Steve & Elaine Wynn: The Casino Divorce That Created a Boardroom Rival
She got $741 million in Wynn Resorts stock -- and became one of the most powerful shareholders in Las Vegas
Key Facts
What Happened
Steve and Elaine Wynn married in 1963, divorced in 1986, and remarried in 1991 -- making them one of several famous couples who tried marriage twice. Their second divorce, finalized in 2010, was one of the most consequential in corporate America because it turned a divorce settlement into a corporate governance battle that lasted over a decade.
The settlement gave Elaine approximately $741 million in Wynn Resorts stock, making her one of the company's largest individual shareholders. However, a stockholders' agreement signed during the divorce restricted Elaine from selling her shares without Steve's approval or the company board's consent -- effectively locking her into a position where she had wealth but no control.
Elaine spent years fighting to remove these restrictions. In 2012, she sued to have the stockholders' agreement voided, arguing it was an illegal restraint on her property rights. The battle intensified in 2018 when Steve Wynn resigned as CEO amid sexual misconduct allegations. With Steve gone, Elaine pushed harder for board seats and unrestricted stock rights.
By 2018, Elaine had won: a court struck down the restrictions on her shares, and she gained the ability to sell freely or exercise her power as a major shareholder. She subsequently used her position to influence board decisions. The Wynn divorce became a landmark example of how stock-based divorce settlements can create unexpected power dynamics in publicly traded companies.
Legal Breakdown: Stock Settlements & Corporate Governance
Stock with Restrictions
Elaine received $741M in stock but with a stockholders' agreement that prevented her from selling without approval. Stock settlements with restrictions are common in corporate divorces -- they preserve company stability but can trap the receiving spouse in an illiquid position. Always negotiate the terms of stock settlements carefully.
Stockholder Agreements in Divorce
The Wynn case shows that divorce settlements can create unintended corporate governance consequences. When a major shareholder's stock is transferred to an ex-spouse, board control, voting rights, and sale restrictions all come into play. Companies should anticipate founder-divorce scenarios in their shareholder agreements.
Voiding Post-Divorce Restrictions
Elaine successfully argued that the stockholders' agreement was an unreasonable restraint on her property. Courts will void restrictions that unfairly limit a divorced spouse's ability to manage their own assets, especially when the restrictions were imposed as part of a settlement negotiation with unequal bargaining power.
What This Means for Your Divorce
- →Stock-based settlements can give you wealth on paper but no real control. Negotiate for unrestricted shares or a timeline for restrictions to expire.
- →Divorce settlements involving publicly traded companies create corporate governance issues that boards must anticipate.
- →A divorcing spouse who receives a major stock position becomes a corporate player -- potentially a hostile one.
- →Stockholder agreements imposed during divorce can be challenged and voided years later if they are deemed unreasonable.
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This article is based on publicly available court records, news reports, and legal analysis. It is provided for educational purposes only and does not constitute legal advice. No attorney-client relationship is created by reading this content.
Divorce laws vary by jurisdiction. Always consult a licensed attorney in your area before making legal decisions.