MGM Mirage CEO Lanni suddenly announces retirement

The casino industry is losing one of its veteran executives, just as the business faces the triple whammy of a sinking economy, tapped-out consumers and the credit crunch.

J. Terrence Lanni, the 65-year-old chairman and chief executive of MGM Mirage, will retire as of Nov. 30, the company said in a statement late today.

After 13 years at the helm of the Las Vegas company, Lanni said he believed "it is now time to step aside from full-time engagement and turn over the reins to the new generation."

UPDATE: See this latest post on questions that were raised today about a discrepancy in Lanni's academic record -- specifically, about his listing of an MBA from USC.

Lanni told the Associated Press that he had been "thinking about my family requirements and how long I've been in the business -- 32 years, and 13 1/2 years here -- that I thought it was time for a younger generation, very frankly, to take on the responsibilities.

"I think literally with the challenges in the world today it's probably better served by younger people," he said.

He recommended that the company’s board choose Jim Murren, MGM’s 47-year-old president, as his successor.

Lanni said he would remain on MGM’s board.

Kirk Kerkorian, the company’s majority shareholder, has suffered huge losses on his MGM stake and on a busted investment in Ford Motor this year. MGM shares have dived 87% year to date. Ford is down 72%.

Kerkorian said in a statement that the company "will always be indebted to Terry for his many years of leadership and wisdom."

MGM stock rose 77 cents to $10.77 before the announcement.

MGM has been forced to shelve projects outside Las Vegas as it seeks to maintain enough funding to complete its gigantic CityCenter project on the Vegas Strip.

Photo: J. Terrence Lanni (Nelson Ching /Bloomberg News)

Comments

[Chris]

Uhh, you failed to mention he just got caught lying about having an MBA from USC.

[Keith]

MGM Mirage has a market cap of $2.89 billion. Stated book value is $18.00 per share. The stock sells for just under $11.00 per share. So for under $3 billion someone can own most of Las Vegas Strip.