As a result of allegations of sexual harassment, casino billionaire Steve Wynn has resigned from the company that he founded.
Steve Wynn resigned from his position as CEO and chairman of Wynn Resorts, Limited on February 6, 2018 amid multiple allegations of sexual misconduct.
The duties of CEO have been handed to 42-year-old president Matthew Maddox, who has been with the company since 2002. Maddox has served in various positions for the company, including CFO, and held a range of management roles at Wynn Macau. He was known as Wynn’s right-hand man.
Steve Wynn’s Downfall
Steve Wynn news of possible sexual misconduct first emerged during 2016 legal proceedings. At this time, Steve Wynn’s ex-wife Elaine revealed that he had secretly paid a multi-million-dollar settlement to a female employee over a decade earlier.
On January 26, 2018, The Wall Street Journal reported that this settlement involved a company manicurist who had allegedly been victimized by Wynn, 76. This report also claimed that Wynn had pressured employees to have sex with him.
Wynn denied any wrongdoing but stepped down as the finance chair of the Republican National Committee. Regulators in Nevada, Massachusetts, and Macau began looking into the accusations.
One day before Wynn resigned from Wynn Resorts, the Las Vegas Review-Journal reported that there was a 1998 lawsuit filed by cocktail waitresses at Wynn’s previous company, Mirage Resorts, Incorporated. One former waitress alleged Wynn had coerced her into having sex with him to keep her job.
Although Wynn has given up his titles and responsibilities, he remains the most influential shareholder of Wynn Resorts. His resignation may not be enough to satisfy authorities in Macau, who can force him to give up his WYNN stock if he’s proven to be “not suitable” under the region’s gaming law.
Wynn Mixed up in Another Controversy
Wynn’s businesses cater to more affluent customers looking for luxury services. Back in 2016, Wynn was quoted as saying, “Rich people only like being around rich people. Nobody likes being around poor people, especially poor people.”
This was a poor choice of words from the billionaire since in many cases, the employees who work for him cannot even afford to stay at one of his resorts.
Wynn’s Net Worth
Wynn is a member of the exclusive billionaire’s club. Steve Wynn’s net worth is approximately $3.3 billion. The majority of his wealth is tied up in his 12% stake in Wynn Resorts.
In late January, when news emerged of Wynn’s alleged sexual misconduct, WYNN stock fell by more than 10% in one day. This translated into a decrease of approximately $250.0 million in net worth for Wynn.
The slide continued with shares falling an additional 8.5% from January 27 to February 6. Wynn has lost more than $400.0 million in net worth.
If the accusations are proven to be true, Wynn’s estimated net worth could take a further hit.
Steve and Elaine Wynn’s Partnership
Wynn has been married three times to two different women. His first marriage was to Elaine Farrell Pascal (now known as Elaine Wynn) in 1963. The two divorced in 1986 and then remarried in 1991. They have two daughters, Kevyn and Gillian.
Steve and Elaine were partners not only in marriage but also in business. In 2002, the two took Wynn Resorts public after being forced to sell Mirage Resorts to MGM Resorts International in a hostile takeover in 2000.
The Wynns’ second attempt at marriage ended in divorce in 2010. After a lengthy court battle, Wynn was forced to give $741.0 million worth of WYNN stock to his wife. This was one of the largest divorce settlements in U.S. history.
As a result of the settlement, Elaine Wynn, 75, is also a member of the billionaire club. Her estimated net worth is $2.5 billion.
A year after the divorce, Wynn married Andrea Hissom in a lavish ceremony at one of his resorts in Las Vegas.