Because of a “termination agreement” between Steve Wynn and Wynn Resorts, Wynn is not allowed to receive any severance pay from the company.
A Rocky Exit
Steve Wynn resigned from his positions as chairman and chief executive officer of Wynn Resorts on Feb. 6. However, Wynn will not be receiving any severance pay. According to GGRAsia.com, a separation agreement, filed by Wynn Resorts to the Security and Exchange Commission (SEC), stated the embattled billionaire and casino mogul is not allowed to accept any severance package because of an agreement he signed with the company.
According to the termination agreement, Wynn also agreed that “for two years,” he would not “compete against” Wynn Resorts, and give the company “reasonable cooperation and assistance” with any “private litigation or arbitration.” It is expected there will be more accusations in the future. According to reports, the contract included a severance stipulation in the amount of $330 million.
A Ripple Effect
In addition to no severance pay, Wynn will also lose his health insurance coverage at the end of 2018. GGRAsia.com also reports Wynn will only have access to his administrative assistant until the end of May. The filing further stated, if Wynn chooses to sell any of his shares in the company, the company has agreed to a “registration rights agreement” with him. Wynn would be required to “reimburse the company” for any “reasonable expenses.” It also stated that Wynn would not be able to sell anything more than one-third of his shares in a quarter “after the date of the agreement.”
Also, according to GGRAsia.com, Wynn must vacate his villa at the Wynn Las Vegas resort by June 1. The filing stated Wynn “shall continue to pay rent at the fair market value,” which was initially set based on the opinion of an independent third party.
What’s Next for the Mogul
While Wynn has been the “talk of the town” over the past few months because of the sexual misconduct allegations, the tycoon continues to leave his mark within the casino industry. According to Travelweekly.com, Wynn is working on the “Paradise Park” project in Las Vegas, which will consist of a hotel with 1,500 rooms. The park will be where the Wynn Golf Club used to be. It will also consist of 26 acres, which will include a lake and beachfront. Another hotel is also in the works and will be located the former New Frontier hotel-casino once stood. Plans were revealed for the hotel, which will have a total of 3,000 guest rooms. Wynn Boston Harbor is also set to open in 2019. The casino-hotel will consist of more than 600 rooms.
While the future of the Wynn Resorts continues to move forward there is still the allegations against Wynn. According to Travelweekly.com, Felicia Hendrix, an analyst for Barclay’s, wrote in a note that the company is still in deep water despite Wynn resigning from his position. The notes further stated that “regulatory and board investigations continue” and there are still questions about the company’s future. Furthermore, some question about will happen next with Wynn have also been raised. Todd Uglow, a professor of marketing at the University of Nevada Las Vegas, said those who “invest in Wynn Resorts are investing in him just as much.” He added with Steve Wynn no longer being there, “there’s a real question about what’s going to happen.” Overall, Uglow feels Wynn Resorts can and will pull through despite the current situation surrounding the company, that it can “endure” as long as “they stay true to the brand and vision Steve Wynn had.”