Lawsuit against Wynn Resorts director couldn’t come at worse time for company
The timing couldn’t be worse for Steve Wynn.
The Wynn Resorts Chairman and CEO on Wednesday announced a lofty, 1,000-room, $1.5 billion expansion plan for his local resort-casino. It would feature a 38-acre lake, so at least we know the drought is over.
Wynn is also embroiled in a nasty battle with ex-wife Elaine Wynn over control of her nearly 10 percent of the company. Thanks to a court filing, the focus this week is on the company’s current board of directors. That impressive list includes former Occidental Petroleum CEO Ray Irani.
Irani and wife Ghada on Tuesday were sued in Los Angeles Superior Court by three women from the Philippines who claim they were trafficked into the United States and overworked and underpaid as domestic help at the couple’s eight-bedroom, 14-bathroom home. The story was first reported in the Los Angeles Times.
Paid a salary of $1,200 per month, the lawsuit alleges, the women were forced to work up to 16 hours per day at the 17,480-square-foot home. The Iranis have denounced the allegations and called their accusers untrustworthy “liars.”
Meanwhile, Steve Wynn battles allegations by his ex-wife of “using a public company to fund his lavish lifestyle and personal politics” and displaying “reckless, risk-taking behavior” that has placed the corporation in jeopardy. Steve Wynn has vigorously denied the claims and called his ex-wife vindictive — and worse.
Ray Irani could teach Steve Wynn a seminar in allegations of corporate excess. As head of Occidental Petroleum for more than 20 years before his 2013 ouster, Irani was criticized for his mile-high compensation. He received $460 million in 2006 alone, according to published reports. He also built Occidental into a highly profitable company with an international reach.
Under the headline “Occidental CEO Ray Irani is the poster child for extravagant pay,” in 2010 Times columnist Michael Hiltzik blasted the oil and gas man’s compensation, which totaled more than $850 million in the first decade of the century. Irani’s pay, Hiltzik noted, averaged “three times that of comparable companies in the oil and gas industry” and the pay practices placed Occidental “in the cross hairs of activist investors, in part because the incentive thresholds that turbocharge Irani’s payouts have been set so low.”
Irani was pushed out after concerns were raised by at least two major institutional investors in the petroleum company.
Of course, it’s always possible Irani’s compensation history and current civil challenges won’t splash on Steve Wynn, make some people wonder whether Irani’s presence in the company sends the right message, or raise concerns from other stockholders. But don’t count on it.
Irani’s corporate history and hired help lawsuit are made to order for Elaine Wynn as she fights to gain control of her share of Wynn Resorts.
HATS OFF: For as long as most folks in the press can remember, Carole Vilardo has been the lady in the stylish hat and an unflagging source of reliable information on revenue issues from the perspective of the Nevada Taxpayers Association. Vilardo is retiring from the organization after 30 years.
That calls for a celebration in her honor. In fact, one is scheduled for Thursday, April 21, at the Gold Coast.
ON THE BOULEVARD: Nevada Stupak led a ceremony unveiling a street next to the Stratosphere that now bears the name of his late father, casino man Bob Stupak. … “Little Jimmy” Miltenberger, one tough brothel boss and knock-around guy, died Thursday at age 92. The cause was lung cancer. … Project Neon, the $1.5 billion reconstruction of downtown’s Spaghetti Bowl interchange and part of Interstate 15, broke ground Thursday with a scheduled completion of summer 2019.
John L. Smith’s column appears Sunday, Tuesday, Wednesday, Friday and Saturday. Contact him at 702-383-0295 or jsmith@reviewjournal.com. On Twitter: @jlnevadasmith
