A 31-page report on Wynn Resorts that was supposed to guide shareholders and investors on how to choose between Elaine Wynn, Steve’s Ex who wants to stay in, and the Wynn Resorts board who wants her out—turned out to be a condemnation of all the many different kinds of Wynns in Wynn Resorts, or, in the original language: a “manifest failures of governance, ” the NY Times reported.
Institutional Shareholder Services, which issued the underwhelmed report, attacked the casino’s compensation structure, Steve Wynn’s “excessive aircraft use, ” and the board’s frustrating lack of transparency.
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“There appears to be no daylight between Elaine Wynn and the rest of the board on tolerating weak governance practices, poor pay practices, or an overall corporate governance profile that ranks among the worst, not the best, of U.S. companies, ” the report said.
Moreover, the report advised shareholders not to vote for any of the nominees for the board, and this way “send a strong signal to the remaining directors about the board’s continuing acceptance of poor pay practices, as outlined extensively in our analysis of the executive compensation plan.”
The report blames the board for “the inordinately weak succession planning process” which has kept Steve Wynn, 73, in control with no clear idea of how he would ever be replaced.
But the same report had nothing nice to say about contender and ex-wife Elaine:
“There is nothing to indicate that, as a director, [Elaine Wynn] acted any more accountably to shareholders than any other director with regard to its numerous governance challenges, ” it stated.
As to her argument that by keeping her on, the board would preserve its diversity, seeing as she’s the only one on board who isn’t an old white guy, the report asserted that she “has not, apparently, done anything to drive additional diversity” in her 13 years as a director.
The only response from Wynn Resorts to the broad condemnation of its board, was a press release saying how pleased they were the report did not recommend Elaine Wynn stay on.
And Steve Wynn’s ex said in a statement s that “the stockholders of Wynn Resorts deserve better than the choices presented to them by the company this proxy season, ” which is why everybody should vote for her.
Yes, folks, give your money to these people.
The shareholders will meet on April 24 in Las Vegas. Until then, a happy excessive aircraft use to everyone.
