Shares of Wynn Resorts (NASDAQ:WYNN) posted a double-digit rally after founder Steve Wynn, facing allegations of sexual misconduct, resigned as CEO.
The stock climbed $13.14, or 8.1%, to $176.36 on Wednesday after declining 1.4% on the previous day.
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Wynn’s resignation, which the company announced in a statement Tuesday evening, came after allegations of sexual misconduct against him were detailed in a January report in The Wall Street Journal. Since that story was published, the stock had fallen almost 20%.
The board appointed Matt Maddox, the president, as its CEO, and Boone Wayson as non-executive chairman of the board of directors, effective immediately. Wynn, 76, remains in control of about 21% of Wynn Resorts through his own holdings and the stake held by his ex-wife, Elaine Wynn, Bloomberg reported.
"It is with a collective heavy heart, that the board of directors of Wynn Resorts today accepted the resignation of our founder, CEO and friend Steve Wynn," Wayson said in the statement.
The resignation came more than a week after Wynn left his post as the Republican National Committee's finance chairman.
Dozens of women accused the business magnate of engaging in inappropriate behavior, and more than 150 others spoke out against him, the report said.
Wynn has denied all of the allegations against him.
“I have found myself the focus of an avalanche of negative publicity,” Wynn said in a statement. “As I have reflected upon the environment this has created — one in which a rush to judgment takes precedence over everything else, including the facts — I have reached the conclusion I cannot continue to be effective in my current roles.”
This story has been updated.