As the casino industry tries to deal with the coronavirus pandemic, employees continue to be laid off or furloughed. Top companies like Caesars Entertainment have been forced to let go of employees due to casino capacity restraints and the current market demand. While employees affected are trying to figure out how to make mortgage payments and buy food, five executives of Caesars are about to receive a pay raise.
Last Wednesday, the board of directors for the company approved the raises. This is based on information filed within the Securities and Exchange Commission. One example of the salary changes includes CEO Tom Reeg. The CEO will now earn $2 million after the Caesars/Eldorado Resorts deal was closed. Reeg was previously earning $1.6 million.
According to the SEC filing, the base salaries as well as opportunities for bonuses and incentives for officers of Caesars were adjusted due to the increased role and responsibility of the individual moving forward.
Chairman Gary Carono is set to earn $1.4 million, up from the $1.1 million he earned in 2019. Anthony Carano, the COO and President of the company, saw his salary jump to $1.3 million, from $1 million. CFO Bret Yunker and chief legal officer Ed Quatmann also saw their salaries increase.
A Bad Look:
The increase in salary for the five executives looks bad on the company but is something that might have already been laid out as the merger between Caesars Entertainment and Eldorado Resorts was originally agreed upon.
The deal was originally expected to close during the first quarter. If the deal had been completed before the pandemic hit, the salary changes would most likely not have even been considered. However, the current status of the company when considering employees has some raising their eyebrows at the raises.
The changes in salary for the executives come at a time when Caesars sees most of their workforce laid off or furloughed. Back in April, it was announced that around 90% of the company would be furloughed from domestic properties. This also included corporate staff members.