Rather than spending money on things, millennials are allocating income to experiences, leading the age cohort to drive a 6.5 percent gain in sales at bars and restaurants during the past 12 months. The combined spending power of the generation continues to positively affect the entire hospitality industry. First-quarter occupancy at U.S. hotels hit 60.7 percent, the second highest level on record, and supported gains in revenue metrics. Hotel brands continue to respond to the aging baby boomers and the emerging millennial class by changing design standards and features to suit changing guest preferences.
CZR parent is not in bankruptcy and that is why all of these pay raises are being passed now. They gotta grab as much money as they can now because come end of August the fat lady is going to sing.
As the song says, we need a hero.
Wow. Frissora gets a raise to $2 million per year and stock options. Doesn't even use a gun.
Amendment to Chief Executive Officer Employment Agreement
On July 5, 2016, Caesars Entertainment Corporation (the "Company") approved an amendment (the "Amendment") to that certain employment agreement, dated February 5, 2015, as amended, among the Company, Caesars Enterprise Services, LLC ("CES") and Mark Frissora (as further amended by the Amendment, the "Employment Agreement") to reflect certain changes in Mr. Frissora's duties and compensation. The material terms of the Amendment are set forth below.
Pursuant to the Amendment, Mr. Frissora will agree to provide strategic advisory consulting services to Caesars Acquisition Company ("CAC", which will join the Amendment for these purposes), a joint venture partner of the Company in Caesars Growth Partners, LLC ("CGP"), with respect to the operation of the properties owned by CGP and investment and growth strategies of same (the "Consulting Services"). In consideration for the Consulting Services, CAC granted Mr. Frissora restricted stock units (the "CAC RSUs") under the CAC 2014 Performance Incentive Plan with respect to that number of shares of Class A common stock of CAC, par value $0.001 per share (a "CAC Share"), having an aggregate value of $3,000,000 determined as of the date of grant, where each CAC RSU represents the right to receive one CAC Share. The CAC RSUs will vest in three equal installments on the anniversary of the grant dates, subject to Mr. Frissora's continued employment by the Company through such applicable date. In addition, in the event Mr. Frissora is terminated by the Company without Cause due to death or Disability, or by Mr. Frissora for Good Reason other than in connection with a Change of Control, Mr. Frissora will be entitled to one year of additional vesting with respect to (a) the CAC RSUs, (b) the restricted stock units awarded by the Company to Mr. Frissora on March 23, 2016 and (c) any other equity awards granted to Mr. Frissora. In this paragraph, Disability, Good Reason and Change of Control have the meanings given to such terms in the Employment Agreement.
In addition, Mr. Frissora's (a) base salary is increased from $1,800,000 to $2,000,000 and (b) target annual bonus opportunity is adjusted from 150% to 175% of his base salary, each amendment to be effective as of February 5, 2016. The target price of Mr. Frissora's Price Target Performance-Based Options granted on February 5, 2015 under the 2012 Plan is reduced from $30 per share to $15 per share.
The foregoing summary is qualified in its entirety by reference to the full text of the Amendment, which is attached hereto as Exhibit 10.1 and incorporated by reference herein.
Bummer. I was enjoy great dividends from the Pref E shares. But can't complain about getting $25+ and moving on. Getting rid of the preferred payments will help the bottom line for AHT.
Think about it. You are the CEO of your company that is going down in the courts. Your job is ultimately lost when all the verdicts come in. What do you do? You rob your company of everything you can before you are no longer CEO because you know you are NOT going to jail for any of your actions!! You are going to appeal every decision against your company because it doesn't cost you a dime and buys you more time to loot the company. High salary, big bonuses awarded by cronies on the board, benefits like vacations, jets, cars, women... When it does all end you'll be on easy street for the rest of your life... And there is not enough coordination by ripped off retail share holders to sue you !! Brilliant, really.
Sex affair lawyers Melissa Knoll and Vincent Lazar were the pair of doofuses who screwed their respective opposing Caesar bankruptcy clients when their trysts were admitted in court. Mark Frissora, CEO of Caesar, is the ace-hole who is the captain running the Caesar ship into the rocks. Now they are going to offer junior creditor an empty promise (or one full of sly talk) to escape with the valuable booty that remains on the sinking ship. We can only hope some criminal or civil lawsuit comes of it to these culpable individuals.