When the need for change in Wynn Resorts became clear several weeks ago Elaine Wynn made her position known and stated that she is going to follow her ultimate goal to reshuffle the management of the casino operator. Next week is expected to bring the long-anticipated annual meeting which has the potential to alter the entire situation with the help of a voting.
Over the span of the last month Wynn Resorts co-founder Elaine Wynn has been leading a battle which aims to see substantial changes in the board of directors which could have the potential to bring a breath of fresh air to the company and possibly improve its current reputation in the public space. The casino operator continues its ongoing efforts to remedy the inconvenient situation which occurred several months ago involving former Chief Executive Officer Steve Wynn and the sexual misconduct allegations unearthed at the end of January. The revelations are still having their impact on its operation as well as on the way people in the industry perceive the brand.
Steve Wynn’s ex-wife is now the largest stakeholder in the casino developer following Mr. Wynn sale of his entire 12-percent stake for $2.1 billion, which gives her the power to seek changes and work on them. The beginning of this month saw a conflict situation between her and 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. Her official argumentation regarding her demands is that MR. Hagenbuch Is a close friend of Mr. Wynn and there is no place neither for him nor for any other of the close friends of the former CEO in the board of directors.
Restore Wynn in Action
Now Ms. Wynn had given green light to her new campaign called “Restore Wynn” and her first move would be to put her efforts into ousting Mr. Hagenbich and potentially salvaging the reputation of the major casino operator and developer. In order for this to happen board members should be prevented from voting for his reelection on 16th May.
Among her reasons for seeking this was the fact that she wants a board of directors which is future-oriented and looking to lead the brand in another more positive direction. It should be taken into account that Ms. Wynn herself does not look for a place for her on the board and her ongoing campaign seeks improvement only.
However, as the scheduled meeting rapidly approaches Ms. Wynn has no luck in arranging a meeting between her and the newest board members of Wynn Resorts’ board. This Friday saw her sending a letter to the casino developer’s Chairman Boone Wayson with a second request that she meets the three new independent directors. Since she is the largest shareholder at the moment there should be a meeting between them before the annual meeting next week, a previous request for which had been denied.
In response to this, a spokesperson for the casino operator made it clear that the entire board is going to meet Ms. Wynn at the annual meeting and once the new board members have had the chance to first meet the rest of the board of directors.