MGM Sets New Pay Packages for CEO Bill Hornbuckle, CFO Jonathan Halkyard
Posted on: August 23, 2022, 02:50h.
Last updated on: August 23, 2022, 04:03h.
In a new regulatory filing with the Securities and Exchange Commission (SEC), MGM Resorts International (NYSE:MGM) revealed new compensation packages for high-ranking executives, including CEO Bill Hornbuckle and CFO Jonathan Halkyard.
Hornbuckle’s new agreement goes into effect on Sept. 1 and runs through Aug. 31, 2026, with an annual salary of $2 million. He’s also eligible for discretionary raises, cash or equity bonuses, and other benefit plans. The accord also calls for extensive equity-based compensation.
Employee shall be eligible for annual equity awards in 2022, 2023, 2024 and 2025 in forms and amounts determined by the Committee in its discretion. It is the Committee’s present expectation that such annual awards will have an aggregate grant-date Accounting Value targeted at $10,000,000,” according to MGM’s Form 8-K filing.
Hornbuckle was named interim chief executive officer in early 2020. That’s when former CEO Jim Murren was named by Nevada Gov. Steve Sisolak to lead the state’s COVID-19 task force. The interim CEO has over four decades of gaming industry experience, and most recently served as chief operating officer and president of Las Vegas-based MGM.
Hornbuckle was also a buyer of MGM shares during the darkest days of the coronavirus pandemic, showing support for his employer’s stock. From the COVID-19 lows through today, MGM stock is up nearly fivefold, with much of that run occurring with Hornbuckle at the helm of the company.
Halkyard Compensation
Halkyard, MGM’s chief financial officer, has a new pay agreement with the casino operator that commences on Sept. 1 and runs through Feb. 1, 2026.
Under the terms of the new pact, he’ll receive a minimum annual salary of $1.1 million, and be eligible for cash and equity bonuses, some of which will be comprised of restricted stock units. He can also receive annual equity awards over the next four years.
“Employee shall be eligible for annual equity awards in 2022, 2023, 2024 and 2025 in forms and amounts determined by the Human Capital and Compensation Committee (the “Committee”) in its discretion. It is the Committee’s present expectation that such annual awards will have an aggregate grant-date Accounting Value targeted at $2,750,000 and that such annual awards will be provided (i) 60%,” according to the SEC filing.
Halkyard joined MGM in January 2021. In his time with the casino operator, he’s overseen massive share repurchases that led to significant reduction in the company’s shares outstanding, as well as efforts to fortify MGM’s cash position — now among the sturdiest in the industry.
Other MGM Stock Odds and Ends
In other MGM equity news, it was reported Monday that Barry Diller’s IAC/InterActiveCorp (NASDAQ:IAC) modestly boosted its stake in the Bellagio operator.
Diller’s company reportedly paid approximately $10 million to buy 283,400 MGM shares at an average price of $35.28.
IAC took a 12% stake, then valued at $1 billion, in MGM Resorts in August 2020. As a percentage of MGM shares outstanding, IAC is by far the casino operator’s largest shareholder. IAC’s investment in MGM is seen as an endorsement of BetMGM and online gaming, with some analysts expecting the partnership to generate more buzz this year.
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Source: casino.org
