Las Vegas businessman Steve Wynn will not receive any severance or compensation after his resignation from casino operator Wynn Resorts amid multiple allegations of sexual misconduct, according to a termination agreement filed to the US Securities and Exchange Commission and released on Friday.
The agreement further stated that Mr. Wynn will have to move out of his private residence at one of Wynn Resorts’ Las Vegas Strip hotels by June 1. He will have to keep paying rent until the end of his lease. The administrative support the businessman receives is set to end on May 31, and he will keep his health insurance coverage only through December 31.
Mr. Wynn will be able to keep his personal stake in the company he had himself found years ago. The casino mogul has said in a separate filing to the SEC that he has no plans to sell for now. However, if he decides to sell his shares in the company, the businessman and Wynn Resorts will sign a separation of rights agreement. Thus, Mr.
Wynn will not be able to sell more than a third of his shares within a single quarter. The businessman currently owns 12% in the Las Vegas casino giant and is its largest shareholder.
According to reports from different media outlets, Mr. Wynn could have received up to $330 million in severance payments. Experts commented that the termination agreement was rather restrictive, but explained the reasoning behind it with the fact that Wynn Resorts probably expects lawsuits against its former CEO and Chairman to keep piling as the case develops. Mr.
Wynn resigned from his posts at the casino company earlier this month.
Sexual Misconduct Allegations
Last month, the Wall Street Journal published a report on multiple allegations of sexual harassment and misconduct against Mr. Wynn from former and current female employees at his company. The article detailed an incident of the businessman forcing a former manicurist at one of his properties into having sex with him.
Mr. Wynn reportedly paid a $7.5-million settlement to prevent any media coverage of the incident.
The casino mogul has repeatedly denied the allegations and has pointed out that the news report might have been instigated by his former spouse Elaine Wynn. Mr. Wynn and his ex-wife have been locked in a prolonged legal battle, with Mrs. Wynn seeking to regain control of her stake in Wynn Resorts. Mr.
Wynn surrendered control over her shares in the company earlier this month.
The Wall Street Journal’s report caught the attention of the gambling regulators of Nevada and Macau, where Wynn Resorts currently operates casino resorts. The regulatory bodies opened investigations into the allegations against Mr. Wynn as well as into whether Wynn Resorts’ board had any previous knowledge of these.
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The Massachusetts Gaming Commission also launched a probe into the allegations. Wynn Resorts is currently building a $2.4-billion resort near Boston. Gaming commissioners have said that they would look into the appropriateness of Wynn Resorts’ participation in the state’s casino industry.
Here it is important to note that under Massachusetts casino regulations, any individual with a stake in a casino company larger than 5% must be considered suitable by the gaming regulator. It is still yet to be seen how the Commission would act given Mr. Wynn’s 12% stake in the company.