Executive VP of Wynn Resorts Steps Down
Wynn Resorts has been plagued by negative publicity over the past several months because of allegations of sexual misconduct against its founder and former chief executive officer, Steve Wynn. Several key figures involved in the management of the company have already stepped down, and Executive Vice President Kim Sinatra is the latest casualty.
Resignation without Reason
Sinatra had worked at Wynn Resorts for about 14 years. She was appointed general counsel for the company in 2006 and quickly rose up the ranks to the position of executive vice president. She was also considered the most ideal candidate to take over for Wynn following his resignation. But, that appears to be out of the question now.
The company has remained silent about the reasons Sinatra has decided to step down. However, those close to the investigations claim that she was complicit in the sexual harassment allegations. She allegedly knew about a $7.5 million payout that Wynn is reported to have made to one of the casino’s employees to keep quiet about sexual harassment.
The Board of Directors has already tapped Ellen Whitmore, a gambling and compliance attorney based in Las Vegas, to replace Sinatra. The board has announced that it is working to finalize the details of the company’s separation with Sinatra and it promises to make them public as soon as they are done. However, more changes, resignations, reshuffles, and appointments are expected to take place in the near future as the accusations against Wynn continue playing out in the media.
Months of Turmoil
Wynn has been accused of taking advantage of his employees by sexually exploiting them. This has reportedly been going on for years, and Wynn has reportedly been keeping it under wraps by paying off his victims. However, it did not take long for Wynn to step down as the company’s chief executive officer when the allegations came out. He cited negative publicity both for him and his company as the reasons for his departure.
Following Wynn’s resignation, Elaine Wynn, his ex-wife, took control of the company in a bid to mitigate the damage that was done. The board also appointed Matt Maddox as CEO in February.
An Uncertain Future for Wynn Resorts
Wynn Resorts ranks among the best companies in the gambling industry not only in Las Vegas but also internationally. Wynn is credited with playing a crucial role in developing Las Vegas into a top-ranking tourist destination. He is responsible for building some of the most iconic resorts and casinos in Las Vegas, including the Mirage, Treasure Island, Wynn Las Vegas, and the Bellagio. He has also built several resorts and casinos abroad, including the Wynn Macau in China and the Wynn Palace on the Cotai Strip.
Wynn Resorts has been under investigation not only in the United States but also internationally because of the recent spate of accusations against its founder. These investigations have already taken a negative toll on the performance of the company, especially when it comes to its stocks prices. Wynn Resorts’ stock prices stood at over $200 in May but have since fallen to $154. There is also concern that some of the company’s establishments may be denied licenses when the time comes for renewals. This is definitely affecting its profitability.
However, Wynn has expressed confidence in his company, noting that it ranks among the best in the industry not only in terms of its performance but also when it comes to the ideals it stands for. However, only time will tell what course the company will take following Sinatra’s resignation.
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As an avid video poker player and lover of real money online blackjack, Thomas is the founder and guiding voice behind the Rick’s Picks community. A project manager at a London based Fortune 500 tech company, Thomas is an online casino enthusiast who founded TCP as a hobby to help other players avoid the headaches and hassles he has encountered when trying to find the best real money online casinos.
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