The resignation of Steve Wynn resulted in the surge of the Wynn Resorts share price. Despite Wynn’s efforts to restore the company to the state, it was in prior to the sexual harassment allegations, the probe into the company’s eligibility in Massachusetts is still continuing. The company’s share price bounced back to $177.32 in the middle of the week, which means that Wynn Resorts share price went up by 8.6%. It is evident that shareholders have regained confidence in the company and acted accordingly by investing in the company.
Wynn decided to hand in his resignation when a plethora of accusations were made against him of sexual harassment by his female employee staff at Wynn Resort. An article was published in the Wall Street Journal accusing Wynn of sexually harassing his female staff for decades. Just over a week after the article was published, Wynn decided it was best for his businesses for him to walk away. His decision proved to be propitious for the businesses as investors regained faith in the company.
The Future for Wynn Resorts
Despite the shares improving significantly since Wynn’s resignation, the company has a challenging journey ahead of itself to get the shares back up to $200, the price it was at before the scandal broke out. The sexual harassment accusations are not the only thing the company has to deal with. Nevada, Massachusetts, and Macau have enacted regulatory probes into the suitability of Wynn’s businesses in the locations, especially in Massachusetts, where Wynn is in the process of building another business.
Ed Bedrosian, executive director of Massachusetts Gaming Commission, stated that even though investigators are conducting their own investigation amid Wynn’s resignation, the MGC probe will continue. The MGC hosted a hearing regarding the accusation against Wynn. Its main focus laid on the $7.5 settlement that Wynn made to one of his female staff back in 2005. MGC investigators were under the impression that Wynn’s representatives intentionally held information from them when they submitted the application for a suitability in the state.
On Wednesday, Fortune magazine published an article that stated Wynn may be eligible to receive $330 million for his contribution to the company and commendable efforts to voluntarily leave the company when it was required. Wynn’s employment contract ends in 2022, and he may now receive three times his normal annual package including a big bonus for his brave deed.