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MGM Mirage announces end to bonuses

21 October 2008

While some Strip operators have been cagey about layoffs, firings and other employee moves during this time of economic turbulence, MGM Mirage appears to be going the route of full disclosure.

The company, which earlier this year disclosed it would lay off more than 400 managers as part of a streamlining effort, on Monday announced that executives wouldn't receive any cash bonuses or non-equity incentive compensation for 2008.

Both awards are tied to performance. The company's performance targets are confidential, but company spokesman Gordon Absher said the announcement is an early acknowledgment that the company won't be hitting those targets this year.

Better that employees know now rather than discover the elimination of the awards at the end of the year, when they are normally received, Absher said.

Some of that thinking seemed to apply to the layoffs announcement in April, which was preceded by internal discussion about whether to release the information publicly.

Better to be up front rather than have it seep out, in an ugly cloud, by disgruntled workers, the thinking went.

Other companies have acknowledged layoffs since that announcement.

MGM Mirage won't be the lone company to eliminate bonuses on the Strip this year, where business has so far been down in the double digits, worse than insiders and experts predicted.

MGM Mirage announces end to bonuses is republished from