Elaine Wynn
Wynn Resorts Ltd. elected former Harrah’s Chief Executive Officer Phil Satre to the position of vice chairman of the board after reaching a settlement with its largest shareholder, Elaine Wynn.
Satre will take over as chairman of the Las Vegas-based casino operator following the retirement later this year of D. Boone Wayson, Wynn Resorts said in a statement yesterday. Under the agreement with Elaine Wynn, who owns just under 9 percent of the stock, she won’t significantly increase her stake, nominate more directors, or join groups seeking a takeover until 2020. She’ll be reimbursed for as much as USD5 million in expenses she incurred to launch a proxy fight earlier this year and negotiate the agreement.
“I have long respected Phil as a leader in the gaming industry and am confident that his addition to the company’s leadership team, coupled with the plans laid out by management, will bring the company tremendous success in the years to come,” Elaine Wynn said in a statement.
The deal settles years of fighting between Elaine, the ex-wife of former Chief Executive Officer Steve Wynn, and the company since her ouster from the board in 2015. She unsuccessfully launched a proxy challenge to regain her seat that year and earlier this year got a director who had ties to her ex-husband knocked off the board. Steve Wynn resigned as CEO in February following allegations of sexual harassment and later sold all his shares. Wayson is his longtime friend.
“I am proud of our accomplishments and am pleased that someone as outstanding as Phil will succeed me in the role as chairman,” Wayson said in the statement.
Satre helped build Harrah’s, now known as Caesars Entertainment Corp., from a regional player into the largest owner of casinos in the U.S. He currently serves as chairman of retailer Nordstrom Inc. and slot machine maker International Game Technology Plc.
While Satre’s appointment and the settlement put to rest the tensions with the company’s largest shareholder, Wynn Resorts still faces investigations into the sexual harassment allegations that could challenge its gaming licenses in Nevada, Macau and Massachusetts. A report is expected from regulators in Boston by end of the summer.
Regret for not entering Macau market
Speaking to the Las Vegas Sun last week, Satre admitted some responsibility for the fact that Harrah’s missed out on Macau. “I was at the tail end of my career, and we didn’t pursue it aggressively,” he said.
The executive noted that the local gaming market “turned out to be a remarkable market and, of course, the largest in the world and an incredibly important source of earnings for the companies that participate there.”
Satre said that one of the motives that led Harrah’s to pass on Macau related to “serious concerns about the regulatory environment.” Before the opening of the market in 2001, Stanley Ho enjoyed a long monopoly on Macau. According to US regulators, the gaming mogul had ties to Chinese organized crime, which he let “operate and thrive” inside his casinos.
Ho has always denied these accusations. However, Satre said that at the time he feared that the company’s involvement in Macau could hinder its U.S. license.
“At the time, we had licenses not just in Nevada, but we had licenses throughout the United States, more than anybody else in the industry,” Satre said. “We had expanded our properties into more than 26 locations and to be honest with you, I was worried we would jeopardize those licenses because they would see us as having taken a reputational or regulatory risk that we didn’t need to take,” he added.
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