In the continuing saga of Wynn versus Wynn, the latest of many accusations involves a bid for a land deal several years ago that included Elaine Wynn’s nephew. The parcel of land where the New Frontier once stood was in fact acquired by a group that includes Wynn’s nephew, Andrew Pascal. Elaine Wynn was let go from the board of Wynn Resorts, and has been fighting tooth and nail to convince stockholders to vote for her in an upcoming meeting.
She said that on two separate occasions she was unaware of the land purchase, and the board is looking to cut her down over reasons “made up out of the whole cloth.” In a letter, she wrote, “This allegation is just another example of the reckless lengths to which the board is willing to go to exclude me as a director.”
Elaine Wynn’s perhaps biggest argument on her behalf is that her removal ends diversity on the company’s board, where she served as the only female, but more importantly, the only director who would go toe to toe with her ex-husband on matters regarding the business. She claims that he is the only person who knows more about the company than her.
This drama couldn’t come at a worse time, as Wynn Resorts’ stock is down more than 40 percent in the past year. In regards to stock, a shareholder agreement during the couple’s 2010 divorce prohibits her from selling more than $10 million of her stock per year without Steve Wynn’s consent. She claims to have no interest in selling enough stock to bring about a change in control. Rather, she wants more money on hand to contribute towards one of her philanthropic efforts.
Andrew Pascal, a former executive at Wynn Resorts, was once considered to be the heir to the company. Currently, he is teamed up with Australian billionaire James Packer who is looking to build a casino-resort across the street from the Wynn hotel.
