Las Vegas Casino's stocks fall ... anxiety about the softening economy! Las Vegas Casino's industry started to feel the anxiety over the declining economy and continuously down-sliding profits.
MGM Mirage told its workers Monday that this year's cash bonus program will be eliminated as direct result of lacking to achieve a certain level of profitability.
"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.
For Las Vegas the Casinos, Gambling and Entertainment industry is the major factor in the local economy. Any sign of slowing down or declining in profits is a great concern at all levels... but MGM workers were the first to take the blow... It the past it was a happy tradition in MGM company for receiving the bonus checks at the end of the year.
Interesting to mention: MGM Mirage Chairman and Chief Executive Officer Terry Lanni earned $12.7 million in total compensation in 2007,($2 million out of the total represents his salary). But he collected $10.7 million in stock appreciation rights award, nonequity incentive compensation and other compensation... A bonus was not included.
MGM Mirage has been hit by declining revenues and declining net income in 2008.
According to "Review Journal" Oct. 24, 2008 : " Shares of MGM Mirage slid $1.59, or 12.78 percent, to close at $10.85. The stock reached a more than seven-year low of $9.75 earlier in the session. 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." Read more>>>
On an other note check the gaming industry contribution to the Presidential Campaign for McCain's...
- MGM Mirage Chairman and Chief Executive Officer Terry Lanni, collected at least $500,000 for the campaign, according to OpenSecrets.org
- Wynn Resorts Chairman and CEO Steve Wynn has raised between $250,000 and $500,000
- Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson and company President Bill Weidner have each raised between $100,000 and $250,000
Read more >>> GAMING AND THE PRESIDENTIAL ELECTION
Gambling is still a luxury, in our economy with tightening budgets most people will cut out thier casino visits. Unfortunately there are a few that depend on it, and it has alterred many lives. This industry in Las Vegas has been affected over the past couple of years.
I do think it is amazing how much the executives and CEOs make that run these companies. Im not opposed to gambling. I did some at the Wynn Casino recently in Maccau and did very well paying for several nights of my vacation. Its unfortunate that the decrease will affect the local economy and local workers.
Today the stock price for Las Vegas Sands Corp., has plunged to all time low. The share price dropped $2.51, or 22 percent, to $9.15 before the start of trading... anyway is not a good news for Las Vegas.