Outgoing MGM CEO Receives $ 32M Output Payment

MGM Resorts International, which announced last week that CEO Jim Murren is retiring, will pay him an exit package of about $ 32 million over the next two years. Murren, who led the casino operator in Las Vegas since 2008, should receive his annual salary in the amount of $ 2 million plus $ 11 million in the form of bonuses for staying in the company by the end of the year.
Reportedly since January of this year, Jim Murren receives $ 575 thousand a month before the end of the year in exchange for consulting services for the company. This is in addition to the day off of 12 million dollars. On Wednesday, MGM stated that they form a special committee of the Board of Directors to find the successor to Jim Murrenu. The outgoing CEO will remain at the helm until this replacement will be found.
Murren, the prophet of the late founder of MGM Kirk Kerkorin, helped turn the company in the largest owner of the casino on Las Vegas Strip. He also survived the storms in his career – including the opening of the CityCenter resort by 9.2 billion dollars on the eve of the economic recession, which made the company to fight for money. Another crisis came in 2017, when the shooter, who stopped at the Mandalay Bay hotel, killed 58 people.
Under the pressure of investor activist, seeking to increase the value of the company’s shares, Murren sold the MGM casino to third parties in the framework of the strategy he called “Active Light”. The strategy was continued by China Maister, the shareholder, who joined the Board of Directors last year. The company sold assets such as Bellagio and MGM Grand in Las Vegas. MGM will continue to manage these resorts for owners: Blackstone Group and MGM Growth Properties, Real Estate Subsidium Investment Fund.
Murren said the company will channel $ 8.2 billion in revenue from recent sales to emerging companies such as sports betting and the new casino resort MGM is fighting for in Japan.

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