The two top gambling business CEOs in Las Vegas have been featured in a new report from the Institute of Policy Studies, which looked at the generally increasing pay gap between heads of U.S. companies and their average workers.
The study looked to find the 100 out of the biggest 500 U.S. companies that pay the lowest wages, and then compared that to the CEO pay.
Caesars Entertainment’s Tom Reeg was paid $18.6 million in 2023. The average Caesars worker was paid $33,250 for the year. That’s 556 times more for the CEO. Meanwhile, MGM Resorts International CEO Bill Hornbuckle’s $17 million paycheck was 374 times the average MGM worker’s $45,502 salary.
“What gets ordinary Americans particularly angry? Watching major companies hand out massive CEO paychecks while their lower-level employees are struggling to get by,” the report said.
“This report focuses on these big pay gap companies. The 100 S&P 500 corporations with the lowest median wages — the Low-Wage 100 — last year paid their CEOs an average of 538 times what they paid their most typical workers. Average Americans, notes a Harvard Business School study, believe that corporate CEO-worker pay ratios should run no higher than 7 to 1.”
Vegas’ Ranking
In terms of the top 100 companies for high CEO and low worker pay, neither company was near the most egregious.
Many of the companies in the S&P 500 are highly white collar tech firms, meaning smaller workforces and higher pay. That’s compared to a larger, more generally lower-skilled workforce for giant gambling and hospitality operators like MGM and Caesars.
It should also be pointed out that Las Vegas has a strong union presence, driving up average hospitality worker wages.
Penn Entertainment CEO Jay Snowden has also been near the top of the CEO to worker pay disparity list in recent years. He did not feature this year, possibly due to the company’s woeful financial outlook, which has seen it fall out of the S&P 500.
Nevertheless, the Penn CEO, who is ultimately in charge of Las Vegas’ Penn-owned M Resort, was paid $65 million in 2022. That’s 1,942 times the average Penn Entertainment worker’s wage of $33,930.
Budget clothing chain Ross Stores, of which there are several in Las Vegas, topped the list for CEO-to-worker pay disparity.
Thanks to its reliance on part-time store workers, Ross Stores paid the average worker $8,618 a year. That’s compared to $18.1 million for its CEO, Barbara Rentler, which is 2,100 times her average employee.
Stock Buybacks
The report also criticized high levels of stock buybacks from CEOs. It cited several studies that suggest stock buybacks take investment away from the company overall in favor of management and investor profits.
In 2022, Snowden benefited from the operator’s multimillion-dollar stock buyback. That’s despite Penn Entertainment shares plunging precipitously due to the flat outlook for growth after its huge investment in ESPN Bet. In fact, even his own board and investors think he is paid too much.
Caesars Entertainment actually doesn’t practice stock buybacks for senior staff. MGM does, but has limited itself. Las Vegas Sands — who remain based in Sin City despite not having any U.S. casinos — recently enacted a $200 million stock buyback scheme.
David is an online casino expert who specializes in online slots and boasts over 10 years experience writing about iGaming. He has written for a wide range of notable publications, including eSports Insider and WordPlay Magazine.
David graduated Derby University with a BA Degree in English Literature and Creative Writing.
