Final answer:
Board members could justify Steve Wynn's executive compensation by arguing that it is aligned with the company's strong financial performance, necessary to retain a highly skilled executive, and in line with industry standards.
Step-by-step explanation:
Board members could make several arguments to justify Steve Wynn's executive compensation, according to the case Corporate Governance and Executive Misconduct at Wynn Resorts:
- Steve Wynn's compensation is aligned with the company's strong financial performance. If Wynn Resorts has been performing exceptionally well financially, the board members could argue that Steve Wynn's compensation is deserved as he contributed to the company's success.
- The compensation is necessary to retain a highly skilled and successful executive like Steve Wynn. If Steve Wynn is considered a valuable asset to the company and there is a risk of losing him to a competitor, the board members could argue that the compensation is necessary to ensure his continued loyalty and contribution to the company.
- The board conducted a thorough benchmarking analysis, and Wynn's compensation is in line with industry standards. If the board has compared Steve Wynn's compensation package with similar positions and companies in the industry and found it to be in line with industry standards, they could argue that it is fair and justified.
Therefore, all of the above are arguments that board members could make to justify Steve Wynn's executive compensation.