GGRAsia – Wynn Resorts pays US$1.8-mln severance to Kim Sinatra

Wynn Resorts pays US$1.8-mln severance to Kim Sinatra

Aug 09, 2018 Newsdesk Latest News, Top of the deck, World

U.S.-based casino resort operator Wynn Resorts Ltd said in a regulatory filing on Wednesday that it has agreed to give severance pay of just over US$1.81 million to Kim Sinatra, who ceased to serve as the company’s executive vice president, general counsel and secretary on July 15.

“Such payment reflects all unpaid base salary through December 31, 2018, projected 2018 bonus compensation, and unpaid but accrued vacation pay,” the firm said in a 10Q filing, detailing the second quarter results.

According to Wynn Resorts’ filing, Ms Sinatra “will remain available” for up to 25 hours per month to the company’s chief executive “and provide advice, guidance and cooperation with respect to litigation and general corporate matters” until December 31, 2018.

Ms Sinatra also agreed to “cooperate with the company and regulatory authorities regarding any outstanding matters” in which she was involved, said the casino operator.

Under the agreement, Ms Sinatra granted a waiver and release of claims to Wynn Resorts and agreed to certain non-competition and confidentiality provisions, according to Wednesday’s filing.

Ms Sinatra had joined Wynn Resorts in 2004, assuming the role of general counsel and corporate secretary in 2006.

Wynn Resorts is the parent company of Macau casino operator Wynn Macau Ltd. Ms Sinatra was also a non-executive board member of the Macau unit.

Ms Sinatra’s severance agreement was attached to Wynn Resorts’ filing, as well as the employment agreement with Ellen Whittemore, the company’s new executive vice president and general counsel.

Ms Whittemore will receive a base salary of US$600,000 a year, with benefits and a possible bonus of up to 100 percent of her salary, according to the filing. “Employer retains the discretion to adopt, amend or terminate any bonus plan at any time,” said the firm.

Wynn Resorts has announced a number of changes to its leadership this year, after founder, Steve Wynn, resigned in February over allegations of sexual harassment. The businessman has denied the claims.

The company announced on Monday that Phil Satre would be joining the firm’s board as vice chairman, and would become chairman before the end of the year. Daniel Boone Wayson, current chairman of the board, is expected to step down “no later than December 31, 2018”.

On Tuesday, Wynn Resorts said it had expanded its board of directors to 11 members with the appointment of CEO Matt Maddox and independent director Richard Byrne.

Over the past six months, Wynn Resorts appointed six new directors to its board and announced the departure of five legacy directors. The casino company announced in April the appointment of three new directors for its board, all of them women.

In a separate filing on Tuesday, Wynn Resorts said that a special committee investigating the sexual harassment claims against Mr Wynn had finished its work, presenting the final report to the firm’s board at a meeting on August 3. The news had been reported earlier by the Las Vegas Review-Journal.

“The special committee will provide the presentation to the company’s gaming regulators,” said the company. “In deference to the ongoing regulatory investigations, the board and the company will have no further public statement on the results until the regulatory investigations are completed,” it added.

Wynn Resorts said in January it had formed a special committee consisting solely of independent directors to investigate the claims against its former CEO. The committee was chaired by Patricia Mulroy, a member of the board’s corporate governance and compliance committees and a former member of the Nevada Gaming Commission.

The publication of the sexual misconduct allegations against Mr Wynn led the Nevada Gaming Control Board and the Massachusetts Gaming Commission respectively to open an investigation into Wynn Resorts. In the latter jurisdiction, the group is building a new venue at Boston Harbor.

Wynn Resorts said in its Tuesday filing that the gaming regulator in Macau, the Gaming Inspection and Coordination Bureau, was “monitoring and reviewing the situation”.