LVCVA board rewards CEO Hill with $40.6K raise, $203.5K bonus
The Las Vegas Convention and Visitors Authority board of directors on Tuesday rewarded its president and CEO, Steve Hill, a $40,602-a-year raise and a one-time $203,458 bonus for the work he did bringing the city’s tourism economy back from COVID-19 doldrums.
The 10 percent pay increase brings Hill’s annual salary to $447,608 a year, still below the average of many of his national contemporaries based on surveys conducted by the LVCVA. The bonus was 50 percent of his salary.
The 50 percent bonus level was a one-time boost beyond the LVCVA compensation committee’s earlier policy of a maximum 40 percent bonus. A modification to increase bonuses by 125 percent of previous policy was authorized with a unanimous board vote Tuesday.
LVCVA Board Chairman John Marz, who wasn’t present at Tuesday’s meeting, explained his reasoning for granting higher bonuses than originally planned. Vice Chairman Anton Nikodemus, an MGM Resorts International executive, read Marz’ statement into the meeting record.
“I believe Mr. Hill is deserving of a significant merit increase and a bonus beyond his base wage range,” Marz wrote, noting two primary reasons.
“Our CEO is paid well below the average of CEOs of comparable destination marketing organizations. This is despite the fact that we are the most significant DMO in the country and the only DMO that also runs a convention center. The convention center is also the most successful convention center in the country.
Two-for-one CEOs
“We’re getting two CEOs for the price of one and even a 10 percent pay adjustment wouldn’t get him to the market average; it would only get him closer,” his statement said.
Marz’s statement noted Hill’s last bonus was in 2019, “and this organization has done a tremendous job over these past three years.
“We not only survived unprecedented challenges, but we accomplished major milestones with those significant results,” Marz wrote. “We’ve exceeded national averages in our recovery and we are creating an environment for great success in the future. From innovative marketing programs to securing a Super Bowl and creating a Formula One Vegas Grand Prix, to stabilizing the (Las Vegas) Monorail and creating a path for a destinationwide innovative transportation system, and adding almost 1 million square feet of additional meeting space with the West Hall expansion. The LVCVA is making the destination as meaningful as ever.”
Board members said the raise and bonus were based on Hill’s efforts to guide the tourism rebound for Southern Nevada. The visitation rebound helped generate record room tax revenue in 2021-22 with $294 million deposited into the LVCVA’s general fund, beating the previous high of $286 million in 2019.
Other executives and LVCVA employees weren’t left out.
Legal counsel Caroline Bateman received a 7 percent salary increase to $219,572 with a 25 percent bonus of $51,302.
Evaluations ahead
Hill is expected to evaluate other top-level executives in the next few weeks.
The LVCVA’s compensation committee has recommended salary ranges of $259,000 to $363,000 and a bonus of between 0 and 37.5 percent for the chief marketing officer and the chief sales officer; salary ranges of $187,000 to $262,000 and a bonus of between 0 and 25 percent for the chief financial officer and chief operating officer; and salary ranges of $159,000 to $223,000 and a bonus of between 0 and 25 percent for the senior vice president of communications.
The LVCVA’s front-line workers, 240 union employees, received a 4 percent pay increase and a lump-sum bonus of $2,250 per worker on July 1.
A contract modification with the Service Employees International Union Local 1107 approved in June is costing $19.3 million including additional retirement and Medicare benefits expenses.
Board member Brian Gullbrants, an executive with Wynn Las Vegas, thanked Hill and his executive team for their efforts.
“You guys have done an outstanding job over the last year,” Gullbrants said prior to the vote. “I’ve only been here a year, but I can see meaningful differences and your accomplishments are outstanding.”
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.
Other board actions
The Las Vegas Convention and Visitors Authority board unanimously approved several more initiatives:
-The board authorized paying $270,000 to the Ice Agency to design a booth and $283,500 for booth space at the 2022 IMEX America global meetings and events expo Oct. 10-13 at Mandalay Bay. It's part of a $625,000 package, $140,000 of which the LVCVA expects to be recouped from resort partners.
-Through Las Vegas Events, the board approved spending $900,000 over three years in March 2023, 2024 and 2025 to sponsor the West Coast Conference men's and women's basketball tournaments at the Orleans Arena. The conference includes teams from Gonzaga; Saint Mary's; Santa Clara; BYU; San Diego; San Francisco; Loyola Marymount; Pepperdine; Pacific; and University of Portland. The tournament is expected to draw more than 4,000 out-of-town visitors and generate an estimated total economic impact of $7.6 million. ESPN and ESPN 2 will broadcast six tournament games per year including the semi-finals and finals.
-The board authorized spending $939,000 over five years for cooperative agreements with the Las Vegas Metropolitan Police Department to fund the Tourism Intelligence Analyst within the Southern Nevada Counter Terrorism Center.
-The board authorized President and CEO Steve Hill to negotiate a settlement in litigation the LVCVA has against P2M Motorsports LLC that began in March 2021.
