The CEO at MGM Resorts, which has increased women in management and invested in solar panels to power its casinos, says investors don’t care enough about those issues.
MGM Resorts International has increased the number of women in management and invested in solar panels to power its casinos. Chief Executive Officer James Murren says investors don’t care enough.
“I find it very hypocritical that investors talk about wanting companies with a good conscience, but they’re really looking for companies that are going to make them a lot of money in the stock,” Murren said at Bloomberg’s Business of Equality Summit in New York on Tuesday. “They talk a good game, but they don’t invest with their integrity at the forefront. I think there’s a huge problem there.”
MGM, the largest owner of casinos on the Las Vegas Strip, trades at a lower multiple of earnings than rivals Las Vegas Sands and Wynn Resorts, Murren said.
“People aren’t differentiating between the culture we’ve developed,” Murren said. “If they are, they’re not weighing it the same as how much money do you make in Macau.”
Most Read Business Stories
- Boeing indefinitely extends factories' coronavirus shutdown; here's what that means for 30,000 workers
- REI keeps stores shut and furloughs many of its workers for 90 days; CEO gives up pay for six months
- Grocery workers are dying of coronavirus
- Seattle area's March home prices jumped, before coronavirus pandemic took hold
- Alaska Air cuts flights further for April and May as coronavirus crisis deepens
Murren has emerged as one of the more progressive leaders in the casino industry. A lifelong Republican, he supported Hillary Clinton in the 2016 presidential election. The company owns a women’s professional basketball team, the Las Vegas Aces, and this year released an album of love songs re-imagined for same-sex weddings.
The executive, a former casino analyst recruited to the company by founder Kirk Kerkorian, said the industry was a “good old boy network” when he joined 20 years ago. Inspired by his wife, Heather Hay Murren, a onetime consumer-products analyst at Merrill Lynch, and “how much harder she had to work” than her male counterparts, Murren said he began promoting more women managers and equal pay.
One-third of MGM casino presidents are women, up from zero in 2000, Murren said. Some 44 percent of managers overall are female, and 68 percent of employees are minorities.
Corporate clients looking to book meetings appreciate some of the company’s efforts to improve its environmental consciousness, Murren said. Leisure travelers don’t seem to care, something that hasn’t discouraged him.
“We’re going to do it anyway,” he said.