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Wynn General Counsel to resign July 15

By Brendan Clogston

 

Kim Sinatra, general counsel of Wynn Resorts,

Wynn Resorts Executive Vice President and General Counsel Kim Sinatra, widely seen as the company’s No. 2 employee after CEO Matt Maddox, will step down Sunday, according to a filing with the U.S. Securities and Exchange Commission.

Wynn Resorts has not issued a comment on Sinatra’s departure, and no official reason has been given as of press time. Sinatra’s position had long been seen as vulnerable; however, as the company attempts to distance its operations from disgraced former CEO and founder Steve Wynn, and the Massachusetts Gaming Commission continues its investigation into who knew what and when.

This February, Wynn resigned after a report in The Wall Street Journal accusing him of a decades-long pattern of sexual misconduct. It was later discovered that in 2005, a $7.5 million settlement payment to a manicurist who alleged that he pressured her into having sex with him had been withheld from the Gaming Commission during its background check of Wynn and the company.

Sinatra was allegedly aware of that payment. Former board member and Wynn’s ex-wife alleged in legal filings that she told Sinatra about the incident in 2005. Sinatra has disputed this claim.

The Gaming Commission’s investigation into Wynn’s conduct and the company’s response to it, both before and after that conduct became public, is ongoing. The company has remained publicly confident that the Encore Boston Harbor project in Everett will open on schedule, and has pressed forward with construction on the $2.5 billion development. The Gaming Commission does have the authority to strip the developer of its gaming license, and Wynn officials have been careful to satisfy the agency’s demands.

According to the filing, the terms of Sinatra’s departure have not yet been finalized. She has held her post with the company since 2004, becoming massively influential within the company and serving as a major force in the developer’s initial attempts to bring the casino to Everett. In 2017, her total compensation package for the year was $13.3 million.

Sinatra is hardly the first Wynn official to leave since February. Six of the 10 directors on the company’s board have announced their resignations since the beginning of the year.

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