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Best of Howard Stutz

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Howard Stutz
 

Outgoing Las Vegas Sands CFO cashes out $7.7 million in company stock

6 July 2013

LAS VEGAS -- The outgoing chief financial officer for Las Vegas Sands Corp. cashed out almost $7.7 million in company stock the day after it was announced he was leaving the casino operator.

According to an insider stock trade posted on Yahoo, Las Vegas Sands CFO Kenneth Kay sold 147,000 shares of company stock on June 26 at $52.28 per share on the New York Stock Exchange.

On the same day, Kay exercised options for the 147,000 shares at between $3.18 and $22.97 per share. According to Yahoo, Kay had ownership of less than 1,000 shares of Las Vegas Sands stock after the sale.

A day earlier, Las Vegas Sands announced in a filing with the U.S. Securities and Exchange Commission that Kay, the company’s CFO since 2008, would leave his position on July 31. Kay earned a base salary of almost $1.2 million as of Dec. 31, according to a different SEC filing by the company.

Las Vegas Sands said Kay entered into “a six-month consultancy agreement” with the company to provide transitional services as needed. Kay also received a one year salary, a pro-rated bonus for 2013 and continued health care benefits for up to one year or until he is newly employed.

“The company will undertake a search for Mr. Kay’s permanent replacement,” Las Vegas Sands said.

A source familiar with the situation said Kay was “let go” by Las Vegas Sands but not for any cause.

Kay’s departure comes as Las Vegas Sands faces investigations by SEC and U.S. Department of Justice over potential violations of the Foreign Corrupt Practices Act.

The allegations were raised in a wrongful termination lawsuit filed by the former chief executive of the company’s Macau casino operations. The case is pending in Clark County District Court.

In April, Las Vegas Sands severed ties with PricewaterhouseCoopers LLC, as its outside auditor since 2004, and appointed Deloitte & Touche LLP. In an April SEC filing, Las Vegas Sands said the company had not had any “reportable disagreements” with the auditing firm going back to 2011.

A Las Vegas Sands spokesman said Kay’s departure “had absolutely nothing to do” with the ongoing investigations or the change in auditors.