MGM Mirage CEO sees pay decrease in 2008
MGM Mirage Chairman and Chief Executive Officer Jim Murren earned more than $3 million in pay during 2008, roughly $5.4 million less than he was compensated in 2007, according a company filing with the Securities and Exchange Commission late today.
Murren, who replaced Terry Lanni in those positions in November, was recently given a new employment agreement that expires in 2013 almost with a raise of $500,000. Murren also retains the titles of president and chief operating officer.
In 2008, Murren received $1.5 million in salary, $20,982 in stock awards and $1.1 million in stock appreciation rights and options. Other compensation, which included use of MGM Mirage corporate aircraft, totaled $442,039.
Murren’s compensation was well below the nearly $8.5 million in salary and bonuses he earned in 2007 and the $10.3 million earned in 2006.
His new employment agreement, which was executed earlier this month, gives Murren a base salary of $2 million. He is eligible for bonuses and cash awards of up to $4.25 million annually.
MGM Mirage, the Strip’s largest casino operator, is facing a May 15 deadline from its lenders to come up with a restructuring plan for its $13.5 billion in long-term corporate debt. The company is also feuding with Dubai World, its joint venture partner in the $8.7 billion CityCenter development, over the project’s financing.
Lanni, who retired in November after 13 years with the casino operator, earned $3.8 million with MGM Mirage in 2008, which included a salary of $2 million. The figures were well below $12.7 million Lanni earned in 2007 and $15.7 million he was paid in 2006.
Murren joined the then-MGM Grand Corp. in 1998 as chief financial officer after spending 14 years on Wall Street as an equity analyst and managing director of Deutsche Bank. Murren was named company president in 1999, prior to the buyout of Mirage Resorts.
In 2007, Murren gave up the CFO duties and took on the role of chief operating officer, overseeing the day-to-day operations of the company’s hotel and casino properties and becoming the No. 2 person in the MGM Mirage hierarchy.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.
