Terry Lanni, the chief executive of casino giant MGM Mirage Inc., received $9.6 million in compensation in 2007 and was so enamored of the company’s planned CityCenter complex in Las Vegas that he bought a penthouse condo unit in it for $8.7 million, filings showed Friday.
The Mandarin Oriental unit was one of three he bought with two sons in the 6,300-room, $8.1 billion complex, a 50-50 venture between MGM Mirage and government-controlled Dubai World set to open in late 2009.
Lanni’s compensation consisted of $2 million salary, $6.4 million in non-equity incentive plan compensation and $1.2 million in other compensation, mostly in retirement benefits and personal use of company aircraft, according to a filing with the Securities and Exchange Commission.
President and chief operating officer Jim Murren, who received $6.6 million in compensation last year, also bought two CityCenter condo units for a combined $7.6 million.
Billionaire Kirk Kerkorian, who controls 53.4 percent of MGM Mirage through Tracinda Corp., bought a condo unit for $8.6 million.
Over the year, MGM Mirage shares rose from a closing price of $57.35 on Dec. 29, 2006, to $84.02 on Dec. 31, 2007. But casino shares have since been pummeled over concerns about an economic slowdown. On Friday, shares closed down 2.7 percent at $51.57.
The company, which owns the Bellagio in Las Vegas and opened the MGM Grand Macau in December, said net revenues for the year increased 7 percent, from $7.2 billion to $7.7 billion, while net profit surged 144 percent, from $648.3 million to about $1.6 billion, or $5.31 per share.
The Associated Press calculates executive compensation based on salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The AP does not include changes in the present value of pension benefits. As a result, the AP’s figures may differ from totals listed by companies in the summary compensation table of proxy statements filed with the SEC.
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