Presently, it is crystal clear to everyone that coronavirus is destroying the global economy. Every industry is feeling this in some shape and form.
The markets and stock prices are in a state of interrupted freefall and commodities are no safe haven. In that atmosphere, it is no wonder that the casino industry did not have any better luck.
In this field, some stock plummeted as much as 70 per cent in recent weeks. But, even in the hardest of times, the tears in the economy usually yield their spots to an eventual rise.
The question is how long will the slump continue, but its end, barring a complete apocalypse, will happen. This is exactly what the executives at Wynn Resorts are betting on.
They have elected to take shares instead of paychecks for the rest of this year. This follows a similar measure from operators like Genting. There as well, the executives voted on restricting their direct income. The purpose of this is to free up some cash flow for the upcoming period without resorting to layoffs.
Leading from the Top
Wynn Resort announced that the top officials are backing the plan completely. Matt Maddox, the CEO of the operator, is fully on-board with this plan.
He, like the rest of the executives, will forgo 100 per cent of his salary in 2020 in exchange for stocks. Other executives took the same offer. All of them had the flexibility to strike up a balance of stocks and paychecks. They could take on anywhere between 33 and 100 per cent in shares for the next 9 months.
With the savings, the company will try to offset expenses currently going to employee payrolls. The waste majority of those employees, at the same time, is at home.
This is due to the coronavirus pandemic which closed many Wynn facilities, especially in the US. Furthermore, those that are working on and off, like the Macau venues, are earning very little. So, freeing up any cash is essential in the coming weeks and months.
However, at the same time, many are pointing out that the executives have a personal benefit in taking stocks. Most of them earn high salaries and already own stock options. Apart from those who are in present dire need of money – which is likely few if any – stocks are a good bet. If they can hold off on selling these and wait until they return to pre-crash levels, they will make a hefty profit. It might take some time, but the money will be there for them eventually.
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