NEW YORK • US casino mogul Steve Wynn has resigned as chief executive of his company Wynn Resorts, following claims that he subjected women who worked for him to unwanted advances, becoming one of the most prominent business leaders to quit over sexual misconduct allegations in recent months.
The company said it was appointing Mr Matt Maddox, its president since 2013, as chief executive, effective immediately. Mr Maddox, who has been with Wynn Resorts since it was founded in 2002, is seen as a firm hand and is widely viewed as a favoured protege of Mr Wynn.
As the "MeToo" movement galvanises women to publicly air their experiences, Mr Wynn's decision represents a rare resignation by a head of a major listed company in the wake of such accusations.
It has also led to speculation that Wynn Resorts could become a takeover target, and raises the question of how much influence Mr Wynn, its biggest shareholder, will continue to wield over the firm and how much scrutiny from the authorities that will invite.
Mr Wynn, 76, has denied the accusations published by The Wall Street Journal as "preposterous" and said they were instigated by his former wife, an accusation that a representative for Ms Elaine Wynn has denied.
He also resigned as finance chairman of the United States Republican Party's fund-raising arm, the Republican National Committee, last month.
"In the last couple of weeks, I have found myself the focus of an avalanche of negative publicity... I have reached the conclusion I cannot continue to be effective in my current roles," he said in a statement.
Sparking a wave of harassment and abuse allegations against dozens of powerful men, the MeToo movement has had its biggest impact so far in the media industry and politics.
Mr Wynn, who according to Forbes has a net worth of US$3.3 billion (S$4.3 billion), started in Las Vegas casinos in the 1960s, creating some of Las Vegas' most iconic landmarks - the Mirage, Bellagio and Treasure Island. But he was forced to sell his multibillion-dollar operation Mirage Resorts to tycoon Kirk Kerkorian in a hostile takeover in 2000. Mr Kerkorian then created MGM Mirage, and Mr Wynn went on to create Wynn Resorts with his former wife in 2002.
Shares in Wynn Resorts, which owns the Wynn, Encore Las Vegas casinos as well as its Wynn Macau unit, have tumbled nearly 20 per cent since the Journal report on Jan 26. The company is worth around US$17 billion by market capitalisation.
REUTERS
