Wynn sets employees at ease

David Strow

Friday, March 17, 2000 | 11:17 a.m.

Mirage Resorts Inc. Chairman and Chief Executive Steve Wynn is hinting to employees he won't be out of the Las Vegas gaming industry for long after leaving the company when it's acquired by MGM Grand Inc.

Wynn hasn't made any public comments as to why he agreed to the buyout. But in remarks to managers Tuesday, Wynn didn't express anger or disappointment over the end of his reign at the helm of Mirage Resorts, sources say.

Instead, a source says, Wynn praised MGM Grand officials and controlling shareholder Kirk Kerkorian as "people in whom I could entrust the future of this company," and tried to assure employees that they didn't need to fear for their jobs.

"The truth is, I want to be like Kirk (Kerkorian, controlling shareholder of MGM Grand) when I'm 82 years old," Wynn said, according to a Mirage source who attended the meeting with Wynn. "I've only got 25 years left to do it."

Wynn then told employees it was quite possible he would be a competitor on the Strip again, and soon.

"I would guarantee it," one Mirage official said after hearing Wynn speak. "I don't even think he's ready to take that much of a rest ... maybe a month."

MGM Grand has agreed to acquire Mirage Resorts for $21 per share, a bid worth $6.4 billion. In leaving, Wynn will gross about $500 million from the sale of his stake in Mirage, as well as an $11.25 million "golden parachute" payment. Wynn also will have the right of first refusal to purchase any artworks from the Bellagio art gallery sold by MGM Grand.

Five MGM Grand officials attended the afternoon meeting: Chairman J. Terrence Lanni, co-chief executives Daniel Wade and James Redmond, President and Chief Financial Officer Jim Murren and Bill Hornbuckle, president of the MGM Grand hotel-casino. Elaine Wynn, a Mirage Resorts director and wife of Steve Wynn, also spoke briefly.

About 900 executives and managers from Mirage Resorts were in attendance.

Alan Feldman, spokesman for Mirage Resorts, confirmed that the meeting occurred but declined to go into detail on what was addressed.

"Mr. Wynn was sharing his personal thoughts and feelings about this transition with his colleagues," Feldman said. "I don't think it would be appropriate for us to speak about that to the public. I view it as a private meeting."

But those who attended the meeting said MGM Grand executives relayed assurances from Kerkorian that employees had little reason to fear for their jobs in the wake of the merger. Noting the lack of communication with employees during past mergers on the Strip, the executives vowed to keep employees posted on the latest developments.

Wynn then assured employees they could trust Kerkorian.

"There is no fear here," a source quoted Wynn as saying. "They bought this company because they love it, and they are dying to learn from you.

"(Kerkorian) is the most stable man I have ever known in my entire career in the state of Nevada. He says what he means, and he means what he says," Wynn said, according to a source.

After losing control of the company he'd controlled so closely over the past several decades, Wynn showed no signs of regret or anger, attendees said.

"Change is good sometimes," Wynn said, according to a source. "New beginnings are wonderful, and there's nothing to be afraid of."

Wynn, whose creative designs are widely credited with starting the transformation of the Strip in the 1990s, then likened himself to famed artist Pablo Picasso.

"If Picasso were alive today and he were to visit the Prado Museum (in Madrid), and he were to see one of his masterworks on the wall, he would not be upset he didn't own it," the source quoted Wynn as saying. "He would be proud it was on display for the public to enjoy.

"For me, it's never been about owning hotels. I derive my passion by designing and building them. No matter what I do, I'll always be around to enjoy the hotels we built together," Wynn said, according to the source.