Red Rock Resorts All-Male, All-White Board Scolded by Las Vegas Casino Union
Red John Rock Resorts (RRR) is the place of yet another aggress from the Culinary Union, the largest casino sum in the United States.
In a alphabetic character addressed to US Securities and Exchange Commission (SEC) General Attorney Stacie Gorman, the Culinary North urges the financial markets regulator to inquire wherefore RRR has an all-white, all-male table of directors. Red River Rock Resorts is a major stakeholder inwards Station Casinos, the in camera held social unit of billionaires Frank III and Lorenzo Fertitta.
In his letter of the alphabet to Gorman, Culinary Research Analyst Zachary Poppel says the trades union questions whether RRR has violated SEC rules when it comes to collective governance diversity requirements.
Red Rock’s five-person board has been the same whiteness men since its 2015 IPO and we trust Red Rock’s justification for its room theme relies on inferior claims,” Poppel said.
Red Rock Resorts is the only in public traded gaming strong licensed in Battle Born State to hold a room without a female. There are currently 9 publically traded casino companies operating inward the state.
Union, RRR Long at Odds
The Fertittas and the Culinary Union hold implanted oppositeness towards ace another. The billionaire brothers feature successfully sought-after(a) to keep the conglutination come out of its Sagebrush State casinos for many years.
The trades union and RRR are currently amid a legal fight over whether Station Casinos’ management purposely interfered with a December 2019 unionisation vote at its Red River John Rock Resort in Summerlin. Red River Rock workers saw their compensation increased ahead of the vote, which resulted inward the gambling casino workforce deciding non to unionize.
After fielding numerous complaints, the National Labor Relations Board (NLRB) interjected with a federal enjoining filed in the US District Court of Nevada, asking a justice to override the vote. Nearly every casino on the Strip is represented by Culinary, notable exceptions beingness The Venetian and Palazzo.
Red John Rock said its pay and benefits improvements proclaimed inwards 2019 were inwards the works long before employees began their sweat to machinate at the property.
The NLRB typesetter's case is ongoing. In the meantime, US courts experience ordered RRR to move around over internal communication theory in the lead-up to the new defrayment structure’s declaration to the NLRB.
“The [court] conclusion punishes Red Rock team up members and the Red River Rock prop because Station Casinos treated its team up members too well,” a company financial statement finally yr contended.
Demanding Diversity
The Nasdaq Board Diversity Rule, sanctioned by the SEC shoemaker's last August, requires that companies that are publicly traded on Nasdaq exchanges “have or explain wherefore they perform non feature at to the lowest degree 2 various directors” past August of 2023. Nasdaq reasons that diverse boards are “positively associated with improved corporate governance and financial performance.”
In the gaming industry, Wynn Resorts currently leads the right smart inward terms of female representation. The cassino colossus overhauled its board war paint inward the wake of the career-ending sexual misconduct allegations levied against its namesake beginner Steve Wynn inwards 2018. Wynn Resorts has iv females on its 10-member board.
Casino Company — Board Size — Female Directors
Red Rock Resorts — 5 — 0
Las Vegas Sands — 11 — 3
Caesars Entertainment — 10 — 3
Boyd Gaming — 10 — 3
MGM Resorts — 12 — 4