Las Vegas Sands: Two “One-Time” Awards in One Year & Other Overpay Issues

May 12, 2022

Recently appointed chair and CEO Robert Goldstein received total compensation of $31,204,900 in 2021. This includes a “one-time initial award” of time-based restricted stock units (RSUs) valued at $8,964,000 in connection with his new employment agreement signed after Sheldon Adelson’s January 2021 death. It also includes “one-time performance-based stock options” valued at $17,220,000 granted in December 2021. The fact that two one-time awards appear in one year’s pay does not suggest constraint on the part of the board members.

Goldstein also received a salary of $3,150,000, well above the salary of most S&P 500 company CEOs. In addition, he received unusually generous perquisites and “an income tax gross up for the foregoing benefits if they are determined to be taxable income to him.” In other words, shareholders will pay his taxes for these benefits. Most components of his compensation are provided under his five-year employment agreement which does not terminate until March 2026. Shareholders have become more resistant to shareholder agreement in general but this one is long and lavish.

In addition Mr. Adelson passed away on January 11, 2021. The salary amount in the table above includes $307,692 of base salary paid to Mr. Adelson prior to his passing and in accordance with his employment agreement, Mr. Adelson’s estate was entitled to receive payments of his base salary for twelve months following his passing which consisted of $5 million.

The number of shares held by insiders of the company mean that broader shareholder dissatisfaction is not always evident. Last year the company reported 30 percent of shares voted against pay, but As You Sow found that 84 percent of institutional shares voted against the package. Las Vegas Sands was number seven on our list of Overpaid CEOs.