MGM Shares Jump As CEO Jim Murren Expected to Step Down

Shares of MGM Resorts were climbing higher in Wednesday’s sesson as Wall Street learned that its CEO Jim Murren would be stepping down.

According to the company, Murren will serve his role until a successor is appointed.

It was on Wednesday that MGM announced that Murren would step down ahead of his contract ending. Murren has been CEO since 2008, and he has been with the casino operator since 1998.

Shares jumped more than 7% in after-hours trading on the news, but the stock was last up about 4%. MGM has climbed about 17% over the past 12 months.

“On behalf of the entire MGM Resorts Board of Directors, I want to thank Jim for his years of dedication to the Company and the community,” said Roland Hernandez, Lead Independent Director of the MGM Resorts Board of Directors.

“Jim has led the Company through growth, transforming it into a global entertainment company with a worldwide footprint and creating value for MGM Resorts shareholders. As CEO, he has spearheaded significant achievements across our properties, including the development of the CityCenter destination and has turned resorts into showcases of entertainment and sophisticated architecture. The Board is focused on continuing to create long-term value for MGM Resorts shareholders. The search committee, along with the entire Board, will be dedicating significant attention and resources towards identifying and naming Jim’s successor. Jim will continue to lead the Company during this process.
We will also look to the talented management team in place to help guide the Company into this next chapter.”

“Leading MGM Resorts has been the most rewarding and fulfilling experience in my professional career,” said Mr. Murren.

“It has been an honor to work with such a talented group of men and women who provide millions of guests with memorable life experiences every day all over the world. We have a solid leadership team in place, and I am confident that they will work with my successor to continue the Company’s trajectory of growth and expansion. Until my successor is named, I will continue to lead this Company just as I always have and will remain focused on executing our strategy and am fully committed to supporting a seamless transition.”

Disclaimer: We have no position in MGM Resorts International (NYSE: MGM) and have not been compensated for this article.