Penn National CFO steps down, casino company to have new top executive team next year

Friday, September 27, 2019 9:28 AM
  • Howard Stutz, CDC Gaming

Regional casino giant Penn National Gaming will have a new look to its management team next year.

The company said Thursday that Chief Financial Officer William “BJ” Fair would step down March 31, becoming the second top executive to leave the casino operator in recent months. In August, Penn National CEO Tim Wilmott said he would retire at the end of the year. Current Penn Chief Operating Officer Jay Snowden will become CEO on Jan. 1.

Fair, who has been CFO since 2017, joined Penn National in 2014 as chief development officer. In a statement, the company said Fair agreed to stay in his role through the end of the 2020 first quarter, which will allow Penn to conduct a formal search for his successor.

Wilmott said Fair played a role in the company’s transformation to the industry’s largest regional casino operator, with 41 locations in 19 states.

He said Fair “played a significant role in overseeing and structuring the financing strategies” for the company’s acquisitions over the last five years, including the $2.8 billion acquisition of Pinnacle Entertainment, the development of two new Pennsylvania casinos, and the recent launch of Penn’s sports betting and iGaming platforms.

“In addition, during BJ’s tenure, he oversaw the construction of Plainridge Park Casino in Massachusetts, and helped lead our efforts to acquire Tropicana Las Vegas, Margaritaville Resort in Bossier City, Louisiana, and, most recently, Greektown Casino in Detroit,” Wilmott said.

“We want to express our sincere gratitude to BJ for his many contributions to Penn National’s success,” he added.

Fair called his departure “a very difficult decision,” but said the timing centered around the expiration of his contract and “enables me to focus on some recent personal family issues. I am proud of the significant milestones achieved during my time at Penn National.”

The news caught the investment community somewhat off-guard.

SunTrust Bank gaming analyst Barry Jonas said he didn’t “have a negative read on today’s announcement.” Jonas said the timing “makes sense” given the pending CEO change.

According to a Securities and Exchange Commission filing that accompanied the announcement, Fair will receive two years of his base salary as severance payment, as well as a bonus. He will also be subject to a non-compete for two years after his departure.

“We would not be surprised to see him ultimately reemerge whether within the gaming, real estate, or skiing industries given his prior experience and relatively young age,” Jonas told investors in a research note.

The departure was announced after the markets closed. Shares of Penn, traded on the Nasdaq, were down 55 cents or 3.07% to close at $17.35.

Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.