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Who are the majority shareholders? A company being publicly traded has zero bearing on whether or not board members hold a controlling interest. There are many, many companies where the board holds a controlling interest. In fact, if you want a controlling interest in any publicly traded company all you will need to do is buy 51% of it and you'll have a seat on that board.
You have still failed to show in any material way that the board members are majority
owners of the companies. It doesn't surprise me as you frequently fail to back up your
opinions with factual research or data.
Let's go for some facts since you seem to have trouble finding them:
MGM
Largest shareholders include Price T Rowe Associates Inc /md/, Vanguard Group Inc, BlackRock Inc., Capital World Investors, State Street Corp, Corvex Management LP, Harris Associates L P, RPMGX - T.
Common Shares Outstanding: 536,916,609 sh...
Institutional Shares: 461,667,357 - 85.98%
Institutional Owners: 518
Caesars:
Largest shareholders include Icahn Carl C, Vanguard Group Inc, BlackRock Inc., Canyon Capital Advisors Llc, Allianz Asset Management AG, Goldman Sachs Group Inc, IJH - iShares Core S&P Mid-Cap ETF, UBS Group AG, Oaktree Capital Management LP, and VTSMX - Vanguard Total Stock Market Index Fund Investor Shares.
Mutual fund holders: 24.92% Other institutional: 85.41%
Individual stakeholders: 22.92%
You have still failed to show in any material way that the board members are majority
owners of the companies. It doesn't surprise me as you frequently fail to back up your
opinions with factual research or data.
Let's go for some facts since you seem to have trouble finding them:
MGM
Largest shareholders include Price T Rowe Associates Inc /md/, Vanguard Group Inc, BlackRock Inc., Capital World Investors, State Street Corp, Corvex Management LP, Harris Associates L P, RPMGX - T.
Common Shares Outstanding: 536,916,609 sh...
Institutional Shares: 461,667,357 - 85.98%
Institutional Owners: 518
Caesars:
Largest shareholders include Icahn Carl C, Vanguard Group Inc, BlackRock Inc., Canyon Capital Advisors Llc, Allianz Asset Management AG, Goldman Sachs Group Inc, IJH - iShares Core S&P Mid-Cap ETF, UBS Group AG, Oaktree Capital Management LP, and VTSMX - Vanguard Total Stock Market Index Fund Investor Shares.
Mutual fund holders: 24.92% Other institutional: 85.41%
Individual stakeholders: 22.92%
Your numbers don't add up.
Apparently you ignored everything I said about banks, funds, management companies, etc working in kahootz. If "individual stakeholders" represents common stock traded publicly then you're only proving my point.
I know where to look the data up, but I don't need to, and I don't really care if you believe what I have to say or not - I don't have anything to prove to you. You'll either accept what I have to say or challenge it, but I'll point out to you that I pretty much never speak on a topic I don't know anything about.
I already stated that I do not track casino financials. I can make a pretty good educated guess about the ownership of any large Corp because they're all pretty much run the same way.
When was the last time you saw an article about a casino board member being ousted?
Barring violation of charter or something legal, a shareholder vote can only oust a board member if the board does not hold a controlling interest or if the board members themselves also want a certain member gone. In practice this never happens. The hedge funds, management companies, banks, CEOs, and any other large investors are nearly always in kahootz and almost certainly will own a controlling interest, collectively.
You're saying whales have a separate line item on the P&L statement? I'd like to see that. In fact, I'm willing to bet the whales don't actually bring in the majority of the revenue, although they are certainly a boon to the property when they visit.
Does high touch clientele receive a higher level of service? They certainly do. Do they pay for that? Yes they do.
I think it's less about profit margins and more about the expectations of certain classes of clientele. The casinos want to curry favor with the whales because they can be influential in getting other traffic, like conventions, into the casino - not that they're particularly lucrative themselves. They're certainly more lucrative than the average player, but in the wider scope they probably only make up a small fraction of total revenues for any given quarter.
You have just resorted to making stuff up. None of this is how a modern public company works. The board members only see large shareholders when someone, usually a hedge fund, buys a really large position and demands a seat on the board. Most board members just along for the ride, when an activist comes many flee by resigning. Otherwise board members are just people who have some business experience elsewhere that get some options and a small paycheck to be on the board. It's not that hard a job, but they don't hire just anyone.
This all happened with MGM over the last couple of years, go do some reading to learn how things really work. Even better go read a Proxy statement, a 14A where board members, insiders and all large holders must have their shareholding disclosed.
Apparently you ignored everything I said about banks, funds, management companies, etc working in kahootz. If "individual stakeholders" represents common stock traded publicly then you're only proving my point.
I already stated that I do not track casino financials. I can make a pretty good educated guess about the ownership of any large Corp because they're all pretty much run the same way.
When was the last time you saw an article about a casino board member being ousted?
You claimed that board members owned the majority of the companies...I stated that
is incorrect. You have failed to prove otherwise. Your educated guess isn't very good...you
really need to do some more research before you throw out your opinion as fact or just claim it
is your opinion and suck it up when proven wrong.
Board members are ousted when a stockholder or stockholders who have considerable holding
are unsatisfied with them and move to get them replaced with their own slate. Just happened recently
at Caesars...I know Icahn shoved to get 3 board members appointed and the CEO replaced with his
17.75% stake. So yes, that was February or March, 2020.
You have just resorted to making stuff up. None of this is how a modern public company works. The board members only see large shareholders when someone, usually a hedge fund, buys a really large position and demands a seat on the board. Most board members just along for the ride, when an activist comes many flee by resigning. Otherwise board members are just people who have some business experience elsewhere that get some options and a small paycheck to be on the board. It's not that hard a job, but they don't hire just anyone.
This all happened with MGM over the last couple of years, go do some reading to learn how things really work. Even better go read a Proxy statement, a 14A where board members, insiders and all large holders must have their shareholding disclosed.
I'm well aware of SEC filings. I used to day trade.
So, you agree with me then... the board is a "private club" and the shareholders and large stakeholders work together to drive the company.
Like I said, if you buy 51% of a company, you'll have a seat on the board. They won't have any choice. Actually, you can get a seat with far less shares than that.
The earlier statement made by BBMW imply that somehow regular shareholders are going to recall a board member over breach of fiduciary responsibility, if that's even in the corporate charter, like that ever actually happens, which it doesn't.
In the case of MGM, there isn't even enough publicly traded common stock to recall a board member, which was exactly my point. Only 14.69% of MGM Resorts International is available for trading on the public market. The institutional investors could get together to oust a board member but that's doubtful. Every single person on that board is bought and paid for by multiple funds and other entities.
All of the hedge funds and mutual funds buy and sell the shares to each other.
All the management companies buy and sell the properties to each other.
All the same board members float around from board to board and get paid off to do what is in the best interest of their backers.
There is a huge gulf here between how all of this theoretically should work on paper and what the reality of the situation is.
You claimed that board members owned the majority of the companies...I stated that
is incorrect. You have failed to prove otherwise. Your educated guess isn't very good...you
really need to do some more research before you throw out your opinion as fact or just claim it
is your opinion and suck it up when proven wrong.
Board members are ousted when a stockholder or stockholders who have considerable holding
are unsatisfied with them and move to get them replaced with their own slate. Just happened recently
at Caesars...I know Icahn shoved to get 3 board members appointed and the CEO replaced with his
17.75% stake. So yes, that was February or March, 2020.
The board members are bought off by the institutional investors. You're talking about this like these board members aren't employees of the investment corps.
Caesar's is a bad example. They've been having serious problems for years.
Board members get ousted when a majority of stakeholders votes them out, not when a single activist investor does.
You claimed that board members owned the majority of the companies...I stated that
is incorrect. You have failed to prove otherwise. Your educated guess isn't very good...you
really need to do some more research before you throw out your opinion as fact or just claim it
is your opinion and suck it up when proven wrong.
Board members are ousted when a stockholder or stockholders who have considerable holding
are unsatisfied with them and move to get them replaced with their own slate. Just happened recently
at Caesars...I know Icahn shoved to get 3 board members appointed and the CEO replaced with his
17.75% stake. So yes, that was February or March, 2020.
I decided I would fact check you on this. First of all, Mark Frissora joined Caesars immediately following a Chapter 11 bankruptcy filing he may or may not have been aware of at the time he accepted the position. The filing literally occurred only a few weeks before he took the helm.
Icahn is a known activist investor who, interestingly, was also involved in Frissora's prior company, Hertz. It looks like some activist investors at Hertz were making claims of breach of fiduciary responsibility, but these were never substantiated, and Frissora left Hertz of his own accord at a later date.
As far as Frissora's tenure at Caesar's is concerned, he had announced intention to step down from the company in 2018. The same Carl Icahn pushed for the installation of Anthony Rodio as Frissora's replacement. It may interest you to note that Icahn currently holds nearly 1/3 of Caesar's stock.
Remember what I said about the board members being bought by investment companies?
Presently, Icahn is pushing Rodio to sell the company. That's what these activist investors do, they get control and liquidate companies assets.
It looks like you've failed to prove that there is no connection between the board members and the primary investment firms of these companies. You really need to do some more research before you throw out your opinion as fact or just claim it is your opinion and suck it up when proven wrong.
The hotels could just lower prices by 20%-40%, include the resort fee, and cut Expedia and company out. That isn't a business relationship on equal footing. The booking sites make nothing if the hotels don't give them rooms to sell.
I'm not sure if what you say is true, but I would never let an advertiser tell me how to price my product, particularly if that meant that I would lose money.
Consumers aren't interested in searching each company's reservation site in order to find the "best" price. We've become conditioned to going to one page on the internet and let it do the work for us. The travel web sites of today are the human travel agents of yesterday with more transparency.
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