MGM Mirage employees to miss bonus

[doublediamonddlx]

(Anyone know what the typical bonus is for hourly employees???)

MGM Mirage employees to miss bonus

Cash program out because company 'unlikely' to meet profit goals for 2008

By HOWARD STUTZ
REVIEW-JOURNAL
MGM Mirage told its workers Monday that it was eliminating this year's cash bonus program, which is based on achieving a certain level of profitability.

"It is unlikely we are going to meet those goals this year," MGM Mirage spokesman Gordon Absher said.

The company's cash bonuses differed for all employees and the company did not say what the triggering points were for each level. Absher said the casino operator wouldn't say how much it was saving by eliminating the bonus program for 2008.

Last week, MGM Mirage said it was leaving the Nevada Resort Association as a cost-cutting move.

"We feel it is only fair to inform employees of this situation as early as possible, rather than wait until the end of the year and the point when they would normally receive a regular cash bonus," Absher said. "This is not a move to husband cash. It is the result of cash bonus program triggers not being met due to business performance levels."

MGM Mirage has been hit by declining revenues and declining net income in 2008. The company's stock price has fallen from a 52-week high of $95.66 on Oct. 29 to Monday's close of $13.83. It fell $1.17, or 7.8 percent, Monday on the New York Stock Exchange.

Absher said bonuses will be eliminated for all employees, from the top levels of the corporate structure on down.

According to documents filed with the Securities and Exchange Commission, only three of the company's top seven compensated executives received cash bonuses in 2007. Chief Financial Officer Dan D'Arrigo earned a bonus of $390,000, general counsel Gary Jacobs was paid a bonus of $350,000 and Chief Administrative Officer Aldo Manzini earned a bonus of $940,000.

Executive compensation includes other forms of payment, including stock awards and other incentive payments.

MGM Mirage Chairman and Chief Executive Officer Terry Lanni earned $12.7 million in total compensation in 2007, which included $2 million salary. He was not paid a bonus, but collected $10.7 million in stock appreciation rights award, nonequity incentive compensation and other compensation.

Absher said nonequity incentive compensation is tied to profitability performance and was going to be eliminated for 2008.

"That category was unlikely to meet the criteria," Absher said.

[jay]

The boys from Dubi dumped in 3.2billion (thats a B) into the stock when it was $85.00 and gave MGM the rights to build a casino for 4 major projects.
The World and Palm Island are two of the existing projects and two more massive complexs are in the works for which MGM has the exclusive rights.

The stock slipped to 65, and I figured it was a good time to buy in, heck the smart money just dumped in billions at 85.
I have watched my investment shrink to about $11.00 (Friday was an up day it moved .35c into the positive and closed at 11.20).

Having just been to Vegas. The Monte Carlo (a MGM property) is right next to the CITY CENTER property under construction. Construction starts at 4.00am, and its loud.
I got the room at 110.00/night.... which is not much of a discount and a horrible price for a room with all that noise.  Had I not had 2 comped nights I probably would not have been willing to pay this rate. The Venetian is giving aways suites for $119 right now.

While I don't like to see hard working wage earners hurt, but if they were giving bonus's to staff and management when the investors are being hurt it would be a shame.
So far this is the first responsible move that I have seen MGM make. They need to get a decent marketing plan together and bring in people. One of the stats that I heard is that 1/3rd of vegas revenue is non-gaming. They should be putting tours together for some of the non-gaming things like Red-Rock Canyon, Pinball Museum etc and try and bring in some people that are not being already marketed too. If you keep them busy by day they will inevitably end up in your restaurants and casinos by night. Most people play at least moderately where they stay.