To help finance the payment of employees who are unable to work during the coronavirus pandemic, Wynn Resorts' (NASDAQ:WYNN) board of directors and executives are cutting their own compensation between a third and 100%. CEO Matt Maddox agreed to forgo his entire salary for the rest of the year; in exchange, he will receive Wynn stock.
Casinos were among the first industries, along with restaurants and retailers, to be ordered closed in the U.S. to limit the spread of COVID-19, the disease caused by the novel coronavirus.
Wynn has promised to continue paying all of its employees, including the average tips they earned, during the crisis.
A worldwide impact
Wynn's operations have taken a hit globally, as it derives 80% of its revenue from China, where the coronavirus started. Its resorts in Macao and Cotai were ordered closed for two weeks in February as Chinese officials sought to contain the spread of the virus.
Although casinos were allowed to reopen, with tight restrictions on the number of games permitted and seats available at tables, operators have reported visitors are not returning. Gambling revenue plunged 88% in February from the year-ago period and analysts are expecting a 70% decline in March.
After a month without any new coronavirus cases in the casino district, two new reported cases recently surfaced, from tourists returning from other countries. Regulators had already responded by banning tourists from outside of mainland China, Hong Kong, and Taiwan, but just this week they extended new limitations on residents returning from those regions too.
Wynn Resorts stock is down 46% in 2020, but has more than doubled in the past week.