Las Vegas Sands seeks new president

Las Vegas Sands has weighed how much authority Chief Executive Sheldon Adelson should turn over as the company searches for a new president.  Adelson, the 80-year-old CEO, chairman and biggest shareholder at Sands, has told some people at the company that he would consider ceding the CEO title if needed to draw the right candidate to succeed President and Chief Operating Officer Mike Leven, his 76-year-old second in command, a person familiar with the matter said.

Last week, the company told people involved with the search that the president's job could be upgraded, sources said. More recently, however, Sands has indicated that the CEO job wasn't in play, one of the people said. Sands said the search is only for a president. "It's not true that Mr. Adelson might cede his CEO title to whoever replaces Mr. Leven,'' said Sands spokesman Ron Reese.

To a degree, the question of title is academic. The person inevitably would have to answer to Mr. Adelson, who controls more than half the company's stock and holds sway over the board. If Mr. Adelson were to give up the CEO spot, he would remain chairman indefinitely, one of the people said.

Still, investors and analysts have said they are eager for answers regarding the company's plans for its leadership following a strong run by Mr. Adelson, who built Sands into a powerhouse by moving more quickly than his rivals to cash in on the gambling boom in Asia.

Las Vegas Sands has four casinos in Macau, the world's largest casino hub, with US$ 45 billion in gambling revenue last year. The company also has an enormous casino resort in Singapore. The city-state, which generated over $6 billion in gambling revenue last year, is nearly as large a gambling market as the Las Vegas Strip.

The company's revenue has roughly tripled in the past five years, including a 24% jump last year, when Sands' profit rose 51%.

Sands' dominance over U.S. competitors Wynn Resorts  and MGM Resorts International in Macau dates to 2002, when Mr. Adelson conceived of a replica of the Las Vegas Strip in Cotai, a swampy landfill connecting two islands off the main peninsula. He borrowed heavily to carry out his vision while others took a more conservative approach.

The search for Mr. Leven's successor likely will begin within a few weeks, some people familiar with the matter said. A search committee has been formed to find and recommend a candidate for the full board's approval, according to the company's proxy statement. Mr. Leven's contract expires at year-end, the statement said.

Rob Goldstein, the company's 59-year-old president of global gaming operations, may be considered as a successor to Mr. Leven, one of the people said. Sands said Mr. Goldstein declined to comment. 

Adelson and his family own about 53% of the company's shares outstanding. The last two executives seen by people inside the company as potential successors left Sands under acrimonious circumstances.

Bill Weidner, a former president and chief operating officer at Sands, left the casino operator in March 2009 after almost 14 years. He had said he disagreed with Mr. Adelson over what course to take after the company's debt piled up and its shares plunged during the financial crisis.

In July 2010, Sands fired Steve Jacobs, the CEO of its crucial Macau operations, saying he exceeded his authority. Mr. Jacobs alleged in a wrongful-termination suit filed in Nevada that year that he was fired for objecting to what he considered to be illegal demands from Mr. Adelson. Las Vegas Sands has denied Mr. Jacobs's allegations and said that they spurred a federal bribery investigation into the company.

The suit filed by Mr. Jacobs and the bribery investigation are pending. Sands last year said its audit committee reached a preliminary finding that there were "likely violations of the books and records and internal controls provisions" of the U.S. antibribery law.

Sands has several vacancies among top management. Ken Kay stepped down July 31 as chief financial officer. Chris Cahill, the company's former executive vice president of global operations, resigned in March. Mr. Kay didn't respond to requests for comment, and Mr. Cahill couldn't be reached. Mark Juliano is stepping down as senior vice president and chief casino officer at the company's Singapore property, Marina Bay Sands, to become president of the company's Pennsylvania casino, Sands Bethlehem.

Reese, the Sands spokesman, said the company has a "deep bench" in Singapore and that colleagues are covering the finance-chief duties. A search could yield a candidate for finance chief, but "the company is happy with the current situation,'' Mr. Reese said. The company is looking for someone to succeed Mr. Cahill.

Adelson has sued Wall Street Journal reporter Kate O'Keeffe for libel. A spokeswoman for the Journal, which wasn't named in the suit, has said the newspaper will "vigorously defend" Ms. O'Keeffe.