New research has shed light on a concerning trend within the gambling industry: Chief Financial Officers (CFOs) experience the lowest job security among their counterparts in the C-Suite.
The findings, sourced from Datarails, are based on an analysis of SEC filings from 2022 and 2023, encompassing reports from 10 prominent casino and gaming companies, including industry giants such as Caesars, Boyd Gaming, and Penn Entertainment. The C-Suite comprises a company’s senior executives and management, including key roles such as the CEO, CFO, and COO.
Despite CEOs commanding an average salary of $11.3 million, the research reveals a stark contrast in the compensation of CFOs and COOs, with CFOs earning $4.5 million and COOs receiving $3.5 million on average.
However, the disparity in compensation is paralleled by the tenure of executives in these roles. CFOs, in particular, face precarious job security, with an average tenure of only three years out of the five-year period studied. Comparatively, CEOs typically remain in their positions for 3.2 years.
In contrast, executives appointed as Chief Marketing Officers (CMOs), COOs, and CTOs demonstrate greater longevity, with many fulfilling their roles for the entire five-year period under examination.
The research highlights notable case studies, such as MGM Resorts, which has seen turnover in its CFO position over the past five years. Executives including Dan D’Arrigo, Corey Sanders, and Jonathan Halkyard have successively held the role. The departure of D’Arrigo in 2019, after over a decade in the position, attributed to a cost-cutting strategy, underscores the volatility of CFO positions within the industry.
Similarly, recent transitions in the CFO role at Inspired—from Stewart Baker to Marilyn Jentzen—underscore the fluid nature of executive appointments within the gambling sector.
While the research does not provide a definitive explanation for the heightened turnover among CFOs, it prompts reflection on the evolving responsibilities and challenges facing financial executives within the gambling industry. A deeper understanding of the role of the CFO is explored in the cover feature of the July/August issue of Gambling Insider magazine.
The research findings highlight the precarious nature of CFO positions within the gambling C-Suite, underscoring the need for further examination and discussion within the industry. As companies navigate the complexities of the evolving gambling landscape, understanding and addressing the factors contributing to CFO turnover is essential for promoting stability and sustainability.
