The outgoing chief financial officer for Las Vegas Sands Corp. cashed out almost $7.7 million in company stock the day after it was announced that he was leaving the casino operator.
According to an insider stock trade posted on Yahoo, Las Vegas Sands CFO Kenneth Kay sold 147,000 shares of company stock June 26 at $52.28 per share on the New York Stock Exchange.
On the same day, Kay exercised options for the 147,000 shares at between $3.18 and $22.97 per share. According to Yahoo, Kay had ownership of fewer than 1,000 shares of Las Vegas Sands stock after the sale.
A day earlier, Las Vegas Sands announced in a filing with the U.S. Securities and Exchange Commission that Kay, the company’s CFO since 2008, would leave his position July 31. Kay earned a base salary of almost $1.2 million as of Dec. 31, a different SEC filing by the company shows.
Las Vegas Sands said Kay entered “a six-month consultancy agreement” with the company to provide transitional services as needed. Kay also received a one-year salary, a pro-rated bonus for 2013 and continued health care benefits for up to one year or until he is newly employed.
“The company will undertake a search for Mr. Kay’s permanent replacement,” Las Vegas Sands said.
A source familiar with the situation said Kay was “let go” by Las Vegas Sands but not for any cause.
Kay’s departure comes as Las Vegas Sands faces investigations by the SEC and U.S. Department of Justice over potential violations of the Foreign Corrupt Practices Act.
The allegations were raised in a wrongful termination lawsuit filed by the former chief executive of the company’s Macau casino operations. The case is pending in Clark County District Court.
In April, Las Vegas Sands severed ties with PricewaterhouseCoopers LLC, its outside auditor since 2004, and appointed Deloitte & Touche LLP as a replacement.
In an April SEC filing, Las Vegas Sands said the company had not had any “reportable disagreements” with the auditing firm going back to 2011.
A Las Vegas Sands spokesman said Kay’s departure “had absolutely nothing to do” with the investigations or the change in auditors.
Contact reporter Howard Stutz at firstname.lastname@example.org or 702-477-3871. Follow @howardstutz on Twitter.