrease in LTIP opportunities and a 31% reduction in total target direct compensation compared to 2025, resetting his overall pay to 2023 levels,” stated a proxy filing with the SEC. “This decision followed a review of the peer group and a strategic realignment, made in consultation with the Committee’s independent compensation adviser and with the agreement of CEO Jay Snowden.”
Snowden has led the largest regional casino operator by property count since January 1, 2020.
Shift to Performance-Based Compensation for Snowden
Over the last five years, Penn’s stock price has plummeted by 80.41%, eliciting concern from investors who criticized the board for awarding what many deemed excessive compensation to Snowden amid stock price challenges.
Numerous shareholders publicly condemned Snowden’s past pay schemes, citing his role in several costly mistakes in the online sports betting sector, which has adversely impacted cash flow and put pressure on stock prices.
Penn is moving towards a performance-driven pay model, including performance stock units (PSUs) linked to total shareholder return (TSR), a standard practice in the gaming industry.
“Starting with the performance cycle from 2026-2028, the PSU grant will depend on achieving a cash flow from operations target (100% financial metric), with a relative TSR payout modifier (±20%) measured against the Russell 3000 Casino and Gambling Index,” according to the proxy document. “This incentive framework aims to boost cash generation across both our retail and digital divisions, promote disciplined capital allocation, and align our long-term financial performance with shareholder interests. These changes to the LTIP also cater to our shareholders’ desire for varied metrics across both short- and long-term incentive strategies.”
Penn Revises 2026 Compensation Peer Group
It is typical for executives at publicly traded entities to have their pay packages shaped by industry benchmarks. In line with this practice, Penn’s compensation committee has updated the peer group that influences Snowden’s and other executives’ compensation plans.
Notable changes include the removal of Electronic Arts, a live events company, a film studio, and a satellite radio provider, while adding two cruise companies, two hotel chains, and two gaming firms—Churchill Downs (NASDAQ: CHDN) and slot machine manufacturer Light & Wonder (LNW).
Churchill Downs serves as a relevant comparison for Penn’s compensation as both operate regional gaming venues in overlapping markets.