Wynn Resorts continues its ongoing efforts to remedy the inconvenient situation which occurred several months ago and is still impacting its operation and reputation. It became clear that the current largest shareholder in the company, Elaine Wynn is in a conflict situation with the board of directors as she expressed her desire to oust John Jay Hagenbuch from the company since he is associated with her ex-husband and previous Chief Executive Officer of Wynn Resorts Steve Wynn.
The situation is getting more and more complicated as more individuals are being added to the already tangled status quo. This week brought a rapid turn of events involving Ms. Wynn and her demands expressed for the voting out of Mr. Hagenbuch. He oversees an investigation into the sexual misconduct scandal allegations which revolve around the company ever since January. According to her previously stated position, the only way in which the casino resort is going to make it out of the complicated situation is if there are substantial changes in the current board members.
She claimed that many of the board members are friends and supporters of Steve Wynn and those same people still have control over future plans for development and the general direction in which the company is going to develop. In her strive to improve the current situation and potentially bring back the trust in the company and its beliefs, Ms. Wynn expressed her intentions to alter the structure of the board and to introduce new directors to it. She stated that in order to bring back the trust of fellow casino operators, investors, and authorities, the company’s leading positions should go through a makeover and the board of director should be changed.
Attempt to Oust Board Members
According to her, all changes should have been effective at the 2018 annual meeting of the company. Now Ms. Wynn claims that her intention to speak directly with the shareholders in the company are being prevented and this puts a spike in the wheel of her plans. In response to that, she took things to court this Wednesday and is now suing the casino developer in an attempt to potentially postpone the shareholder meeting which was originally scheduled to take place on 16th May.
Her attempts to bring change thus meet the stern positions of the current management of the company which remains comprised of people closely associated with the company’s previous CEO. However, according to the statement issued by Wynn Resorts in relation to the most recent happenings, there has been an attempt made for a meeting between the company and Ms. Wynn aiming to enter a discussion regarding the future plans for the company and its current position in the gambling field.
This Wednesday also witnessed the casino operator advising its shareholders to give their vote of approval to three independent incumbent directors, namely John Hagenbuch, Betsy Atkins, and Patricia Mulroy on the said meeting of the shareholders which could take place this month. The board of directors’ final position was that Ms. Elaine’s decisions are not in the best interest of investors and shareholders in the operator.