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Last Friday Wynn Resorts shareholders backed the removal of Elaine P. Wynn, co-founder and former wife of Chief Executive Steve A Wynn from the company’s board of directors. The conformation announced at the Wynn Resorts annual meeting of stockholders last Friday, will likely end Elaine Wynn’s ongoing proxy battle with Wynn Resorts’ governance.
Last March Wynn Resorts corporate governance had elected to eliminate Elaine Wynn’s seat on the board, and re-elect John Hangenbuch and Edward Virtue as Elaine Wynn’s replacements.
Governance had stated that the action was deemed necessary as Elaine Wynn recent legal actions against her former husband Steve A Wynn had placed the company at risk. Elaine Wynn countered the arguments made against her by placing herself for re-election at the stockholders meeting.
Elaine Wynn who divorced her husband in 2010, had pursued for legal release from shareholder agreements established in the 2010 divorce which required her former husband to agree to her selling more than $10 million in company stock. In the shareholder suit, filed in 2012, Elaine Wynn sought the right to liquidate as much of her assets as she wanted.
US business news sources stated that the legal actions taken by Elaine Wynn had caused concerns amongst institutional investors who own the majority of company. At the stockholders meeting the investors would likely back Wynn Resorts’ governance.
Elaine Wynn the company’s third largest shareholder, stated her case for re-election to the board asserting that she had the company’s best interests in mind as a co-founder and on highlighted further board diversity issues regarding Wynn Resorts
Following the conformation of her defeat, Elaine Wynn representatives published the following statement on her behalf
“While I am certainly disappointed by the result of today’s vote, I am hopeful that I have once again served as an agent for change and improvement for this company, which I love so deeply.” She added: “It remains to be seen if the directors of this company will deliver on the commitments they have made to greater independence, diversity and oversight of management. I, however, as the third-largest stockholder, remain committed to holding all accountable”.
Wynn Resorts issued a counter-statement thanking Ms Wynn for her contribution to the company, and also noting that her concerns regarding board strategy and diversity had been taken on-board. Stephen A Wynn has not made any comment on the boards actions.
