• Following discussions with shareholders, Penn is poised to lower CEO Snowden’s 2026 pay
• The compensation committee is proposing a 41% reduction in his long-term incentive plan (LTIP) and a 31% overall cut to remuneration
• The stock is down 80.41% over the past five years

Following pushback from shareholders and activist investors, Penn Entertainment (NASDAQ: PENN) has proposed a 31% reduction to CEO Jay Snowden’s compensation package.

Following discussions with select investors, the compensation committee of the regional casino operator is proposing major adjustments to Snowden’s long-term incentive plan (LTIP), as well as his overall 2026 compensation after investors rebuffed a 2025 pay scheme that would have seen him earn $25.3 million.

Under the new plan, the CEO could earn up to $17.4 million this year.

Lowered the target grant value of the CEO’s 2026 equity awards by $7.87 million, equivalent to a 41% reduction in LTIP opportunity and 31% reduction in total target direct compensation compared to 2025, effectively resetting his total target pay to 2023 levels,” according to a proxy filing with the Securities and Exchange Commission. “This decision followed the peer group update and strategic realignment as described below, and was made in consultation with the Committee’s independent compensation consultant and with the support and agreement of CEO Jay Snowden.”

Snowden became CEO of the nation’s largest regional casino operator in January 2020.

Snowden Drift

Over the past five years, shares of Penn are off 80.41% — a source of consternation for investors, including some that criticized the board for continuing to heap what they viewed as excessive compensation upon Snowden as the stock flailed.

Penn is now turning to a performance-based, including performance stock units (PSUs) tied to total shareholder return (TSR), which is common gaming industry practice.

“Beginning with the 2026-2028 performance cycle, the PSU grant will be tied to the achievement of a cash flow from operations goal (100% financial metric), with a relative TSR payout modifier (±20%) measured against the Russell 3000 Casino and Gambling Index,” according to the proxy statement.

“This incentive structure is designed to drive cash generation across our retail and digital operations, support disciplined capital allocation and better align our long-term financial performance with shareholder interests. These LTIP changes also address our shareholders’ preference for diversified metrics across short- and long-term incentive plans.”

Penn Alters 2026 Compensation Peer Group

It’s common for executives of publicly traded companies to have their pay packages fashion in form similar to industry peers. On that note, Penn’s compensation committee altered the peer group from which Snowden’s and other executives’ pay plans draw inspiration.

Gone are Electronic Arts, a live events company, a movie studio and a satellite radio provider, among others. In are two cruise operators, a pair of hotel chains and two gaming companies — Churchill Downs (NASDAQ: CHDN) and slot machine maker Light & Wonder (LNW).

Churchill Downs makes for a relevant compensation comparison for Penn because the former also operates regional gaming venues, some of which are in the same regions as Penn properties.