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The Markets January 13, 2009
Mohegan Sun Casino Stops Match
The Mohegan Tribal Gaming Authority has announced it will suspend future annual and merit pay raises and stop company match contributions to its 401(k) retirement plans.
Reported by Rebecca Moore
BusinessWeek reported that the Mohegan Sun casino is also cutting the pay of all 9,800 employees. Pay for vice presidents and senior management will be cut by 10%, middle managers’ pay will be cut by 7.5%, and the pay for non-management salaried and hourly employees will be reduced by 4%, effective February 1.
“Due to unprecedented market conditions, the authority has been forced to make a number of difficult, but necessary, decisions to reduce our operating costs,” said Mitchell Etess, president and chief executive of Mohegan Sun, according to the news report.
The casino company plans to avoid layoffs.
Last month, Station Casinos of Las Vegas also announced it was suspending 401(k) match contributions and cutting executives’ pay (see “More Companies Decide to Go Match-less“).