\nBy HOWARD STUTZ
\n\tLAS VEGAS REVIEW-JOURNAL
\n\tCaesars Entertainment Corp. Chairman Gary Loveman will step down from the company\u2019s chief executive role on June 30 and will be replaced by the former chairman CEO of Hertz Global Holdings, the casino giant announced Wednesday.<\/p>\n
\tIn a statement Wednesday, Caesars said Mark Frissora, who spent seven years with the automobile and equipment rental car company, will be \u201cCEO designee\u201d until July 1, when he formally becomes CEO.<\/p>\n
\tThe change comes less than a month after Caesars placed its largest operating unit into a pre-packaged bankruptcy to eliminate almost $10 billion in debt. The reorganization, overseen by the U.S. Bankruptcy Court in Chicago, may take up to a year to finalize.<\/p>\n
\tLoveman, 54, whose employment agreement last year was extended through 2016, will remain as the company\u2019s chairman.<\/p>\n
\tLoveman, who has been with Caesars since 1988 and is one of the gaming industry\u2019s longest-tenured CEOs, has been one of the highest paid casino executives in recent years. According to the company\u2019s most recent proxy statement, Loveman earned more than $7.6 million in salary and other compensation in 2013. In 2010, Loveman earned more than $18.2 million in total compensation.<\/p>\n
\tCaesars operates almost 40 casinos in 13 states, including nine resorts on or near the Strip. Among the company\u2019s Las Vegas holdings are Caesars Palace, Harrah\u2019s Las Vegas, Bally\u2019s Las Vegas, the Rio, Planet Hollywood and the Linq retail, dining and entertainment complex.<\/p>\n
\tIn a statement, Loveman said the time for a transition was \u201cripe\u201d amid formal restructuring of its Caesars Entertainment Operating Co.<\/p>\n
\t\u201cMy decision to begin to transition management now comes with the confidence that we have taken the steps necessary to ensure the company\u2019s long-term success,\u201d Loveman said. \u201cI am proud of the company\u2019s many accomplishments and grateful for the loyalty and friendship of my thousands of colleagues.\u201d<\/p>\n
\tIn a statement, Frissora, 59, said he was joining Caesars at an important time for the company.<\/p>\n
\t\u201cCaesars\u2019 network and range of offerings and amenities make it a true leader in gaming, entertainment and hospitality,\u201d Frissora said. \u201cI am looking forward to working closely with Gary, the board and the leadership team to ensure a smooth transition.\u201d<\/p>\n
\tLoveman, a former Harvard Business School associate professor, joined what was then Harrah\u2019s Entertainment as chief operating officer. He became CEO in 2003, and presided over the company\u2019s massive growth.<\/p>\n
\tIn 2004, Harrah\u2019s bought both Horseshoe Gaming and the World Series of Poker. In 2005, the company spent $9 billion to acquire Caesars Entertainment.<\/p>\n
\tHarrah\u2019s took the Caesars name in 2008 and went private in a $30.7 billion transaction led by private equity firms TPG Capital and Apollo Global Management. The deal left Caesars with a gaming industry high $22.8 billion in long-term debt, which the company has tried to restructure.<\/p>\n
\tLoveman is credited with overseeing development of Total Rewards, the company\u2019s 40-million-player loyalty program, and creating Caesars Interactive, a division that houses the World Series of Poker and Caesars online and social gaming products.<\/p>\n
\tIn a joint statement, Apollo founder Marc Rowan and TPG founder David Bonderman credited Loveman for his \u201cvision and passion\u201d in building the company.<\/p>\n
\t\u201cWe respect Gary\u2019s desire to begin transitioning the management of the company at this time,\u201d they said.<\/p>\n
\tFrissora was appointed CEO of Hertz in 2006, before the company\u2019s initial public offering. He oversaw Hertz\u2019s 2012 acquisition of Dollar Thrifty Automotive Group Inc., which shrank the number of major rental-car companies to three from four.<\/p>\n
\tAccording to Bloomberg News, Frissora cited personal reasons in his resignation from Hertz last September. However, investors in the Naples, Fla.-based company reportedly pushed for his removal, citing accounting and operational missteps.<\/p>\n
\tFrissora is credited with expanding Hertz from a single-brand, airport rental car company to a global organization with four retail brands and more than 3,000 off-airport locations.<\/p>\n
\tPrior to joining Hertz in 2006, Frissora was Chairman and CEO of Tenneco, an auto parts maker.<\/p>\n
\t\u201cMark has a long history of driving growth, optimizing operations and creating shareholder value,\u201d Bonderman and Rowan said on behalf of the Board. \u201cWe are confident that his efforts combined with the restructuring \u2026 will help create long-term shareholder value at Caesars.\u201d<\/p>\n
\tLoveman in the past year oversaw direct talks with lenders and bondholders that led to the Jan. 15 bankruptcy filing. The restructuring of Caesars Entertainment Operating Co. will eliminate almost $10 billion of the division\u2019s $18.4 billion debt load. Loveman will continue to oversee the process.<\/p>\n
\tCaesars is seeking court approval to convert CEOC into a publicly traded real estate investment trust. CEOC controls Caesars Palace, Caesars Atlantic City, Harrah\u2019s Reno and more than a dozen regional properties.<\/p>\n
\tThe REIT concept would split CEOC into two companies, including one owning real estate for many of the company\u2019s casinos. A second company would manage the properties and pay a rent to the ownership company.<\/p>\n
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