Massachusetts regulators dug into the nearly-$10 million separation package for Wynn Resorts' former chief lawyer and whether that severance package might have influenced her answers to Gaming Commission investigators during the first period of extended questioning in the Gaming Commission's multi-day hearing on the company's suitability.
Kim Sinatra, who served as general counsel to Wynn Resorts since 2004 and did not disclose to Massachusetts regulators in 2013-14 that she was aware of a 2005 settlement between Steve Wynn and a subordinate, departed the company in August with what Gaming Commission Chairwoman Cathy Judd-Stein said was a "nearly $10 million payout."
Betsy Atkins, a Wynn Resorts board member who leads the compensation committee, told Judd-Stein the committee conferred with numerous lawyers, reviewed Sinatra's contract and ultimately recommended to the board that "we take away $1 million of what that contract provided" and insist upon one-year non-compete, non-solicitation and non-disparagement clauses.
Matt Maddox, who replaced Steve Wynn as CEO last year, said the decision of whether to enter a separation agreement with Sinatra or to fire her for cause -- Sinatra acknowledged to investigators that she knew about and did not inform others of the settlement involving Steve Wynn -- was "a heavily debated question by our newly independent compensation committee."
Maddox said he "did not think terminating for cause would have been the right action" and explained that lawyers advised the company that it would be more beneficial to Wynn Resorts to make the separation mutual.
Judd-Stein also pressed Maddox on the timing of the Sinatra separation agreement. The agreement which would provide Sinatra with about $10 million was made official with Maddox's signature on Aug. 3, 2018, the same day that Sinatra gave a deposition to the commission's investigators.
