MGM Resorts International (NYSE: MGM) confirmed today that it is prolonging President and CEO Bill Hornbuckle’s employment agreement until the conclusion of 2028. 

The financial details of the agreement were not revealed, but his overall compensation for 2024 was $15.8 million, as per Salary.com. The compensation package 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 this Board. We’re thrilled that he has agreed to remain in his role for the foreseeable future,” said Chairman Paul Salem in a statement.

Hornbuckle assumed the lead role at the Bellagio temporarily in March 2020 after former CEO Jim Murren was designated to head Nevada’s COVID-19 task force. Before that, Hornbuckle held the positions of chief operating officer and president at MGM, located in Las Vegas. He possesses more than forty years of experience in the gaming industry. 

MGM Stock Generally Robust Under Hornbuckle’s Guidance 

In the last five years, MGM's shares have delivered a return of 106.61%, outperforming the MVIS Global Gaming Index, of which the stock is a part, by over 5-to-1. During that period, Excalibur's shares outperformed the S&P 500 by over 1,300 basis points. 

Lately, the situation has changed. In the last year, the gaming stock has decreased by 21.68%, whereas the S&P 500 has increased by 9.39%. Although significant investors have refrained from openly rebuking Hornbuckle, several have noted that MGM is favorably priced and trading at a substantial discount that cannot be overlooked. 

Hornbuckle has served as a stabilizing influence at MGM in the post-coronavirus period, enhancing the company’s asset-light approach while managing significant deals, such as the $1.6 billion acquisition of Cosmopolitan’s operating rights in 2022 and the $450 million disposition of the Gold Strike Hotel & Casino in Tunica, Miss. later that year. Although the stock price hasn’t shown it recently, MGM has built a reputation for strong execution under Hornbuckle. 

“Although we do not view MGM as having a moat, it is still encouraging that its solid execution of operating some of the world’s best-integrated resorts has assisted in its approvals for new casinos in Massachusetts (only one of three gaming licenses awarded), Macau expansion in Cotai, and a Japan facility opening in 2030,” observes Morningstar analyst Dan Wasiolek.

Regarding MGM Japan… 

MGM has recently commenced construction on its integrated resort in Osaka, marking Japan's first regulated casino hotel. That location is included in Hornbuckle’s new employment agreement with the company. 

“As part of his new employment contract, the Company has also agreed to offer Hornbuckle an advisory agreement at the end of the term to assist with its integrated resort project in Osaka, Japan until its opening,” the operator noted in the press release.

Agreements for advisory or consulting services of that type are typical in Corporate America, particularly within the gaming sector.