Caesar’s recently awarded its Chief Executive Officer, Mark Frissora, $29.4 million in compensation for 2017, which is the year the hotel-casino emerged from Chapter 11 Bankruptcy.
Post Bankruptcy Earning
The $29.4 million breaks down, roughly, as follows: $2 million for a base salary, $4.5 million as a cash bonus, $16.5 million in retention-restricted stock, $6 million as a long-term cash award, and $400,000 for repriced options.
According to a bankruptcy attorney, repricing options isn’t a best corporate practice. Caesars does plan to stop doing it as of May, however, to enhance retention during the restructuring process, a Caesar’s committee acted without investor approval and reduced the strike price for all awards to $9.45 per share.
Caesar’s shares have slid 13 percent this year; last year, the stock gained 49 percent.
Strategizing During Bankruptcy Process
The repricing allowed Caesars to offer equity-based pay without giving new awards, which were restricted during the restructuring process. The company awarded each of its executives long-term cash awards that pay out over two or three years.
They received retention stock grants of $3 million to $16.5 million after emerging from Chapter 11 on October 6th. Caesars reported that the awards are consistent with practices of other major companies that emerge from bankruptcy.