How do you turn a $100 million savings into a $92 million one? Leave it to Caesars Entertainment CEO Gary Loveman, that’s how. If you’ve noticed that the food quality at The Rio‘s Carnival World Buffet has declined (the “New York Steak” at our last visit was downright rancid) or that the balloon marquee in front of Paris-Las Vegas is almost completely denuded of paint, take comfort in the thought that high-ranking Caesars execs are being richly remunerated for the continued degradation of the company’s assets. That’s to say nothing of strong-arming the workforce by rescinding cash awards for good performance or trying to confiscate dealers’ tips. (Regarding the former, Caesars’ tribunes were miffed that the plebians were spending their extra lucre “on gas and groceries.” The effrontery of the rabble!)
Caesars may be almost $19 billion in debt and lost “only” $147 million in 1Q11, but that didn’t stop Loveman from showering almost $8 million on court favorites like CFO Jonathan Halkyard (right). Nor did Loveman neglect himself, shoving $1 million into his own pocket. That’s considerably more than was received by Halkyard and two divisional presidents combined. Of course, that is the sort of leading-by-example we’ve come to expect from a CEO who wants the public (and rival casinos) to pony up so he can have a vanity arena out back of Imperial Palace. Is it that far-fetched to suggest that Loveman has a boner for a Flamingo Road sports stadium because he’d be able to attend a couple of additional games by the Boston Celtics, of which he is a minority owner?
From the start to (eventual) finish, this whole LBO caper at One Harrah’s Court has been grabbing as much for Number One while the grabbing is good — and even when it isn’t — and to hell with the company. Caesars’ current, sorry estate was a thoroughly predictable outcome. However, with no pesky shareholders around anymore, there will be scant complaint about the degeneration of the former Harrah’s Entertainment into a personal piggy bank for Loveman’s cronies. The crowning hilarity was Loveman appending to his signature to a CEO petition urging Uncle Sam not to default. That’s damn funny coming from a guy who kept the banks at bay with the ominous specter of a Caesars debt default. He’ll be here all week, folks … and for the foreseeable future, I’m afraid.
Caesars has no monopoly on greed, either. MGM Resorts International CEO Jim Murren took home a phat pay packet in 2009, even as his company lost $1.29 billion, stock price fell from $15.44 to $9.12 per share and $8.5 billion folly CityCenter lumbered unsteadily toward completion. Disconnect much? And if you think compensation committees are independent-minded, logical bodies, please give my regards to Santa Claus and the Easter Bunny when you see them next.
On the subject of follies, losses at Eva Longoria‘s restaurant, Beso, have widened considerably since the closing of its Eve nightclub. Someday, this will remembered as one of Vegas’ most high-profile failures. For the time being, Crystals continues to prop Longoria up by conveniently forgetting that Beso is millions of dollars in arrears on its rent. (Where can I get a landlord like that?) Charity is admirable but if Crystals keeps subsidizing Longoria, how long will it be before other tenants demand to renegotiate their leases — or simply don’t bother to pay, with no consequences to fear?
Murderers Row. That could be the new nickname of the Las Vegas Strip if casino-security personnel and Las Vegas Metro don’t get a grip on the wave of homicides (such as this) that have marred the summer and spilled over into the community. It may even be worse than we know. Yours truly witnessed the aftermath of a violent altercation on the Excalibur/New York-New York pedestrian bridge on the evening of July 14. Despite the presence of hundreds of onlookers, several Metro black-and-whites, and even a paramedic unit, it didn’t make the papers. Nothing to see here, folks. Keep moving.
Well, posts like these really put things into context. We have people fighting over millions of dollars, unable to see above their own piles of cash that they’re in the midst of the most economically recessed large community in the US.
David, keep doing what you do, you rock!
All Harrah’s employees should be outraged by this bonus! I wonder if the sacking of David Norton was done so they could hit their $100 million threshold!!