Head of Wynn Resorts Ltd and seasoned casino magnate Steve Wynn is reportedly having a great start to 2017, thanks to a stock compensation package in the amount of $12.5 million. Namely, the casino chief’s stock infusion might be his biggest payout thus far, thanks to a 2014 compensation agreement.
In 2014, Steve Wynn agreed to have his fixed salary cut from $4 million to $2.5m and to instead receive a part of his incentives in stocks. Per this agreement, he suffered a drop in total payouts in 2015, when he received $17.5 million in total incentives that were paid half in shares and half in cash, due to the company’s struggling performance in the Asian market. But 2016 was obviously a much better year for the company and the casino magnate himself.
Compared to last year, when he received $8.75 million in stocks, in 2017 the total value of his incentive package will amount to $25 million, or the maximum amount permitted by the compensation plan. The increase in payouts is reportedly due to both the Wynn Resorts’ increased adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) as well as the success of the Wynn Palace Cotai which officially opened its doors only in August 2016.
The total amount of shares that Wynn received during the course of last week was 137,468, a portion of which he sold at $90.93 per share for a pre-tax profit of $5.2 million. He is currently the owner of 12 million shares in Wynn Resorts, or 11.9% of the company – an achievement that’s partly thanks to his acquisition of $31.8 million worth of Wynn shares in January 2015. According to estimates, his 11.9% share also brings Steve Wynn around $24 million in company dividends per year.