Some are suggesting spite being the reason for the recent announcement of Elaine Wynn to lose her position from the board of directors from Wynn Resorts Ltd. After all, following a 2010 divorce from Chairman and CEO Steve Wynn, she sued him in 2012 over an updated stockholder agreement which removed Japanese billionaire Kazuo Okada. Following the removal, Steve Wynn redeemed Okada’s 20 percent stake at a 30 percent discount.
However, the company paints a different picture, where Wynn Resorts spokesman Michael Weaver said, “Mr. Wynn supported the candidacy of Elaine.”
She is far from going down without a fight, and has already planned her next move. A letter penned by her last month said she “intends to nominate herself for election as a Class I director” and will solicit votes from shareholders. The annual meeting for shareholders is April 24 in the Encore Theater.
As expected, Elaine Wynn called the decision “extremely disappointing” and said, “The decision excludes the last woman director from the board.” In their 2010 divorce, both Steve and Elaine received 11 million shares in the casino company. The 9.5 million shares she currently owns, contributes to her wealth at $2 billion, according to Forbes.
The former married couple co-founded Wynn Resorts in 2000, and she has been a board member since 2002. In a proxy statement, the company cited four main causes for her removal. There is a concern for her “potential conflicts of interest,” the lawsuit against Okada, the impact of the lawsuit, and her “lack of independence under NASDAQ listing standards.”
As if her removal wasn’t enough of a blow, the company has also parted ties with her brother, Michael Pascal, who was a longtime executive host for Steve Wynn’s properties. Weaver said, “We don’t comment about former employees.” Pascal had worked for the Wynns for more than 30 years.
On the other side of the coin, Steve Wynn managed to earn nearly 30 percent more in 2014 than he did in 2013, coming in at $25.3 million. He has recently taken a base pay cut, but will be paid more for his contract, which is much more performance-based.
