In her latest attempt to ‘freshen up’ the Wynn Resorts board, co-founder and major shareholder Elaine Wynn is seeking support from shareholders to stop the re-election of one of its long-standing directors, John J. Hagenbuch.
“I am deeply concerned by what I view as the lack of independence and responsible oversight demonstrated by the current board of directors,” said Wynn in a letter addressed to Wynn Resort shareholders on Monday.
“We need a new era at Wynn Resorts. Although the board recently unilaterally appointed three new directors and indicated its intention to add more new directors in the coming months, I do not believe these steps go far enough toward changing ‘business as usual’ in Wynn’s boardroom. In particular, they do not address the number of longstanding legacy directors who will remain on the board,” she added.
Ms. Wynn named Mr. Hagenbuch as one of the legacy directors who still wield significant influence in the company.
“Mr. Hagenbuch has served on the board since 2012. I believe it is time for Mr. Hagenbuch’s departure from the board, so that new board members can seek change, free of holdovers from the past. My opposition to Mr. Hagenbuch’s re-election serves as a referendum on ALL of the longstanding legacy directors, including those who are not up for re-election because the incumbent directors refuse to declassify the board.”
One of the key issues raised by Ms. Wynn is Mr. Hagenbuch’s involvement on the special committee responsible for overseeing the investigation into allegations of Mr. Wynn’s sexual harassment.
“However, given that Mr. Hagenbuch is a longtime close friend of Mr. Wynn’s, Mr. Hagenbuch’s service on the special committee is disconcerting. I find this obvious conflict deeply troubling,” said Wynn.
Ms. Wynn has asked shareholders to withhold their votes in respect to the re-election of John J. Hagenbuch at the company’s annual meeting in May.
Wynn operates two resorts in Macau and is seeking a license to operate in Japan. (AGB)