Question of the Day - 04 May 2018

According to a regulatory filing, Wynn’s employment agreement entitled him to as much as $330 million if he were fired "without cause." But if he were terminated due to a failure to follow policy or comply with the “lawful directions of the company,” the board had the right to give him bupkis. Which is exactly what it did. And what he got.

So in this case, it didn't matter if he quit or was fired; because of the allegations of sexual predation, he was destined to wind up without severance either way.

In addition, he lost his administrative assistant (May 31), had to vacate his villa by June 1 (he's already moved out, the subject of tomorrow's QoD), and gives up his health insurance (December 31). 

All this enforced by a board of directors that "reluctantly" accepted the resignation of a “beloved leader and visionary." The language was in keeping with Bloomberg’s assessment of the board as "weak" and deferential to Steve Wynn. Proxy-advisory service Institutional Shareholder Services gave it the worst rating for corporate-governance risk. The New York Times Deal Book wrote, “The board did not have a track record for holding Mr. Wynn accountable.” And shareholder lawsuits filed since the Wall Street Journal revelations about his sexual misconduct allege that board members lacked independence, due to their business relationships and/or friendships with Wynn. 

Finally, Wynn being Wynn, it’s in keeping with how he operates. He likes to control the narrative. You might recall how insistent he was that Kirk Kerkorian didn’t take over Mirage Resorts, that it was a friendly transaction. Same psychology at work here. By quitting, Wynn left as his own man, albeit without compensation and perks, and we think that was a big part of the psychological bottom line.

There's also pride, of course. “The Wynn Resorts team and I have built houses of brick,” he wrote in parting. “Which is to say, the institution we created — a collection of the finest designers and architects ever assembled, as well as an operating philosophy now ingrained in the minds and hearts of our entire team — will remain standing for the long term. I am extremely proud of everything we have built at this company. Most of all, I am proud of our employees.”

We believe he has every reason and right to be proud. In the late '80s, when Vegas was at one of the lowest ebbs in its history, Wynn built and opened the Mirage, launching an expansion boom that might be unmatched in all of history. Steve Wynn can be Steve Wynn without Las Vegas. But Las Vegas could never have become what it is without Steve Wynn.

On the other hand, "... our employees," we can't help thinking, might or might not include those on whom Wynn is accused of preying (one of them settled with him for $7.5 million) and, in the end, brought him down.