Wynn Says Bye to Villa, Health Benefits as Company Cuts Ties
Wynn Says Bye to Villa, Health Benefits as Company Cuts Ties
(Bloomberg) -- Billionaire Steve Wynn, who resigned as head of Wynn Resorts Ltd. over allegations that he pressured employees for sex, won’t receive any golden parachute from the casino giant.
The 76-year-old will have to leave the villa he leases from the Las Vegas-based resort operator by June 1, according to a regulatory filing Friday. His company-paid administrative assistance will stop May 31 and his health benefits end Dec. 31.
The casino mogul resigned last week after a series of sexual harassment allegations. Wynn, who has denied wrongdoing, cited “an avalanche of negative publicity” that left him unable to do his job, according to a statement.
The filing shows Wynn Resorts is moving to cut ties to its founder, whose name remains on its properties and whose voice still welcomes callers seeking reservations. Wynn had long lived in a villa at the Wynn Las Vegas, often greeting guests and chatting with staff. Matt Maddox, a long-time Wynn lieutenant was appointed chief executive officer in his place.
“We found the language in the release to be straightforward and stern,” Deutsche Bank analyst Carlo Santarelli said in a research note Friday.
The company also said Friday it may have to pay bondholders $10 million to amend change-of-control provisions in its 4.25 percent notes due in 2023.
Wynn Resorts rose 1.4 percent to $166.24 at 12:43 p.m. in New York. The stock is down about 18 percent from its recent high of $203.63 on Jan. 25, the day before a Wall Street Journal article detailed the allegations against Wynn.
Executives of public companies are typically entitled to severance and accelerated vesting of equity awards if they’re dismissed before their contracts expire, or if they leave for reasons including a pay cut or a reduction in responsibilities.
Wynn’s employment agreement entitled him to as much as $330 million if he was fired without cause, a regulatory filing shows. But if the termination was based on a failure to follow policy or comply with the “lawful directions of the company,” the board had the right to give him nothing.
To contact the reporter on this story: Anders Melin in New York at amelin3@bloomberg.net.
To contact the editors responsible for this story: Alicia Ritcey at aritcey@bloomberg.net, Rob Golum, Jessica Brice
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