15 August 2018 at 15:29 BST

'Happily retired' general counsel walks away with $1.8m plus stock

The general counsel of Wynn Resorts Kim Sinatra kept quiet on ceo's sexual harassment settlement, until ex-wife blew the whistle.

Shutterstock

Ms Sinatra, who states her current status on LinkedIn as ‘happily retired,’ has walked away from her former employers with a $1.8 million cash settlement from the company plus millions of dollars worth of vested stock and options, according to an SEC quarterly financial filing.

The #MeToo effect

Ms Sinatra had knowledge for years about a $7.5 million settlement between former chief executive Steve Wynn and a casino employee, which was seen in a different light as a #MeToo mentality took a different view on sweeping such cases under the carpet. The company announced in July she intended to step down from her role. Wynn Resorts had not given a reason for her departure when it made a statement that she would serve in her position as of July 15 but stated the terms of Ms. Sinatra’s move hadn’t been finalized, as regulators continued to investigate the company’s handling of sexual harassment claims. Ms Sinatra has agreed to ‘cooperate with the company and regulatory authorities regarding any outstanding matters, in which she was involved, according to the SEC filing, and will be required to maintain contact with the company through the end of the year ‘regarding any outstanding matters that involved employee during the time and scope of her employment.’

Wife’s testimony

Ms Sinatra joined Wynn Resorts in 2004, becoming the company’s general counsel and corporate secretary in 2006. She attended board meetings as corporate secretary. She had considerable influence at the company and last year earned $13.3 million, earning more than some top gaming CEOs, according to compensation data compiler Equilar. Wynn Resorts has been purging senior ranks since allegations emerged in late January that Mr Wynn had sexually harassed employees for decades. He has denied the allegations, but stepped as ceo and chairman in February. Four other directors have since left the board. The allegations emerged while Mr Wynn was entangled in a bitter six-year legal fight with ex-wife Elaine Wynn, leading to Ms Wynn telling a court she informed Sinatra in 2009 that Mr Wynn had settled a sexual harassment lawsuit with a female employee in 2005, which Ms Sinatra said was not an issue of concern for the company. Ms Sinatra later issued a news release stating that Ms Wynn only ‘made an oblique reference to a settlement’ during their 2009 conversation.

 
   
 
 
 

Also read...

Number of individuals banned from financial services by the FCA rises

With 23 prohibition orders issued by the FCA last year, there is a 28% rise in FCA bans, and many more could follow.