GGRAsia – Wynn Macau Ltd asks managers to take 10pct wage in stock

Wynn Macau Ltd asks managers to take 10pct wage in stock

May 24, 2022 Newsdesk Latest News, Macau, Top of the deck

Macau gaming operator Wynn Macau Ltd is asking some management-level staff to volunteer to take 10 percent of their monthly base pay in the form of company stock, according to a notice recently sent to employees, and seen by GGRAsia.

The scheme – described as optional – runs from June 1 to December 31, this year.

Wynn Macau Ltd – which operates the Wynn Macau and Wynn Palace resorts in the Chinese gambling hub – reported first-quarter earnings before interest, taxation, depreciation and amortisation that were negative by circa US$6-million. Its quarterly loss widened to US$188.5 million in the three months to March 31, compared to a loss amounting to US$161.2 million in the prior-year quarter.

A May 10 note from Morgan Stanley Asia Ltd, said net debt at Wynn Macau Ltd had risen 5 percent quarter-on-quarter, to US$4.7 billion, “as Wynn [Macau Ltd] depleted US$210 million cash in first-quarter 2022″.

Wynn Macau Ltd shares are listed in Hong Kong. The stock was down about 3 percent on Tuesday prior to the close of trading, at HKD4.19 (US$0.53). The firm’s parent is United States-based casino group Wynn Resorts Ltd.

According to the Wynn Macau Ltd notice seen by GGRAsia, staff members that participate in the stock-for-salary scheme will have 10 percent of their monthly base pay exchanged for a grant of Wynn Macau Ltd shares. Such grant would vest in full on January 3, 2023, the first business day after December 31, 2022.

Should participating staff members leave their employment before December 31, 2022, the stock grant will vest on a pro-rata basis relative to their exit date, the document reads.

GGRAsia approached Wynn Macau Ltd seeking comment on the voluntary scheme, and seeking clarification on what level of management and what departments are being invited to take part in it. The company said in a reply to GGRAsia on Wednesday, that it did not have any comment on the subject raised.

Earlier this month, two senior Macau-based executives of Wynn Resorts, and the parent’s group chief executive, had voluntarily reduced the cash amount of their base salary for the remainder of 2022, in exchange for upping their long position in the firm via either share options or restricted shares.

Those three executives were: Linda Chen, president of Wynn International Marketing Ltd and also the vice chairman, chief operating officer and executive director of Wynn Macau Ltd; Ian Coughlan, president and executive director of Wynn Macau Ltd; and Craig Billings, director and chief executive of Wynn Resorts, who is also chief executive and executive director of the Macau firm.

(Updated 11.30am, May 26)