MGM/UA’s Lee Rich Resigns as Chairman, Chief Executive

Every time controlling shareholder Kirk Kerkorian rearranges the pieces of MGM/UA Communications, high-ranking executives fall out. On Monday, Lee Rich, the company’s chairman and chief executive, became the latest Kerkorian casualty when he announced his own decision to quit his $1.7-million-a-year post.

Rich’s resignation comes one week after Kerkorian disclosed plans to split the company into two separate entities, selling a 25% interest in Metro-Goldwyn-Mayer Pictures to industrialist Burt Sugarman and producers Jon Peters and Peter Guber. Kerkorian owns 82% of MGM/UA’s stock.

Rich will be replaced by Kerkorian’s attorney and confidante, Stephen D. Silbert, the company’s president and chief operating officer since October, 1986. Before that, Silbert served on Kerkorian’s personal staff and had been a senior partner at the Los Angeles law firm Wyman, Bautzer, Kuchel & Silbert.

Silbert said Rich was not forced to leave as a result of the restructuring. “I think he just decided he wanted to pursue other opportunities,” Silbert said. Rich could not be reached for comment, and his plans are unknown.

“Perhaps there was some disagreement about the breaking up of the company that might have led to (Rich’s) departure,” said Jeffrey Logsdon, an entertainment analyst at Crowell, Weedon & Co. in Los Angeles. “There was no role for Lee.”

The restructuring set off widespread speculation in Hollywood about the future of Rich and Alan Ladd Jr., chairman and chief executive of MGM. Silbert said Monday that Ladd plans to stay in his post.

Silbert, the architect of the company’s latest restructuring, will serve as chairman and chief executive of UA when the two companies separate, leaving operating control of MGM to Peters and Guber.

At MGM/UA, Rich had a mixed record. He gave the green light to the latest James Bond thriller, “The Living Daylights,” which grossed $175 million worldwide at the box office, and “Moonstruck,” which won three Academy Awards. But the high-priced “Willow” has shown mediocre results at the box office so far this summer.

Rich co-founded Lorimar Productions, which churned out such TV hits as “Dallas.” He added the popular “thirtysomething” series to MGM/UA’s television list.

For the nine months ended May 31, MGM/UA lost $10.8 million, against $41.9 million lost in the year-earlier period.

Logsdon said Rich “had a difficult task from the beginning” because of the high overhead left in place by the company’s 1985 restructuring.

Times staff writer Jesus Sanchez contributed to this story.