Posted on: June 4, 2023, 08:41h.
Last updated on: June 4, 2023, 08:41h.
Wynn Resorts (NASDAQ: WYNN) CEO Craig Billings signed a four-year contract extension to remain at the helm of the casino operator and received a healthy raise.
The Las Vegas-based gaming giant revealed details of the “Billings Amendment” in a Form 8-K filing with the Securities and Exchange Commission (SEC) last Friday.
The Billings Amendment, which is effective as of June 1, 2023, extends the term of Mr. Billings’ employment agreement through June 1, 2027 and also provides for the following compensation changes: (i) an increase to his annual base salary from $1,800,000 to $2,000,000, (ii) an increase to his annual target bonus from no less than 200% to no less than 250% of his annual base salary, (iii) an increase in the target value of his annual equity grant of restricted stock from 375% to 410% of his annual base salary,” according to the filing.
Billings took over as chief executive officer on Feb. 1, 2022, replacing Matt Maddox. Prior to that, the Columbia Business School graduate served as chief financial officer of the gaming company and chief executive officer of Wynn Interactive. All told, he’s been at Wynn for about six-and-a-half years.
Billings Steadying Influence for Wynn Investors
While his predecessor Maddox was a steadying influence at Wynn in the face of sexual misconduct allegations against founder and former CEO Steven Wynn and during the early days of the coronavirus pandemic, Billings has played a similar role among analysts and investors.
While Wynn shares slumped over the course of 2022 due to lingering COVID-19 restrictions in Macau, the stock is higher by nearly 22% year-to-date and today resides well above where it traded the day Billings took the top spot at the gaming company.
Under Billings’ stewardship, Wynn’s three domestic venues have set revenue records, providing some ballast to the stock as investors waited on a Macau rebound.
Last month, the operator announced the return of a quarterly dividend that was suspended during the early days of the pandemic — a move rival Las Vegas Sands (NYSE: LVS) has yet to unveil.
Under Billings, Wynn Thinking Big
When Billings ascended to the top executive role at Wynn, the company’s portfolio was comprised of a pair of Macau casino resorts, Wynn and Encore on the Las Vegas Strip and Encore Boston Harbor. That remains the case, but that won’t be the case for long.
Under Billings’ leadership, Wynn struck first in the United Arab Emirates (UAE) — one of the most coveted markets in the world. The operator’s Wynn Al Marjan Island is scheduled to open in early 2027 as the UAE’s first casino hotel and it could generate up to $600 million in earnings before interest, taxes, depreciation, and amortization (EBITDA).
In partnership with Related Cos., Wynn is also pursuing a New York City casino license. Recent development there indicate the company could be in a stronger position than originally anticipated.
