Harrah's top Nevada exec leaves in shakeup

Hector Mon, the highly respected president of Harrah's Entertainment Inc.'s Nevada operations, resigned Thursday in the midst of yet another shift in the casino company's organizational structure.

Mon's resignation, which Harrah's insiders have been predicting for months, came as the company announced the realignment of its brand divisions and several new executive appointments.

Mon is the latest in a long line of Harrah's executives who have resigned or been terminated over the past year as the company has undergone a series of changes highlighted by the growing power of former Harvard business professor Gary Loveman.

Loveman, 37, had spent five years as a consultant to Harrah's before joining the company full-time last spring after leaving his Harvard post. Since then, Loveman has hired several associates to replace long-term company executives, according to former Harrah's employees who asked not to be identified.

Mon's responsibilities as president of Harrah's Nevada division had been significantly reduced in the past year, the sources said. But he was still "technically" in charge of all Nevada operations, according to a current Harrah's Las Vegas official who also requested anonymity.

Mon had spent 23 years with Harrah's, moving up through the ranks and becoming a favorite of company Chairman Phil Satre, to whom he reported directly. But in December, Satre announced formation of the Harrah's "office of the president" -- a triumvirate that included Satre, Loveman and Colin Reed, the company's chief financial officer.

As a result, Mon reported to Loveman, as did several other executives who had previously enjoyed unfettered access to the chairman.

Other factors that led to disquiet in the executive ranks over the past year, according to the former employees, included the firings of several marketing executives at Harrah's Memphis headquarters and in Nevada after what Satre described as "costly and unsuccessful marketing efforts" damped earnings at Harrah's Las Vegas last summer.

In addition, the company's acquisition of Rio Hotel & Casino Inc. -- with its all-suite configuration, swanky restaurants and high-end casino clientele -- created morale problems at Harrah's flagship Las Vegas Strip property, the former employees said.

And last month, the company said it would relocate its headquarters to Las Vegas, moving 50 senior corporate executives and staff members here by August.

Neither Mon nor Satre could be reached for comment, and Harrah's executives in Memphis didn't respond to inquiries.

But in Thursday's announcement, Harrah's said 23-year employee Tom Jenkins, 44, was named the new general manager for Harrah's Las Vegas.

The company also said the realignment will create three multi-property brand divisions, while The Rio, Showboat and Harrah's New Orleans divisions will remain the same.

The division presidents, Harrah's said, will report to Loveman.

"This realignment allows the division presidents to focus more regionally to build the Harrah's brand name and take advantage of our customer-loyalty building opportunities," Satre said in a statement.

Carlos Tolosa, 49, was named president of the Western division that includes all Harrah's brand Nevada operations and the Harrah's Ak-Chin casino near Phoenix. Tolosa has been with the company since 1971 and most recently headed its Indian Gaming division and certain Tunica and Northern Nevada operations.

Anthony Sanfilippo, 40, assumed control of the new Harrah's brand Central division, which includes riverboats in Missouri, Mississippi and Shreveport, La.,, as well as the Harrah's Prairie Band-Topeka casino. A Harrah's employee since 1983, Sanfilippo became a division president in 1994.

Division President Tim Wilmott, 40, adds Harrah's Cherokee in North Carolina to his Atlantic City and Chicago-area responsibilities, which now will be considered the Harrah's brand Eastern division. Wilmott is a 12-year Harrah's employee.