Inside Asian Gaming

inside asian gaming December 2016 36 the largest bonuses in 2015, with Wynn taking home an additional US$8.75 million. The next largest bonus was Adelson at nearly US$5 million, followed by Carnival’s Arnold Donald at US$4.6 million and then Jim Murren and Ken Alexander at over US$3 million. The average CEO bonus in 2015 was US$1.4 million, a US$300,000 increase from last year. Eight gaming CEOs received no bonus at all in 2015, while 13 received over US$1 million. 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 his US$8.75 million 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 “The gaming industry has been a very successful place to build a fortune for many entrepreneurial CEOs.” Sheldon Adelson Features at Melco Crown, Dr Lui Che Woo at Galaxy Entertainment Group and Sheldon Adelson at LVS. A dip in Wynn Resorts share price dropped Steve Wynn just below the billion dollar mark. That said, the gaming industry has been a very successful place to build a fortune for many entrepreneurial CEOs. TRENDSPOTTING With the slowing of new casino development, what trends should investors be following? Sports betting with the likes of FanDuel and DraftKings will be interesting to watch. The VIP and Junket business will have a profound effect on Asian casino businesses and the advent of the casino REIT will change how 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. More CEOs should have their pay “at risk” in the form of short and long-term incentives and “clawback” provisions in the event financial malfeasance is discovered. Keith Kefgen is CEO and Managing Director of AETHOS Consulting Group. A frequent lecturer on industry related issues, Kefgen has written more than 100 articles on the topics of executive selection, pay-for- performance, corporate governance and executive leadership. Most recently, he published his first book, The Loneliness of Leadership . He can be reached at www.aethoscg.com. Reprinted with permission of Casino Journal