The relatable Phil Satre is known to write opinion pieces in Nevada newspapers.
Wynn Resorts named former Harrah’s Entertainment executive Phil Satre as its vice-chairman, in a move which is being characterized as a peace offering to Elaine Wynn. Elaine Wynn is Wynn Resorts’ largest shareholder, as well as the former wife of company founder and ex-CEO Steve Wynn.
In a related move, it was announced that D. Boone Wayson, a longtime top board member and close ally of Steve Wynn, would be leaving the board at the end of the year.
A regulatory filing showed that Elaine Wynn agreed not to propose new director additions. She also agreed not to seek to accelerate the appointment of Phil Satre.
Also, the filing shows that Elaine Wynn will be reimbursed for up to $5 millon in out-of-pocket expenses related to Wynn Resorts’s annual meetings in May 2018, as well as further negotiations.
John Hagenbuch Controversy
When a vote on a long-serving board member, John Hagenbuch, came up at those meetings in May, Elaine Wynn sent letters to shareholders calling on them to vote down the man’s reappointment. In the ensuing controversy, John Hagenbuch announced he would not stand for reappointment.
Around the same time, Elaine Wynn called on Massachusetts Gaming Commission members to scrutinize the board membership, whom she said were Steve Wynn enablers and therefore ill-fit to lead the company in its post-Steve Wynn era.
Wayson Praises Phil Satre
D. Boone Wayson praised the appointment of Phil Satre, while hinting at the months-long acrimony which had surrounded Wynn’s board of directors. Wayson said, “(Satre’s) appointment is the result of a collaborative effort … which I believe will serve as the beginning of a constructive and unified effort by all parties to move the company forward.”
In July, Elaine Wynn had called on the board to name an outsider as vice-chairman, but the board had rejected that call by its largest shareholder. Its reversal only weeks after is a sign the board sensed it needed a new direction, as it faces challenges from regulators in Nevada and Massachusetts. The Encore Boston Harbor, which opens in early 2019 in Everett, is a key turning point for the company’s future, but MGC panel members have questioned the company’s leadership.
Wynn Resorts Share Prices
Perhaps more pivotal has been a steady decline in Wynn’s share price since the mid-May company meetings. At the time, Wynn shares were trading between $195 and $200. Since then, shares have declined almost 25%, down to below $150 only this week. Upon news that Phil Satre would be vice-chairman, share prices rose 1.5% to $151.21.
Phil Satre has over 25 years in the business. Satre was the CEO of Harrah’s Entertainment, now named Caesars Entertainment, before the company was purchase in 2007 in a leveraged buyout by Apollo Capital and a consortium of other holding companies. Caesars Entertainment includes several top brands, including Caesars, Harrah’s, and Bally’s.
Elaine Wynn Agitates at Wynn Resorts
Elaine Wynn was Steve Wynn’s wife when he founded Wynn Resorts in 2002. The two divorced in 2011, but Elaine Wynn had a binding agreement which did not allow her to cash out her Wynn shares. After she was forced off the board in 2015, she filed suit against her former husband and the Wynn board of directors, calling for her to be allowed to liquidate her assets in the company.
That never happened, despite Elaine Wynn’s contention that she was a whistleblower who had information to tell about misconduct at the company. While invoking whistleblower status, Elaine Wynn said the board members had covered up wrongdoing over the years.
In retrospect, Elaine Wynn was referring to a $7.5 million settlement of a 2005 lawsuit with a woman Steve Wynn had had an affair. The media speculated the lawsuit involved a child born out of wedlock. Despite similar lawsuits by former board members Elaine Wynn and Kazuo Okada, Steve Wynn appeared to be at the height of his powers.
Steve Wynn’s Rise and Fall
Steve Wynn, a man so charismatic that even Donald Trump said he might be too flamboyant, was the face of Wynn Resorts. He also was a regular contributor to Fox News and a supporter of Donald Trump’s 2016 bid for the US presidency. Once Trump won the election, Steve Wynn was appointed to Trump’s inauguration committee, as well as the Finance Chairman of the RNC.
As soon as he ascended to the top of Republican politics, it all came crashing down for Steve Wynn. In January 2018, the Wall Street Journal published a story after interviewing 150 current and former Wynn Resorts employees. The WSJ expose claimed dozens of salon workers at Wynn Resorts claimed their boss had sexually harassed them over the years.
In the era of the #MeToo Movement, Steve Wynn’s control of the Las Vegas casino group came undone. By early February, Steve Wynn had stepped down as CEO. By March, he had sold all of his shares in Wynn Resorts, while the company had made a deal with Kazuo Okada’s former gaming company, Universal Entertainment, to sell Okada’s shares.
Suddenly, Elaine Wynn was the company’s top shareholder. For his part, Steve Wynn claims that the accusations against him are a part of his bitter divorce. He attributed the accusations to Elaine Wynn herself. If so, it might be said that a settlement years ago would have served the company better.
Matt Maddox Added to Board
Since then, Wynn Resorts CEO Matt Maddox has struggled to contain the damage. In April 2018, Maddox brought three female members to the board — all three eminent figures in their fields. Now it seems that move was part of a general re-ordering of Wynn Resorts’ executive staff.
This week, Matt Maddox was added to the board. At the same time, former DeutscheBank executive Richard J. Byrne was added. Now Phil Satre has come aboard as vice-chairman. With 6 new members added in 4 months, it appears now that all sides are satisfied and the Wynn board can settle down for business.
