Casino operator Las Vegas Sands Corp. told its president and chief operating officer last week that he was going to be replaced, only for William P. Weidner to resign from his posts four days later, a regulatory filing revealed on Tuesday.
The disclosure comes a day after the Sheldon Adelson-led company said in a statement that Weidner was no longer part of the organization and would not serve on its board. When contacted by The Associated Press on Monday for further details, Sands spokesman Ron Reese said more information would be forthcoming in an upcoming filing and declined further comment.
According to the latest Securities and Exchange Commission document, two Las Vegas Sands’ board members met with Weidner on March 4 and told him that they were hiring director Michael A. Leven to replace him. The casino operator and Weidner tried to work out departure terms for several days, but couldn’t reach an agreement, the filing said.
Four days later Weidner told the company he was resigning, but the SEC filing said Las Vegas Sands feels that Weidner’s March 4 meeting with the board members served as a notice that he would no longer be working there.
Weidner’s resignation letter, which was sent on March 8 and included in the filing, indicated that he and Adelson had ongoing disagreements about how to manage the company.
The executive dispute does not come as much of a surprise, as an SEC filing in November revealed substantial internal conflict was under way at the casino operator. The company’s board had created a committee to resolve disputes between Adelson and other senior managers, to evaluate the company’s decision-making and address "a loss of confidence" by managers.
Weidner, 62, said a week later at a forum for investors that he thought the infighting was similar to what happens at other companies.
"I think you can think of it as a junkyard dog fight," he said at the time.
That same month, Las Vegas Sands completed an offering of common stock, preferred stock and warrants that provided a much-needed capital infusion of about $2.1 billion.
Weidner commented at the investor forum that the company made a mistake in not raising the capital more quickly to keep in compliance with debt obligations.
"It was a matter of robust debate within the organization. There are several of us who have very strong opinions," Weidner said. "It was pretty much a monumental screw-up."
A day after Weidner’s resignation letter was sent, Las Vegas Sands officially named Leven as his replacement.
While familiar with the organization — Leven has been a Las Vegas Sands’ board member since August 2004 — his experience primarily resides in the lodging industry.
Leven, 71, is the founder and former president and chief executive of US Franchise Systems Inc., which developed and franchised the Microtel Inns & Suites and Hawthorn Suites hotel brands. He has also held posts at Holiday Inn Worldwide, Days Inn of America and Americana Hotels.
Leven’s responsibilities as president and COO of Las Vegas Sands will include overseeing the company’s U.S. and international locations. He will start in the roles on April 1.
The executive change comes as Las Vegas Sands prepares to open a $743 million casino in Bethlehem, Pa., on May 22 and a $5.4 billion resort in Singapore in December. The company has suspended other projects and cut spending at its casinos in Las Vegas and Macau, the gambling enclave in China.
Sands reported losing $136.5 million in the fourth quarter last year.
Monday, shares of Las Vegas Sands tumbled 20 percent to close at $1.42, down about 80 percent since the start of the year. In premarket trading Tuesday morning, the stock jumped 16 cents, or 11.3 percent, to $1.58 cents.