Published Friday, Dec. 18, 2009 | 9:12 a.m.
Updated Friday, Dec. 18, 2009 | 6:51 p.m.
MGM Mirage on Friday disclosed the surprise resignation of Gary N. Jacobs, a director, general counsel and president of corporate strategy.
A filing with the Securities and Exchange Commission didn’t say why Jacobs resigned on Tuesday, and the company had no comment beyond the report to the SEC, a spokeswoman said.
The Las Vegas-based company said in its filing that under a “resignation agreement” with Jacobs, he will be paid $3 million over two and a half years and can exercise his vested stock options and stock appreciation rights.
Jacobs’ resignation was a surprise since the company on Aug. 31 had signed a new employment agreement with Jacobs in which he had agreed to serve until Aug. 4, 2013, at an annual base salary of $1.2 million.
One analyst suggested observers shouldn’t read much into the lack of company comment and the lack of a press release with company comment on Jacobs’ tenure and departure.
“Whatever happened, both parties of course agreed to it,” said Bill Lerner of Union Gaming Group.
“I know Gary contributed on tremendous scale over time,” Lerner said, adding he saw Jacobs at the opening of CityCenter enjoying himself, “which says something positive.”
Under the resignation agreement, Jacobs “provided a general release of claims against the company, and the company provided a limited release of certain claims against him,” MGM Mirage’s filing said.
“The agreement also provides that restrictive covenants (e.g., Mr. Jacobs’ agreement not to compete or solicit) included in his employment agreement survive the termination of the employment agreement and are incorporated into the agreement,” the gaming and hotel operator said.
A June SEC filing noted Jacobs, 63 at the time, had been a member of the MGM Mirage board of directors since 2000 and owned some 876,000 company shares.
He joined the company, then called MGM Grand Inc., shortly after MGM Grand completed its acquisition of Mirage Resorts Inc. in 2000.
Jacobs’ initial title was executive vice president — general counsel. He came to the Las Vegas company from the Los Angeles law firm of Christensen, Miller, Fink, Jacobs, Glaser, Weil & Shapiro LLP, where he was a partner.
MGM Mirage stock closed Friday at $9.64, down 25 cents or about 2.5 percent. The stock opened the week, which was dominated by CityCenter News, at $10.18.
MGM Grand, a AAA Four Diamond resort, offers 5,044 rooms and suites.
MGM Grand features KÀ by Cirque du Soleil; Brad Garrett’s Comedy Club; and world-class entertainment at the Grand Garden Arena and Hollywood Theatre.
The resort offers signature restaurants by celebrity chefs including Tom Colicchio’s Craftsteak, Emeril Lagasse’s New Orleans Fish House, Wolfgang Puck’s Bar & Grill and Michelin three star and Forbes Five Star restaurant, Joël Robuchon.
As part of its ongoing “Grand Renovation,” MGM Grand has remodeled all rooms and suites in its main tower and is adding several new experiences to its lineup including Hakkasan Las Vegas Restaurant and Nightclub, a new upscale dining/nightlife concept (coming in April 2013).
MGM Grand also features a state-of-the-art, non-smoking conference center, the Grand Spa, Cristophe Salon, "CSI: The Experience" and an inviting pool complex featuring the tantalizing daylife of Wet Republic.
Upscale accommodations include The Mansion, an exclusive hotel within the hotel; the luxurious two-story SKYLOFTS at MGM Grand; and The Signature at MGM Grand, a luxury all-suite, non-gaming hotel located adjacent to the main resort.