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MGM Mirage unlikely to give performance bonuses

Casino company MGM Mirage Inc. said the casino company is unlikely to give performance bonuses to its employees at the end of this year because it expects to fall short of its profitability goals, a spokesman said Monday.
/ Source: The Associated Press

Casino company MGM Mirage Inc. said the casino company is unlikely to give performance bonuses to its employees at the end of this year because it expects to fall short of its profitability goals, a spokesman said Monday.

MGM Mirage spokesman Gordon Absher said the company has started to notify employees who would have qualified that they should not expect the bonus based on the company's projections for the year.

"The company has come to the decision that it is only fair to inform employees who normally receive a cash bonus that this is the situation, rather than wait until the end of the year, closer to the point they would normally expect to receive that money," Absher told The Associated Press.

Absher would not say how much the bonuses were worth or how many employees would be affected, but said the total for all bonuses is "in the millions" of dollars. The company has roughly 64,000 employees.

Absher says the move is not meant to hoard cash, but is resulting from the company not meeting certain triggers.

"This is top down. This is from the chairman level down through property levels," Absher said.

MGM Mirage owns 17 casinos in Nevada, Michigan and Mississippi, and holds 50 percent stakes in four other properties.

Shares of MGM Mirage stock fell $1.17, or 7.8 percent, to close at $13.83 on Monday.

MGM Mirage reported profits of $113 million in the second quarter this year, nearly 69 percent below its income in the same period last year.

The company also announced last week that it would withdraw from the Nevada Resort Association, the advocacy group for the state's largest industry, citing difficult economic times. The association's president has said the withdrawal will take effect next year.