Wynn Resorts - can Steve Wynn remain CEO?
As Wynn Resorts [WYNN] faces ever increasing headwinds from allegations of impropriety by its CEO, Steve Wynn, his ability to continue to lead the firm has become a pressing question. With a drop in the price of its stock from over $200 per share on January 25th to the current $170 or so, investors are also starting to feel the pain of these allegations.
Because of the highly regulated nature of gambling, even an allegation of moral turpitude by an officer of a firm like Wynn poses a threat to the firm’s ability to do business. According to the Boston Globe, Massachusetts Casino regulators have already announced an investigation and could revoke the firms gaming license on it’s yet to be completed Boston casino. According to the Los Vegas Review-Journal, the Nevada Gaming Control Board has also opened an investigation into the allegations against Mr. Wynn.
We also note that Wynn Resorts currently has one female member on its Board of Directors, Patricia Mulroy, despite a 2015 proxy contest in which Mr. Wynn’s former wife, Elaine P. Wynn, fought to remain on the Board. Egan-Jones supported the dissident, Ms. Wynn, in that contest.