Wynn Resorts Stock Price Spikes After CEO Steps Down Following Sexual Misconduct Allegations

Wynn Resorts website

In today’s environment, sexual harassment victims are no longer afraid to share their experiences no matter how powerful the abuser is.

The unhealthy culture that a massive number of workers in the restaurant industry have been subjected to has been exposed through countless stories, but sexual harassment is a wide-ranging issue that exists in multiple industries.

Last month, a media frenzy ignited after the billionaire mogul and CEO of Wynn Resorts Steve Wynn was accused of decades of sexual abuse.

Although Wynn has repeatedly denied these misconduct claims and have called them “preposterous”, Wynn has resigned from his chairman and CEO role at the Vegas-based corporation.

"It is with a collective heavy heart, that the board of directors of Wynn Resorts today accepted the resignation of our founder, CEO and friend Steve Wynn," said Boone Wayson, a director of the board and who will be the non-executive chairman in a press release. "Steve Wynn is an industry giant.  He is a philanthropist and a beloved leader and visionary.  He played the pivotal role in transforming Las Vegas into the entertainment destination it is today. He also assembled a world-class team of executives that will continue to meet the high standards of excellence that Steve Wynn created and the Wynn brand has come to represent."

The current President of Wynn Resorts Matt Maddox will be the new CEO.

A few weeks ago, Wynn resigned from another position as the finance chairman at the Republican National Committee.

"In the last couple of weeks, I have found myself the focus of an avalanche of negative publicity.  As I have reflected upon the environment this has created — one in which a rush to judgment takes precedence over everything else, including the facts — I have reached the conclusion I cannot continue to be effective in my current roles.  Therefore, effective immediately, I have decided to step down as CEO and Chairman of the Board of Wynn Resorts, a company I founded and that I love,” said Wynn in a press release.

On Wednesday morning, shares of Wynn Resorts spike by 6.3% following the resignation announcement. Once the accusations hit the media at the end of January, shares drop almost 20 percent.

The Wynn Resorts board is being sued by shareholders for not investigating the founder and chief executive. The shareholders claim that the board was aware of these accusations, but ignored them.

Read more about Wynn’s resignation at “Business Insider.”

Want tips on how to address sexual harassment and foster a positive culture your employees feel safe in?

Listen to this podcast where Foodable interviews Human Resources Guru Carrie Luxem with advice on how to manage these types of claims in your business and, better yet, how to stop them from happening in the first place.