Caesars Entertainment paid out on annual stock awards to several executives this week. But the value of the compensation was much lower due to the economic downfall inflamed by the COVID-19 pandemic.
More than 78,000 shares of the casino company were awarded to eight executives. The disclosures were made through filings with the US Securities and Exchange Commission.
- Thomas Jenkin, global president of destination markets – 21,530 shares
- Eric Hession, chief financial officer – 18,105 shares
- Christopher Holdren, chief marketing officer – 13,448 shares
- Monica Digilio, chief human resources officer – 9,187 shares
- Christian Stuart, EVP gaming and interactive entertainment – 5,224 shares
- Richard Broome, EVP government relations – 4,812 shares
- Keith Causey, SVP, chief accounting officer – 3,424 shares
- Michelle Bushore, EVP, general counsel – 2,473 shares
The 78,203 shares were awarded on March 28 when Caesars was trading at a price of $6.85 each, for a total valuation of $535,690.
Caesars Entertainment, along with the entire gaming industry, has suffered greatly as a result of the coronavirus crisis.
On February 20, each Caesars share was valued at $14.63. If the eight aforementioned executives would have received their shares at that price, the total stock awards would have been valued at $1,144,109 – meaning the economic downturn cost the executives $608,419. Caesars has lost value since the stock awards, now at $6.63 – a further 3.2 percent decrease.
Caesars, and its soon to be parent company Eldorado Resorts, both began 2020 with much optimism. Eldorado was trading at nearly $70, but has crashed to $11.69 at the close of Wednesday’s trading.
However, Eldorado said this week that its $17.3 billion acquisition of Caesars will be completed sometime in June. Casino.org reported last week that Eldorado is facing a $2.3 million daily “ticking fee” due to its failure to finalize the massive takeover within a nine-month period from when the two casino operators came to initial terms.
On Sunday, President Donald Trump announced the federal government’s coronavirus guidelines were being extended to April 30. And many states – including Nevada – are following suit and additionally ordering all non-essential businesses to remain closed through at least the end of the month.
Every casino Eldorado and Caesars owns is currently closed for the foreseeable future. The American Gaming Association (AGA) says the pandemic has left 616,000 casino employees out of work.
Eldorado currently owns and operates 23 properties across the US. Caesars operates 53 properties in the US and several international markets. Many of Caesars’ brick-and-mortar assets are owned by VICI Properties, its real estate investment trust.
Once united, the new company – which will retain the Caesars name and brand – will be the largest gaming operator in the US.
Eldorado’s takeover includes acquiring all outstanding shares of Caesars at a cost of $12.75 each. The purchase includes $8.5 billion in cash and equity, and the assumption of $8.8 billion in Caesars debt.