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MGM Resorts CEO Contract Extension: Hornbuckle Leads Through 2028

MGM Resorts CEO contract extension at Lotus Asia. MGM Resorts has announced the extension of CEO Bill Hornbuckle's contract through 2028, signaling continued leadership in the

CEO contract extended to 2028
New advisory role for Hornbuckle in MGM Osaka

MGM Resorts International has announced the extension of President and CEO Bill Hornbuckle’s employment contract through to the end of 2028. This move comes as the company aims to build on its success in the gaming industry and enhance its position in the future.

Business contract — Image by Edar from Pixabay

While the specific financial terms of the agreement were not disclosed, it was reported that Hornbuckle’s total compensation for 2024 was about $15.8 million. This included $2 million in base salary, $3.67 million in bonuses and non-equity incentives, and $10 million in stock awards.

“Bill has earned the trust, respect, and admiration of his employees, peers, shareholders, and the Board. We are thrilled that he has agreed to remain in his role for the foreseeable future,” said Chairman Paul Salem.

Hornbuckle initially stepped into the role at the Bellagio on an interim basis during March 2020, when previous CEO Jim Murren was tasked with leading Nevada’s COVID-19 response. With over four decades of industry experience, he previously served as Chief Operating Officer and President of MGM Resorts.

MGM’s Stock Performance Under Hornbuckle

Since taking charge, MGM’s stock has performed well, returning 106.61{6993caa5fb1aab1de46f5b43a835411dda8badf3aa9c6b754938f587e1f52746} over the past five years, significantly outpacing the MVIS Global Gaming Index. In comparison, it also surpasses the S&P 500 returns significantly by over 1,300 basis points.

However, in the past year, the stock has faced challenges, dropping by 21.68{6993caa5fb1aab1de46f5b43a835411dda8badf3aa9c6b754938f587e1f52746}, while the S&P 500 saw a modest increase of 9.39{6993caa5fb1aab1de46f5b43a835411dda8badf3aa9c6b754938f587e1f52746}. Despite these fluctuations, many investors continue to consider MGM as a valuable stock, suggesting that the market undervalues it.

Hornbuckle has been pivotal in steering MGM through the post-pandemic recovery, including significant transactions like the $1.6 billion acquisition of the operating rights to the Cosmopolitan in 2022 and the $450 million sale of the Gold Strike Hotel and Casino. His era has established a reputation for solid execution and operational excellence.

Market analysts have noted: “Although we do not view MGM as having a moat, it is still encouraging that its effective management of integrated resorts has supported approvals for new casinos in Massachusetts, an extension in Macau, and a project slated to open in Japan by 2030.”

The Future of MGM: Focus on Japan

MGM has recently initiated construction on its integrated resort in Osaka, Japan, which will mark the first fully regulated casino hotel in the country. This project represents a significant part of Hornbuckle’s new employment contract, which includes an advisory role following the completion of the Osaka project.

Such advisory roles are common in corporate America, particularly within the gaming sector, underscoring Hornbuckle’s ongoing influence on MGM’s strategy moving forward.

Takeaway

As MGM Resorts prepares for this new chapter, the company seems well-positioned under Hornbuckle’s seasoned leadership. His commitment through 2028 showcases the confidence stakeholders have in his ability to navigate through the changing landscapes of the gaming industry.

In summary: Bill Hornbuckle will continue to guide MGM Resorts through 2028, leveraging his extensive experience to solidify the company’s standing in the competitive landscape of the gaming sector, with exciting plans on the horizon in Japan and beyond.