Wynn Resorts is to receive $41m – including $20m from Steve Wynn – as settlement for a derivative lawsuit filed on behalf of the company.
The total includes $20m from founder and former CEO Steve Wynn and $21m from insurance carriers, less certain fees and costs.
The settlement also credits Wynn Resorts with $49m as a result of corporate governance enhancements undertaken after the filing of the lawsuit, and further enhancements agreed to by the company pursuant to the settlement.
Neither the company nor its current or former directors and officers were determined to have committed any wrongdoing in connection with the settlement.
Additionally, Wynn Resorts has agreed to amend its bylaws to require the separation of the role of the chairman and CEO – positions that Steve Wynn had held concurrently – and stipulate a majority vote of the shareholders for the election or re-election of directors, except in the case of a proxy fight.
The company will also adopt 10b5-1 trading plans for its directors and executives holding $15m in stock and strengthen its current commitment to diversity by publicly stating its goal of 50 per cent diversity on its board.