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Changing of the Guard at Wynn

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June 13, 2018 – Comments (0) | RELATED TICKERS: WYNN

Steve Wynn has sold his 12 million shares; 4.1 million on the open market @ $180 per share and 8 million shares to two current long-term institutional investors @ $175 per share.    This mostly clears the company from the scrutiny of gaming regulators as Steve no longer has any association with the company.

Ex-Mrs. Steve Wynn is holding 10 million shares, but has not shown any interest in returning to management of the company.    She was forced off of the board of directors in 2015 after raising questions about Steve's antics with a female employee, but now has regained her voting rights and is back with a vengeance.    She has been actively working to shake up the board of directors and redirecting the future of the company.    Wynn Resorts has had five incumbent board members resign since the start of the year.

The long-time or "legacy" members of the board of directors might be viewed as incompetent and/or "yes-men" to whatever vision Steve was pursuing.    When Steve resigned, the board promoted the company's president, Matt Maddox, to the CEO position.    Currently, Elaine Wynn will not talk with Matt, and her spokesperson says, "Elaine's not making a request of management. She's making requests of the board.    Everything is a board issue.    Matt's not on the board.    He has nothing to do with this."    Since Maddox has claimed that as president of the company he had no prior knowledge of sexual misconduct complaints against Steve Wynn, even though so many of the other employees of Wynn were aware of the misconduct, Maddox may eventually find himself in Elaine's crosshairs.

With three mega-resorts in operation and another under construction in Boston Harbor and recently renamed Encore instead of Wynn, the next question is whether the company has the competent leadership to continue move forward.    Steve had aggressive plans for the company to push into Japan and Indonesia.  

Possibilities seem to be to clean house and move forward as originally planned, pull back from some of the plans and perhaps even sell some assets, or possibly another gaming developer will make a take-over offer for the whole company.    For now, Elaine Wynn seems to be at the wheel and the company will follow her vision.

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