New CEO says he’s ready to lead MGM Mirage

By Liz Benston (contact)

Published Tuesday, Nov. 18, 2008 | 1:50 p.m.

Updated Tuesday, Nov. 18, 2008 | 6:52 p.m.

Steve Marcus

Jim Murren speaks at an event.

MGM Mirage's new chairman and chief executive says he learned how to be a leader from a master with whom he has conferred nearly every day for the past decade.

MGM Mirage's board of directors Tuesday elected Jim Murren, 47, to lead Nevada's largest private employer and taxpayer. He replaces Terry Lanni, who stepped down last week amid questions about his educational background.

"Our similarities are greater than our differences," said Murren, who admittedly "chafes under bureaucracy." "He's been an incredible mentor to me and I like to think I can be a mentor to people as well."

Lanni's retirement had been in the works for at least two years, indicating that it was time, at age 65, to turn the reins over to his chosen successor. He remains on MGM Mirage's board of directors and will join the company's diversity committee.

While Lanni is known as a patient and accessible delegator who doesn't meddle much in the work of his trusted lieutenants, Murren has an impetuous personality.

"I'm a very aggressive person and move rapidly on things," Murren said. "He's provided me with a sense of balance and patience. In the past couple of years, I've focused on how he conducts himself and counsels senior management to help us come to our own decisions and conclusions."

Murren's appointment as chief executive was expected, in part because he is a favorite of majority shareholder Kirk Kerkorian as well as Lanni.

Before joining MGM Mirage, Murren spent 14 years on Wall Street as an equity analyst. He received his bachelor's degree in art history and urban studies from Trinity College in 1983.

Murren joined MGM Grand Inc. as chief financial officer in 1998 and the following year became president of the company, which would eventually acquire Mirage Resorts and Mandalay Resort Group.

Both men wasted little time moving up the corporate ranks, with Lanni leading Caesars World, a predecessor to Harrah's Entertainment, at a younger age than Murren is now. They are both athletic and have been described as people persons, charming to underlings and executives alike.

"On Wall Street it's all about outworking the next guy -- it's all performance based," Murren said. "I might not be what everyone would want but few people can outwork and outhustle me. I'm up to the challenge."

Analysts are concerned about the company's ability to finance the more than $1 billion that's needed to finish CityCenter, a $9.2 billion resort complex that opens in late 2009 on the Strip, as well as the prospect of billions of dollars in debt coming due in the next few years.

The company recently raised $750 million in bonds -- an impressive feat given that the credit crisis nearly closed that door for most companies. And yet, the bonds were expensive and aren't expected to cover all of the company's cash needs.

Murren said the company will consider any and all financing options. "It's all about liquidity and fortifying balance sheets and creating financial flexibility. In this battle we're going to deploy every means necessary. Nothing's off the table. And we're going to survive as a much stronger company than when we entered this recession."