The Markets February 4, 2009

Huntington Bank Cuts 401(k) Match

Huntington Bancshares has announced actions it will take to get on more sound financial footing, including cutting company match contributions to its 401(k) plan.
Reported by

Dropping the match will save the Columbus, Ohio-based bank $11 million, The Columbus Dispatch reports. The bank also announced it will lay off 500 employees, freeze salaries at 2008 levels, and eliminate bonuses earned in 2008.

The end of bonuses and other perks, including recognition trips for top sales representatives, will save the bank $30 million to $40 million, according to The Dispatch.

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The need to slash operating costs stems from Huntington’s poor fourth-quarter performance, the continuing recession, and concerns about the bank’s exposure to subprime mortgages.

Huntington reported a $417 million loss for the fourth quarter, in great part because of a $454 million write-off for problem loans it acquired through its 2007 purchase of Sky Bank, the news report said.

The Markets February 4, 2009

Wynn Resorts Calls Off 401(k) Match

Las Vegas resort company Wynn Resorts has joined the legions of employers suspending their 401(k) match.
Reported by

A news release from the company said the cost-savings package announced this week that included the match suspension should save Wynn $75 million to $100 million annually.

According to the announcement, other economy moves included:

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  • pay cuts for salaried employees based in Las Vegas
  • reduced work weeks for full-time hourly employees
  • elimination of the 2009 bonus program.

“The management team at Wynn Resorts recognizes their responsibility to the employees, customers and shareholders to maintain the strength and health of the business and the integrity of the guest’s experience,” said Steve Wynn, chairman and CEO of Wynn Resorts, in the announcement. “We will make decisions that protect and preserve the stability of the employees and allow the company to optimize its performance.”

The Mohegan Tribal Gaming Authority announced in January that it will suspend future annual and merit pay raises and stop company match contributions to its 401(k) retirement plans (see “Mohegan Sun Casino Stops Match’ and “More Companies Go Match-less“).

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