LAS VEGAS (CelebrityAccess) Mark Frissora, CEO of Caesars Entertainment Corporation, will be stepping down from his position in February.
A search for Frissora’s replacement will be led by four members of the Compensation and Management Development Committee as well as the chairman of the board, which will work with a search firm, according to an announcement.
The announcement, which is considered a forced exit by the media, has led to speculation that Caesars is now open to a sale, according to the New York Post. Frissora was largely seen as opposed to selling, and the company announced yesterday it had rejected an offer from the Golden Nugget casino chain in a reverse merger, but Caesars largest shareholder, Apollo Global Management, is not opposed to a sale, according to a source.
Apollo was behind Frissora’s hiring when part of Caesars was in bankruptcy, according to the Post.
The announcement came the same day as Caesars released its third-quarter report; its stock jumped 9 percent in after-hours trading following the announcement. Under Frissora, Caesars shares fell more than 20 percent, according to CNBC.
“The Board of Directors thanks Mark for his instrumental role in leading the Company through a challenging period and setting Caesars on a course for sustained, long-term growth and value creation,” said Jim Hunt, Chairman of the Board of Directors. “Under Mark’s leadership, the Company has significantly improved margins and profitability while simultaneously increasing customer and employee satisfaction. We are grateful for his leadership and numerous contributions and are optimistic for the future.”
Frissora said, “I have been privileged to lead this iconic Company and am proud of all that our team has accomplished. Together, we navigated a complex restructuring process. We have improved our margins significantly and created enterprise value which enabled the successful reorganization of our Caesars Entertainment Operating Company subsidiary. I am confident that the Company is well positioned to thrive and grow in the future. I am committed to maintaining stability and operating discipline during this transition.”
Frissora was previously CEO of car rental company Hertz.