Inside Asian Gaming

INSIDE ASIAN GAMING | November 2012 16 Market Outlook A fter a slower than expected recession recovery, the US gaming industry is beginning to see signs of optimism, leading towards an economic rebound. Casino revenues have been increasing along with a stronger domestic and international presence. Commercial casinos are now in 22US jurisdictions and companies have also begun serious developments in emerging international markets. These increases have produced a noticeable impact on executive compensation for certain gaming leaders; however, others are sitting at the table with a short stack. Our annual review of gaming CEOs compared 2011 compensation in relation to stock performance, EBITDA growth and market capitalization over a three-year period. The results are expressed in our HVS Value Index, which reveals whether each CEO was over- or underpaid based on performance. After two years of holding the top spot in the Top HVS Value Index, Full House CEO Andre Hilliou comes in second to Las Vegas Sands (LVS) CEO Sheldon Adelson, who moved up from the No. 12 ranking last year. According to our analysis, Mr Adelson was underpaid by 93.6%, or approximately $13 million. The LVS stock price rose 228% over the survey period, while 13 other gaming stocks improved from 2010 to 2011. Entertainment Gaming Asia had the largest stock appreciation with a 272% increase. Salary and Bonus The average base salary for a gaming CEO was US$776,000, a 13% increase over 2010. Seven CEOs had a base salary of $1 million or higher with Stephen Wynn leading the group at $2.95 million. The average bonus Leaping Forward US gaming companies up the ante in international markets and CEO compensation By Keith Kefgen, Lacey Hagen and Mandeep Singh, HVS Executive Search