As the coronavirus pandemic forced the closures of the Las Vegas Strip and casinos throughout the U.S. in March, Wynn Resorts CEO Matt Maddox gave up his 2020 salary in exchange for shares in the company.
On Thursday, Maddox voluntarily gave up the stock, as well.
The CEO included those shares as part of a stock grant the company is giving to 240 employees in Boston and Las Vegas for their work in planning, executing, and managing the disruption caused by COVID-19.
In a filing with the Securities and Exchange Commission, Maddox asked the company’s board to cancel his 140,000 shares. They were added to the 176,247 shares awarded to the employees. The company did not disclose the names of the employees, how many are included at each property, or the share breakdown.
The stock, which currently has a value of $0, vest on Aug. 18, 2021, at the value of that day’s closing share price on the Nasdaq. Shares of Wynn closed Thursday at $80.28, which would assume a current value of the shares at almost $14.15 million.
“In recognition of the challenges we are facing and how much the company needs you to stay focused and motivate your team, I’ve asked the board of directors to approve the stock grant that will vest and become your stock at this time next year,” Maddox wrote in a letter distributed to the employees who received the stock. “I want you to be an owner in the company.”
Wynn’s properties on the Strip – Wynn Las Vegas and Encore – re-opened on June 4 following a 78-day closure. Encore Boston Harbor reopened on July 12 after being closed for more than three months.
Wynn paid all of its roughly 13,000 employees during the closures, including their average tips. Maddox, in March, agreed to exchange his $1.9 million annual salary for the stock. Company directors and other Wynn executives gave up between 33% and 100% of their salaries.
In Thursday’s letter, Maddox called 2020 an “unprecedented” year, adding the term “really does not describe the situation at all: this year is treacherous.”
“I know it doesn’t feel right. It doesn’t for me either,” Maddox, who is also a Wynn board member, wrote. “But this is what I do know: it will end, and when it does, I believe we will be booking conventions, filling our nightclubs and theaters, and will return to high occupancy in the back half of next year.”
Maddox will receive 24,501 restricted shares, according to the SEC filing. Chief Financial Officer Craig Billings will receive 13,476 shares and General Counsel Ellen Whittemore will receive 6,585 shares.
“Mr. Maddox’s original incentive grant contained certain performance metrics that are no longer relevant in light of the extremely challenging conditions stemming from the COVID-19 pandemic,” the company said in the SEC filing. “Mr. Maddox asked the Compensation Committee instead to recognize the efforts of top leadership during an extraordinarily difficult time through the retention award.”
Earlier this month, Maddox said the company “had to make some tough decisions about right-sizing our expense structure.” During the second quarter, Wynn Las Vegas and Encore had a collective cash flow of $9 million, which reflected just 26 days of operating.
“We’re probably running weekend occupancy of about 50%, and 30% percent during midweek,” Maddox said on the second-quarter conference call, describing the company’s primarily drive-in customer traffic from California and Arizona, which carries with it a short booking window.
Earlier this year, Wynn completed a 430,000-square-foot expansion to the company’s Las Vegas convention and meeting facilities, both of which are now sitting empty due to conferences and tradeshows canceled due to the ongoing pandemic.
On the call, Maddox said Wynn – companywide – had had roughly 300 employees test positive for coronavirus, about 2% of the 16,750 conducted tests. Maddox said 10 contact tracers on staff determined that the virus was contracted outside the resort in those cases.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
