This year has been one of the tensest for casino developer Wynn Resorts ever since the last days of January brought the accusations against the company’s former Chief Executive Officer Steve Wynn and sexual misconduct allegations. His ex-wife, Elaine Wynn remained the largest shareholder in the structure of Wynn Resorts and now she questions some of the conditions under which outgoing General Counsel Kim Sinatra is going to leave the company.
Ms. Wynn is now the largest shareholder in the structure of the casino operator Wynn Resorts with some 8.8 percent of the stock after her former husband Steve Wynn filed his resignation letter in February and subsequently sold his entire share in the company. This gives her the power to make demands and seek changes in the way the casino operator works, which is what Ms. Wynn has been doing for the past several months. The campaign he leads goes by the name of “Restore Wynn”.
According to her plan the management of the casino operator had to be entirely changed since many of the people currently part of it have been aware of Wynn Resorts former CEO’s sexual misconducts. Her efforts to bring change to the way the casino operator works led to the eventual ousting of Board member John J. Hagenbuch, closely followed by the resignation of another Board member, Robert J. Miller.
It is not a secret to anyone that she is seeking the improvement of the casino developer which could be achieved with the help of an entirely new staff. Last week saw the news that one of the leading positions in the structure of the casino operator, the company’s Executive Vice President and General Counsel Kim Sinatra, is planning on stepping down from her position. She is going to officially resign on 15th July.
Ms. Wynn Debates Ms. Sinatra’s Existing Contract Terms
According to the information provided by Ms. Wynn, Ms. Sinatra has been aware of the existing $7.5-million arrangement between the company’s former CEO and his employee accusing him of sexual misconduct. Her leave will be accompanied with a $9.5-million severance pay which was promptly questioned by Ms. Wynn.
Her lawyers filed in a statement stating that if Ms. Sinatra’s departure is considered to be caused by a previous situation, the possibility of her receiving salary in the future becomes slim. According to the previously signed agreement between her and Wynn Resorts, at the instance of a contract termination without a cause, she is set to receive an annual salary of $1 million in addition to a grant of as much as 100,000 shares up until 2020.
Ms. Wynn made it clear that she also demands that the operator requires a clawback provision if over the span of the future investigation Ms. Sinatra refuses to provide her help to the authorities. In addition to these demands related to the outgoing General Counsel of Wynn Resorts, Ms. Wynn also renewed her efforts to completely change the Board of Wynn Resort.
The spur of efforts she demonstrates comes after the casino developer was quick to dismiss her proposal for Phil Satre, ex-CEO of Harrah’s Atlantic City for the position of a Board Member. This resulted in Ms. Wynn reignited efforts to achieve her goal of an entirely new Board of Directors for Wynn Resorts which has the potential to bring innovation to its future operation.