Steve Wynn stepped down as CEO of Wynn Resorts this week, a company that he founded, following continuing allegations of sexual misconduct. The allegations have been hurting Wynn Resorts share price, as well as its business. Wynn Resorts released a statement earlier in the week that confirmed that Steve Wynn had resigned.
Steve Wynn Denies Allegations, Resigns Anyway
The 76-year old founded Wynn Resorts 13 years ago. Steve Wynn is also someone who is credited with playing a major role in helping to develop the Las Vegas we all know today. However, with these allegations, it has become clear to him that he could no longer function as an effective CEO and chairman. Taking over the position of CEO at Wynn Resorts will be Matt Maddox, who was the firm’s president.
Steve Wynn is fighting the allegations against him and continues to deny them. The sexual misconduct allegations were made public towards the end of January by an article in the Wall Street Journal. The article featured detailed claims by female employees at Wynn Resorts, but there are also reports going back decades at Steve Wynn’s other casinos.
Wynn Resorts Stock Responds Positively to Resignation
The allegations against Steve Wynn come after numerous scandals in 2017, the most notable being Harvey Weinstein. After the report was published in the Wall Street Journal, the share prices for Wynn Resorts began to drop. In total, the share price dropped by 18%, from $200 to $163.22. This drop alone is believed to have cost Steve Wynn around $440 million. It became clear that sooner or later, he was going to have to step down from his company.
Many are now wondering if Wynn Resorts will be able to continue without its founder. Some believe the company will continue to prosper, while others believe that it will suffer without him and will no longer be the same Wynn Resorts. However, following his resignation, the stock price started to climb again. It climbed more than 8% in early trading the day after Steve Wynn’s resignation.