Wynn Macau CEO Matt Maddox Got New Contract
The CEO of Wynn Resorts Ltd. has had his current contract extended for another 3 years, guaranteeing him the job until the end of 2022. Matt Maddox will continue to retain his chief executive position after the board reached a unanimous agreement that he was the best man to lead them in pursuit of continued growth. In the backdrop of a tumultuous year for Macau’s biggest casino operator, this has come as a surprise to many outsiders. Wynn Resorts Ltd. has been rocked by allegations of sexual harassment, money laundering and a range of regulatory violations that saw the Nevada Gaming Commission impose a $20M fine on the company for failing to deal with the sexual assault allegations against its former CEO Steve Wynn.
Wynn Macau Ltd. which is the subsidiary company of Wynn Resorts Ltd. will have Maddox as its executive director overseeing the operation in Macau. Much of the controversy surrounding this appointment is rooted in the seeming fiscal failures of the China-based subsidiary company in Macau. The year-on-year profit at its Macau unit has been seriously flailing in the previous 24-months. Last year saw a drop of nearly 50% in expected net income, and the year before was also particularly worrying for investors. The weaker VIP gambling market has been attributed to the majority of the blame, but there are many corporate restructuring issues that the company has failed to address and are beginning to display the real economic impact on the health of the company.
The company has stood by Mr. Maddox, and backed him aggressively against a regulatory inquiry in which a $500,000 charge brought directly against him by the Nevada State Gambling Commission was paid by his employer. In order to repay the faith that has been placed in him by the Wynn hierarchy, Maddox will be doing all he can to revitalize the company’s business in the Macau region. According to the terms of the deal, Maddox is also provided with a performance-based restricted stock that will ensure his full attention is given to maximizing the value of the company in the territories it operates within.
Maddox and His Team Eyes Macau Expansion
Despite the tumultuous year for Wynn Resorts Ltd. and the unnerving start to his tenure as CEO, Matt Maddox has not been phased. In a testament to his skillful leadership, Matt and his team successfully opened Encore Boston Harbor and set out a very ambitious growth schedule in Macau to reinvigorate the region’s casino industry.
After providing a valuable pipeline for innovation and growth in Macau under the Wynn Macau subsidiary company, Matt Maddox has set his sights on launching a new range of expansion plans for the Wynn Palace in Macau. After successfully navigating the company through a period of particularly tough economic circumstances, Maddox and his team have capital available to attack the most rapidly evolving market in the world, Macau.
But it won’t be easy. Many investors now plow money into the region and competition is fierce. With macroeconomic forces impacting the year-on-year profit being harvested through the coastal city, casino bosses are looking at new and creative ways to spur on future growth. Maddox will have to navigate this issue just as well as he has applied careful corporate governance in the past. Macau is in a vulnerable position, tied to the Chinese economy which is teetering on the edge of a full-scale trade war with the US, and a wealthy upper-class that may no longer be able to afford the exuberance of high-roller gambling, Maddox and his team certainly have their work cut out.
But if the past is anything to go by, this experienced casino executive will carve out a strong future for not only Wynn Macau but the entire Wynn enterprise. A man who certainly knows what Maddox is capable of achieving is Philip Satre, and he had only praises to bestow on the reinstated CEO:
Matt Maddox successfully navigated the company through its most difficult and challenging circumstances and has rebuilt a solid strategic plan and capital foundation which now positions Wynn Resorts to enjoy a period of remarkable growth and success.–Philip Satre, Chairman, Wynn Resorts Ltd.
The workplace culture at Wynn Macau, under the leadership of Maddox, has become more rewarding, progressive and diverse. This has all been achieved whilst feverously executing the business plan, and scoring major victories in technological innovation, customer retention, and infrastructure expansion. Despite heavy competition in Macau from various other US-based casino operators, the Wynn Macau market share remains consistent, but the net income figures will need to improve if Maddox is to earn the plaudits of the shareholders that he serves.
After brushing the incidents of the past behind them, Wynn is looking very much to the future. Maddox’s leadership through that period was and will continue to be essential to the successful transformation of Wynn Macau. The growth targets expected of him are daunting, but so far Maddox and his team are defying expectations and bringing Wynn from the founder-led era into a new age of innovative global corporation.