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“).

The Markets February 4, 2009

Another Newspaper Announces Match Suspension

The St. Petersburg Times has joined the ranks of newspapers freezing pay and suspending 401(k) plan company match contributions.
Reported by

In a letter Tuesday, Paul Tash, chairman, CEO, and editor, told employees that starting April 1, the company will suspend match contributions to its 401(k) plan. In addition, Tash said the newspaper will freeze service credits for the company’s pension plan starting April 1.

The letter told employees the pay freeze imposed by the newspaper in June will be extended for another year. Tash has taken a 5% reduction in his pay for the duration of the freeze.

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Tash also announced in his letter that employees who were eligible for an early retirement program last year will be given another chance to participate.

In January, Media General, which publishes 24 daily newspapers and about 275 weekly newspapers and other publications, including the Richmond Times-Dispatch and the Tampa Tribune, announced it will stop matching employee 401(k) deferrals starting April 1 (see “Newspaper Company Suspends 401(k) Match, Profit-Sharing Contributions’).

Media News Group, owner of the Denver Post, announced its match suspension in a December 24 memo to employees (see “Denver Post Latest to Suspend 401(k) Match’).

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