Elaine Wynn Ousted From Company Board

Results of the election of new board members for Wynn Resorts were announced last week, and Elaine Wynn, one of the co-founders of the company, failed in her attempt to get re-elected. The two candidates submitted by the board prevailed.

Elaine Wynn’s fight to remain on the board of the company she co-founded, Wynn Resorts, is over. Last week the company announced that the two candidates nominated by the board, John J. Hagenbuch and J. Edward Virtue, were elected by an undisclosed margin.

“While I am certainly disappointed by the result of today’s vote, I am hopeful that I have once again served as an agent for change and improvement for this company, which I love so deeply,” Elaine Wynn said in a statement.

The former wife of the chairman, Steve Wynn, was criticized by the board on several points, including conflicts of interest and being disruptive.

Prior to the announcement of the results, three proxy firms had split on her re-election. San Francisco-based Glass Lewis, an independent proxy advisory firm, recommended that shareholders elect the Wynn board candidates. A separate adviser, Haverford, Pennsylvania-based Egan-Jones Proxy Services, backed Elaine Wynn, while a third company said a vote for any of the proposed candidates were wasted, harshly criticizing the company’s corporate structure and operations.

Steve Wynn was required to vote for Elaine because of a shareholder agreement between the two that prohibits Elaine from selling her almost 10 percent stake in the company without board approval. But with the loss, observers expect Elaine Wynn to challenge that agreement, freeing up a possible sale of her shares.