Gary Jacobs, one of the key MGM Mirage executives who helped resolve the company’s financial issues surrounding CityCenter and its corporate matters earlier this year, has resigned from the casino operator.
MGM Mirage announced the resignation in a filing with the Securities and Exchange Commission Friday. Jacobs, had served as the company’s president of corporate strategy, general counsel and secretary. He was also a member of MGM Mirage’s board of directors.
The resignation was effective Tuesday, the day before the grand opening of Aria, the centerpiece of the $8.5 billion CityCenter project. Jacobs attended the opening ceremonies for Aria on Wednesday morning and was seen at the VIP celebration that evening.
No reason was given for the resignation in the SEC filing. MGM Mirage officials would not comment beyond the filing.
Under a separation agreement, Jacobs, 64, will receive $3 million over the next two-and-a-half years and he is entitled to exercise his vested but unexercised stock options and stock appreciation rights.
Jacobs joined MGM Mirage in 2000 as general counsel after spending 12 years as a senior partner of a Los Angeles law firm. He had been in private practice since 1971.
Last spring, Jacobs was credited as one of the key company executives who helped resolve CityCenter’s financial crisis, heighten in March when joint venture partner Dubai World sued MGM Mirage over the project.
In an interview in June, Jacobs said solving CityCenter’s funding problems was key to keeping MGM Mirage from falling into bankruptcy.
“If CityCenter went bankrupt, it would not have only been a horrible situation for Las Vegas, but it would have complicated the corporate issues,” Jacobs said.
MGM Mirage struck a new joint venture agreement with Dubai World to fully fund CityCenter. About a month later, the company completed a $2.6 billion corporate recapitalization effort.
He said it was never clear what direction would be taken to resolve the CityCenter issue.
“It was kind of like going down a river, but you would hit one set of rapids, then you hit another set of rapids, and another and then another one. It was nonstop,” Jacobs said.
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