IAG DECEMBER 2016 WEB - page 36

inside
asiangaming
December2016
36
the largest bonuses in 2015, with Wynn taking home an additional
US$8.75million.
The next largest bonus was Adelson at nearly US$5 million,
followedbyCarnival’sArnoldDonald atUS$4.6million and then Jim
Murren andKenAlexander at overUS$3million.
The average CEO bonus in 2015 was US$1.4 million, a
US$300,000 increase from last year. Eight gamingCEOs receivedno
bonus at all in 2015, while 13 receivedoverUS$1million.
In addition to an annual bonus, long-term incentive plans
(LTIPs) were a significant portion of overall CEO pay. Steve Wynn
topped the list with hisUS$8.75million stock grant, while 17 CEOs
received an equity grant worth over US$1 million. The average
LTIP value in 2015 was nearly US$2.1 million, a drop of nearly
US$400,000 from last year.
Who are the richest CEOs in the gaming industry based on their
company stock ownership? Three billionaires include Lawrence Ho
“Thegaming industryhas
beenavery successful place
tobuilda fortune formany
entrepreneurialCEOs.”
SheldonAdelson
Features
atMelcoCrown,Dr Lui CheWooatGalaxyEntertainmentGroupand
SheldonAdelson at LVS. Adip inWynnResorts share price dropped
SteveWynn just below the billiondollarmark.
That said, the gaming industry has been a very successful place
tobuild a fortune formany entrepreneurial CEOs.
TRENDSPOTTING
With the slowing of new casino development, what trends should
investors be following? Sports betting with the likes of FanDuel and
DraftKingswill be interesting towatch. The VIP and Junket business
willhaveaprofoundeffectonAsiancasinobusinessesand theadvent
of the casinoREITwill changehow casino real estate is capitalized.
In relation to CEO pay, investors should be following national
trends that see a tighter link between overall pay and company
performance.MoreCEOs shouldhave their pay “at risk” in the form
of short and long-term incentives and “clawback” provisions in the
event financialmalfeasance is discovered.
KeithKefgen
isCEOandManagingDirectorofAETHOSConsulting
Group. A frequent lectureron industry related issues, Kefgenhaswritten
more than100articleson the topicsof executive selection, pay-for-
performance, corporategovernanceandexecutive leadership.Most
recently, hepublishedhisfirst book,
TheLonelinessof Leadership
.He
canbe reachedat
.
Reprintedwithpermissionof
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