AGI is not familiar with Bill Weidner’s literary tastes, but if he’s read much Shakespeare he’ll know that spring is a dangerous time for leaders. ‘Beware the Ides of March,’ Julius Caesar was warned (to no avail) by a soothsayer in the Bard’s play.
We don’t claim to see into the future, or to have Shakespeare’s literary prowess, but last year we predicted a major boardroom reshuffle at LVS as part of the fall out from its emergency refinancing.
Here’s what we said in Asian Gaming Intelligence on 19th November.
“Don’t be surprised if LVS announces an executive reshuffle quite soon. The most recent of LVS’s routine but now famous filings to the US Securities and Exchange Commission referred to ‘a loss of confidence’ among some managers in how the company is run.”
We went on to point out that when a company sets up what in effect is a sub committee within the board and the company chairman is heading that sub committee, then it’s unlikely to produce decisions to his disadvantage.
And lo, it came to pass. First the board within the board set its sights on William Weidner, for 13 years the President and Chief Operating Officer of LVS, and “helped him resign a little bit,” to use Mr Adelson’s memorable phrase.
The fatal blow to Mr Weidner was delivered on 4th March when he was told the company would no longer employ him. Like Julius Caesar in the Roman senate he reportedly staggered on for a little while looking for support—before pulling his executive toga over his head, succumbing to his corporate wounds and exiting stage left on 8th March.
The following day James Purcell, an LVS director since 2004, played the role of Lepidus, Caesar’s faithful cavalry commander, by following Mr Weidner into the LVS Underworld.
In his farewell oration, extracts from which were published in the Las Vegas Sun, Mr Purcell stated: “It was, in my judgment, wrong to engage in discussions with Weidner to request his resignation without a full and open discussion of the potential consequences of the series of actions that were planned.”
He went on: “No business enterprise should undertake the significant actions that have been and are proposed to be taken… without a full meeting of the board.
“In presenting this resignation, I do so with sadness because I am not unaware that submission of a non-quiet resignation has consequences not only for the company, but for me personally. I regret both, but management must respect the board in its entirety and it has not done so.”
‘Not unaware’? There’s a theatrical turn of phrase if ever there was one.
Nine days later, on 18th March, Bradley Stone, Executive Vice President and President of Global Operations and Construction, announced his resignation from LVS. Several analysts had predicted Mr Stone’s departure, indicating he had worked closely with Mr Weidner for two decades. The company was at pains though to point out that Mr Stone was no Mark Antony out to avenge Caesar’s death.
Sheldon Adelson, Chairman and Chief Executive of LVS, told the Associated Press Mr Stone’s departure was for “personal reasons” and had nothing to do with Mr Weidner leaving. And Mr Stone cannot be said to be going off in a huff, given that he announced his farewell in an orderly manner and in advance.
Whatever the specifics of Mr Stone’s exit, Mr Adelson himself can hardly be characterised as Caesar’s nemesis Brutus. History buffs will recall that chaos, not order, followed the removal of Caesar and that Brutus came to a sticky end.
Mr Adelson can point to the opposite—order from potential chaos. His company’s stock price has actually been rising steadily since the high profile board departures began, appearing to vindicate his stand and suggesting the ‘mob’ (i.e., financial markets) are heartily behind him.
“I have never been as pessimistic as Bill Weidner wanted to be,’ Mr Adelson told AP. “He thought that the decisions that were being made were not the right decisions, but then again he’s not the boss.”
It looks as though Mr Adelson’s business empire may now be entering a period of calm after its brief civil strife. The special committee formed to resolve disputes between Mr Adelson and other senior managers has been disbanded—the clearest indication yet that all the would-be kings are dead. Long live the king?
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