MGM Resorts International

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Very Bearish -75

MGM lands spot in report on S&P 500 ‘low-wage 20’ firms

📊 A new Institute for Policy Studies (IPS) report identifies MGM Resorts International as one of the S&P 500's "Low-Wage 20" firms using social safety net assistance.

💰 MGM CEO William Hornbuckle received $15.8 million in 2024 compensation while workers earned a median annual pay of $47,607.

🤵‍♂️ This results in a CEO-to-worker pay ratio of 332-to-1 for MGM, which is lower than the report's average ratio of 899-to-1 for the "Low-Wage 20."

📍 MGM was the only company on the "Low-Wage 20" list headquartered in Nevada and had a median pay higher than Costco.

💸 The report claims these firms use public assistance as "corporate welfare," enriching executives while paying poverty wages to employees.

⚖️ Nearly 60% of MGM's U.S. workforce is covered by union collective bargaining agreements, contributing to its relatively higher median wage among the list.

🏥 MGM Resorts is one of only five companies on the list where median wages exceed the Medicaid eligibility threshold for a family of three.

🛒 Other notable firms like Kroger, Walmart, and Amazon are criticized for shifting living costs onto taxpayers through similar benefit usage.

📉 The average median pay across all 20 companies was $29,087, significantly below the Census Bureau's rent affordability threshold of $59,600.

👥 MGM employs 63,000 full-time, part-time, seasonal, and temporary workers in the U.S. according to 2024 SEC filings.

🗺️ Nevada's unique laws allow for data collection on Medicaid enrollment, unlike other states which are not required to disclose such information.

🤝 The IPS report calls for state governments to adopt similar disclosure laws and strengthen labor rights protections against anti-union tactics.

🛒 Walmart is noted as the leader in SNAP benefit redemption, receiving nearly 26% of all SNAP dollars in a recent study period.

📊 Amazon had the largest number of workers on Medicaid among Nevada employers despite having median wages below the eligibility threshold.

⚠️ CEO compensation at some firms like Starbucks also ranked highly within the "Low-Wage 20," highlighting income disparity trends.

💬 MGM Resorts did not respond to requests for comment regarding the findings in the report.

Bullish Signals
  • MGM Resorts International had the highest median annual pay among all 20 companies listed in the S&P 500 'Low-Wage 20' report, with a median salary of $47,607.
  • MGM's CEO-to-worker pay ratio of 332-to-1 was significantly lower than the average for the Low-Wage 20 group, which stood at 899-to-1.
  • MGM's median wage exceeds the Medicaid eligibility threshold for a family of three, placing it in a positive tier among five companies recognized for this distinction.
  • Nearly 60% of MGM Resort employees are covered by collective bargaining agreements, contributing to relatively higher wages compared to competitors like FedEx and Costco.
  • MGM employs 63,000 full time, part time, seasonal and temporary employees in the U.S., demonstrating substantial workforce scale according to SEC filings from 2024.
Risk Factors
  • MGM's CEO William Hornbuckle received $15.8 million in compensation in 2024, resulting in a CEO-to-worker pay ratio of 332-to-1, which exceeds the S&P 500 average of 285 to 1.
  • The company is listed as one of the 20 largest U.S. employers that rely heavily on social safety net assistance, described as corporate welfare by the Institute for Policy Studies (IPS).
  • MGM employs over 63,000 workers in the U.S., yet its median wage was flagged as below the income needed to afford the average U.S. rent for a two-bedroom apartment.
  • While MGM has the highest median pay among the 'Low-Wage 20' at $47,607, it still falls under the Medicaid eligibility threshold for a family of three in Nevada, where nearly 60% of employees are unionized.
  • The report suggests that taxpayers are effectively subsidizing business models based on poverty wages, with MGM being one of five companies listed where median pay exceeds Medicaid eligibility thresholds but still relies on public assistance programs.
  • Nevada's unique data collection revealed that a significant number of MGM employees may rely on public aid, contributing to concerns about affordability and corporate welfare practices.
  • The report highlights broader concerns about low-wage firms using anti-poverty programs to benefit their business models while contributing to the national affordability crisis.
Full Analysis
A new report released by the Institute for Policy Studies (IPS) has identified MGM Resorts International as one of the top 20 largest U.S. employers of low-wage workers within the S&P 500, a group dubbed the "Low-Wage 20." The analysis highlights that while MGM employs approximately 63,000 full-time, part-time, seasonal, and temporary employees in the United States, the CEO-to-worker pay ratio for William Hornbuckle stands at 332-to-1. Hornbuckle received $15.8 million in compensation during 2024, compared to a median worker pay of $47,607. This places MGM as the only company on the list headquartered in Nevada and the only one with a median wage above $59,600, slightly exceeding Costco at $47,092, though still well below the U.S. average rent affordability threshold for a two-bedroom apartment of roughly $59,600 according to Census Bureau data. The report critiques these corporations for utilizing social safety net assistance as corporate welfare, thereby contributing to an affordability crisis while enriching executive leadership and paying workers poverty-level wages. IPS Director Sarah Anderson argues that corporations often shift the cost of employees' basic living expenses onto taxpayers while finding ways to cycle money back into company profits. For example, the report notes that MGM is one of five companies in the "Low-Wage 20" where median wages exceed the Medicaid eligibility threshold for a family of three, alongside Costco, FedEx, Tyson Foods, and Amazon. Anderson points out that grocer chains like Kroger and Walmart further exploit public programs like SNAP, with Walmart receiving nearly 26% of all SNAP dollars in a recent study period, effectively subsidizing their low-wage business models. Nevada's unique legal framework is highlighted as a key factor enabling this level of scrutiny, as it requires the state government to collect and publish data on Medicaid enrollment among large company employees, unlike most other states. Under this Nevada-specific data collection law, MGM has 63,000 U.S. workers, while Walmart had 4,574 Nevada employees enrolled in Medicaid in 2024, representing 29.3% of the state's total Walmart workforce. Amazon was similarly notable with 8,951 employees on Medicaid in Nevada, accounting for an estimated 48.4% of all its state workers. The report recommends that other state governments adopt similar disclosure laws and calls for strengthened labor rights protections to counter aggressive anti-union tactics faced by many workers within the "Low-Wage 20," noting that nearly 60% of MGM Resort employees are covered by collective bargaining agreements compared to lower percentages at companies like Costco.