MGM MIRAGE (NYSE: MGG) today
announced that it has secured the services of several of its senior executives
through at least mid-2006.
“With the support of our board of directors, the Compensation and Stock
Option Committee embarked on a program to realize the benefits of continuity
and stability from our successful management team by securing their long-term
services,” said James Aljian, chairman of the committee.
The program has two principal components: (1) entering into new
employment agreements with certain senior executives and (2) the creation of a
new Restricted Stock Plan.
Accordingly, MGM MIRAGE has entered into employment agreements with
several of its executives including the five most senior officers, engaging
them with the company through at least July 3, 2006. The company anticipates
entering into additional employment agreements with other key employees.
Additionally, in May, 2002, the company`s Board of Directors approved the
2002 Restricted Stock Plan, which authorizes the grant of up to
1,000,000 restricted treasury shares to key employees. In order to insure
continuity of management, restrictions on the shares would remain in effect
through the third anniversary of grant (as to 50% of the shares) and fourth
anniversary of grant (as to the remaining shares). In certain instances, the
restrictions would remain in effect for a longer period. In June, 2002,
grants aggregating 882,000 shares were made to 65 key employees of the
“The merger two years ago between MGM Grand, Inc. and Mirage Resorts has
been enormously successful. In consideration of the fact that there will be
continued demand for top talent in the industry, the Board believed it was a
strategic imperative to keep this team with MGM MIRAGE into the foreseeable
future,” Mr. Aljian said.
The company has entered into employment agreements expiring July 3, 2006
with J. Terrence Lanni, Chairman and Chief Executive Officer; James J. Murren,
President, Chief Financial Officer and Treasurer; Robert H. Baldwin, President
and Chief Executive Officer Mirage Resorts; John T. Redmond, President and
Chief Executive Officer MGM Grand Resorts; and Gary N. Jacobs, Executive Vice
President, General Counsel and Secretary.
For a complete copy of the above mentioned agreements, please refer to the
Company`s June 30, 2002 Form 10-Q as filed with the Securities and Exchange
Commission on August 9, 2002.