Thursday, August 15, 2019

Las Vegas, Nevada Gaming Technology Company Scientific Games Corp's Top-Tier Executives Average Pay Raise Was a Messy 6.8% Per Year During the Past Ten Years (2009-2018)

After the second Democratic 2020 Presidential candidate debate held in Detroit where Cory Booker was the standout performer, where several other non-top-tier candidates performed exceptionally well especially Steve Bullock and where most of the top-tier candidates stumbled, I now will turn my attention to the early primary States and I already have finished Iowa, New Hampshire and South Carolina Companies so now I have moved on to Nevada Companies.

The key issue to Nevada citizens should be the huge and continuing Income Inequality Expansion which is at the core of many critical problems the US faces.

Thus I will be doing research and making posts on the average pay raise per year that the Top-Tier Executives of Nevada Companies were rewarded with in the past ten years.

The 12th Nevada Company I am addressing here is Scientific Games Corp.  

From annual compensation information contained in Company Proxy Statement filings with the SEC, the chart at the bottom below shows Scientific Games Corp's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the past ten years. 

Scientific Games Corp's Top-Tier Executives Average Pay Raise was a messy 6.8% per year for the last ten years, which is the very lowest of the 12 large Nevada Companies that I have addressed so far.


  1. Eldorado Resorts +58.5% per year for the past six years
  2. Caesars Entertainment +38.8% per year for the past five years
  3. Allegiant Travel +38.0% per year for the past ten years
  4. Pinnacle Entertainment +30.0% per year for nine years
  5. Las Vegas Sands +24.7% per year for the past ten years
  6. MGM Resorts +18.0% per year for the past ten years
  7. Wynn Resorts +17.3% per year for the past five years
  8. Tropicana Entertainment +16.4% per year for five yeats
  9. Red Rock Resorts +12.3% per year for the past six years
  10. Boyd Gaming +10.6% per year for the past ten year 
  11. MGM Growth Properties +9.5% per year for the past two years
  12. Scientific Games +6.8% per year for the past ten years
The only highly effective US Government law enacted by either party in the past decade that has substantially reduced income inequality expansion is Obamacare and the political right is continually trying to repeal and replace it and three of the top four Democratic Presidential candidates now leading in the polls are effectively running as their principal issue to do in essence precisely the same thing ..... repeal and replace Obamacare ..... but to do it with either a pure or a version of Medicare For All.  The pure Medicare For All advocated by both Bernie Sanders and Elizabeth Warren and which was co-sponsored in a US Senate bill by Kamala Harris is off-the-charts enormously expensive and would take up an enormous amount of wasted time with no positive result since it has no chance of getting passed legislatively.  Just given their near-sighted stance on Medicare For All, if the Democratic nominee is any of the three of them, it will be extremely difficult for any of them to beat Trump in the general election.  It is that simple. 

My objective is to get a better handle on just why the US and particularly here Nevada has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative long-term annual pay raise percentages for the executives of a Company vs the many non-executive employees of a Company, coupled with the stock price appreciation subsequent to the time the company executives were rewarded in their pay with stock equity compensation.

To fix Income Inequality driven mainly by Company and its Board of Director choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed, simple but effective Fair Pay Raise Income Inequality Narrowing Company tax incentives for rewarding non-executive employees with fair pay increases ..... the carrot ..... and Company tax disincentives for rewarding executive employees with clearly excessively high pay increases ..... the stick.  I am certain ..... it is simple math ..... that this tax proposal would be very effective in substantially reducing the huge income inequality expansion that has occurred for decades in annual percentage pay raises between company executives and the rest of the company employees. 

And the continuing annual net tax revenues raised by the US Government here should be set up in a separate fund to be used only for wise additional income inequality narrowing initiatives.  This fund should be run by an outside group made up entirely of minorities harmed the most by Income Inequality Expansion of the past decades  .....all women, all blacks, all Latinos, all other non-white people, all past and present union members, all LGBTQ, all non-employee contract workers and all middle and lower income people of all ages, including those retired.

Also, the US Government should require all US Corporate Boards to include at least one worker representative and to exclude any Company Executive.

FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Scientific Games  2018 2017 2017 2016 2016 2015 2015 2014 2014 2013
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Barry Cottle CEO  N/A   N/A 
Kevin Sheehan Former CEO  N/A   N/A   N/A   N/A         
Michael Quartieri CFO       1,474       1,809       1,809       1,633  N/A   N/A 
James Kennedy Chairman, Lottery       1,947       2,151       2,151       2,654       2,654       1,731       1,731       1,768       1,768       1,617
Michael Winterscheidt Chief Acctg Officer  N/A   N/A 
Douglas Albregts Chief Executive of Gaming  N/A   N/A 
David Small Former Chief Legal Officer  N/A   N/A        1,809       1,677  N/A   N/A             
Derik Mooberry Chief Executive of Gaming       1,652       1,564       1,564       1,411  N/A   N/A     
Gavin Isaacs Former CEO       5,848       6,225  N/A   N/A         
Scott Schweinfurth Former CFO  N/A   N/A        1,706       1,940  N/A   N/A 
Steven Beason Enterprise Chief Tech Officer       1,155       1,282       1,282       1,241
David Kennedy Former CEO  N/A   N/A 
Jeffrey Lipkin Former CFO  N/A   N/A 
William Huntley FrmerEVPChiefExecGaming       1,494       2,183
               
 Totals        3,421       3,960       7,421       7,528     10,066       9,367       4,592       4,990       4,544       5,041
Annual % Change vs Prior Year -13.6% -1.4% 7.5% -8.0% -9.9%
 5 Year Average Per Year % Change -5.1%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Scientific Games  2013 2012 2012 2011 2011 2010 2010 2009 2009 2008
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
James Kennedy Chairman, Lottery       1,617       1,906  N/A   N/A 
Gavin Isaacs Former CEO    
Scott Schweinfurth Former CFO    
Steven Beason Enterprise Chief Tech Officer       1,241       1,780       1,780       1,349       1,349       1,045  N/A   N/A 
David Kennedy Former CEO       2,840          169          169       3,072  N/A   N/A     
Jeffrey Lipkin Former CFO       1,507       2,209       2,209       1,312       1,312       1,418  N/A   N/A     
Lorne Weil Former CEO  N/A   N/A        3,894     19,955     19,955     16,447     16,447       5,312       5,312       4,820
Michael Chambrell0 CEO Asia-Pacific Region       2,566       2,132       2,132       4,415       4,415       2,227       2,227       4,527
Ira Raphaelson Former General Counsel  N/A   N/A        1,435       1,189       1,189       1,828
Larry Potts Chief Compliance Officer       1,076          917      N/A   N/A 
William Huntley FrmerEVPChiefExecGaming       2,183       1,306       1,306       2,142  N/A   N/A 
Totals       9,388       7,370     11,924     29,962     24,748     23,325     23,373       9,645       8,728     11,175
Annual % Change vs Prior Year 27.4% -60.2% 6.1% 142.3% -21.9%
5 Year Average Per Year % Change 18.7%
10 Year Average Per Year % Change 6.8%