For his hard work and dedication last year, Melco Resorts and Entertainment Chairman and CEO Lawrence Ho was given bonuses of over $10 million between shares and cash. That’s enough to put a smile on anyone’s face. However, it seems that the bonuses may have come at the expense of the casino operator’s employees. Melco is reportedly trying to pay off certain employees in Macau to get them to quit, which could save the company money if it were forced to let them go, instead.
According to a report by GGRAsia, Melco is offering pit bosses as much as $62,045 to walk away—not bad for someone who earns $3,700-$5,000 a month. Other employees have been offered different types of incentives to leave their posts, including transfers to non-gaming jobs or up to a year in unpaid leave.
The changes come following a solid first quarter. According to company figures released last week, the company’s revenue reached $1.36 billion—about 4% higher than the first quarter of 2018. However, the company’s operating income dropped to $188 million and net income fell to $117.4 million.
Despite that performance, the company, as with the entire Macau gaming industry, has seen a drop in VIP gaming that has been ongoing for the past year. However, Macau has always seen better stability in the segment than most. This year, though, the segment dropped below mass market gaming for the first time.
According to GGRAsia’s sources, the “incentives” being offered to the pit bosses is being billed as a way to help those individuals start their own businesses. The outlet adds, “Any such start-ups would then be encouraged to pitch themselves as vendors of goods and services to Melco Resorts.”
If the pit bosses don’t want the cash, they can opt for the one year of unpaid leave, the same option offered to their coworkers. Alternatively, if they want to transition to non-gaming jobs, Melco will offer training before the transfer.
The options are available to pit managers at Altira Macau, City of Dreams Macau and Studio City and are “100-percent voluntary.” They are also “designed according to findings via focus groups and other colleague-human resource [department] communication channels,” according to Melco. The company added, “Since the announcement, numerous pit manager colleagues have expressed their excitement about the openings and possibilities on offer.”