Kim Sinatra is the latest Wynn Resorts executive to depart in the wake of the sex scandal that forced Steve Wynn, Wynn Resorts chairman and founder, to resign and sell his interest in the company. Sinatra stepped down as executive vice president and general counsel for the company, which informed the Securities and Exchange Commission that Sinatra has “ceased to serve” as those position in a one-sentence revelation.
Sinatra had been elevated to the number-two position in the company following Wynn’s departure, second only to CEO Matt Maddox. But her ascendancy was always shadowed by the company’s failure to reveal the multi-million dollar settlement made by Wynn Resorts (via a third corporate entity) with a woman who claimed to have been harassed by the casino magnate to the Massachusetts Gaming Commission, as part of the investigation licensing the company for its Boston Harbor casino. As general counsel, this settlement would have fallen under Sinatra’s oversight.
Sinatra has denied that she knew anything about a rape allegation against Wynn, as alleged by his former wife, Elaine Wynn.
Six board members have either left the board or announced their intentions to leave, while three new members were appointed, all women. The company has changed the name of its Boston Harbor casino from Wynn to Encore to further distance itself from the founder.
In a note to investors, Jefferies analyst David Katz calls the move a positive for the company.
“We view the announcement of Wynn general counsel as anticipated and reflective of the pressure the company’s management team is facing in the near term from regulators and shareholders,” Katz wrote. “We remain confident in the long-term fundamentals of the business and the underlying asset value. We view the current share price as opportunistic, despite changes that have or could occur in the management team as a result of these pressures.”
No replacement has been named for Sinatra.
