MGM Extends CEO Hornbuckle Through 2028

• Casino operator extends CEO’s contract through the end of 2028
• New deal includes advisory role at MGM Osaka at end of term

MGM Resorts International (NYSE: MGM) announced today it is extending President and CEO Bill Hornbuckle’s employment contract through the end of 2028.

Financial terms of the agreement weren’t disclosed, but his total 2024 compensation was $15.8 million, according to Salary.com. That package consisted of $2 million in base pay, $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 took the top spot at the Bellagio on an interim basis in March 2020 when then CEO Jim Murren was appointed to lead Nevada’s COVID-19 task force. Prior to that, Hornbuckle served as chief operating officer and president of Las Vegas-based MGM. He has over four decades of gaming industry experience.

MGM Stock Mostly Strong Under Hornbuckle’s Leadership

Over the past five years, shares of MGM returned 106.61%, beating the MVIS Global Gaming Index, of the stock is a member, by a margin of better than 5-to-1. Over that span, shares of the Excalibur beat the S&P 500 by more than 1,300 basis points.

Hornbuckle has been a steadying force at MGM in the post-coronavirus era, extending the operator’s asset-lite model while overseeing important transactions, including the $1.6 billion purchase of Cosmopolitan’s operating rights in 2022 and the $450 million sale of the Gold Strike Hotel & Casino in Tunica, Miss. later that year. While the stock price hasn’t reflected as much of late, MGM has developed a reputation for solid 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.

Speaking of MGM Japan…

MGM recently broke ground on its Osaka integrated resort, which will be the first regulated casino hotel in Japan. That venue figures into Hornbuckle’s new employment accord 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.

Advisory/consulting agreements of that nature are common in Corporate America, including in the gaming industry.