The Phoenix Suns organization under majority owner Robert Sarver has been the subject of allegations of a toxic work environment. 3:44
Robert Sarver, the majority owner of the Phoenix Suns, will retire as executive chairman of Western Alliance Bancorporation in June.
The NBA launched an investigation into the Suns and the company after a story was published about allegations of racism and sexism in a sometimes hostile and toxic environment. There are allegations in the story.
He has held the title of executive chairman at Western Alliance Bancorporation since the beginning of the year and will be leaving the board in June.
It has been an honor to serve as executive chairman of Western Alliance Bancorporation, and I would like to extend my gratitude to our employees. With the company well positioned for continued success and growth, the time is right for me to start a new chapter. I will always be grateful for the experiences I have had and the relationships I have made during my time at Western Alliance. I have total confidence in the executive team and the oversight of the board.
Western Alliance Bancorporation CEO and President Kenneth Vecchione said in a statement that the success of Western Alliance was made possible by Robert's vision and leadership. Robert was honest, transparent, and led the company with integrity throughout his time as a colleague and as a friend to many of us.
Vecchione told investors on an earnings call in January that the company's board had hired an outside law firm to conduct their own investigation.
The investigation is being directed and overseen by the independent directors and is not related to the company discovered by the Board or the NBA.
On the January call, an analyst from Bank of America Securities asked Vecchione when the investigation would be concluded.
The investigation is being handled by the independent directors and their counsel. Sorry.
Western Alliance Bancorporation did not mention the NBA investigation in its announcement, nor did it give a reason for Sarver's retirement.
A Western Alliance Bancorporation spokesman wouldn't comment on the reasons or timing of the announcement.
The Suns didn't comment.
Western Alliance Bancorporation said that Steve Hilton, the director of its board of directors, would be stepping down in June.
Western Alliance Bancorporation has been a part of the Suns since 2002.
One day after the NBA's board of governors meetings concluded in New York City, the company made an announcement regarding Sarver.
NBA commissioner Adam Silver told reporters that the investigation is still ongoing, when asked about the state of the investigation after the board of governor meetings.
It takes a lot of time to investigate these types of cases. We want to make sure that we are very complete. We are closer to the end than the beginning. It is hard to put a precise time frame on it.
The Wachtell Lipton law firm is leading the NBA investigation.
The top-seeded Suns, who finished the regular season with a franchise-record and NBA-best 64-18 mark, are slated to begin their playoff run this Sunday in Phoenix against either the New Orleans Pelicans or the LA Clippers.
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