PARAMOUNT'S PRESIDENT IS OUT BERMAN QUITS AS STUDIO ROLE ERODES DURING SHORT TENURE.

Byline: GREG HERNANDEZ Staff Writer

After a mostly stormy 18 months on the job, Gail Berman resigned Wednesday as president of Paramount Pictures with two years left on her contract, the studio announced.

Berman, hired in May 2005 by Paramount Chairman and CEO Brad Grey, was responsible for overseeing the annual slate of films for the studio. She will not be replaced under a reorganization of the studio's production units that was announced late Wednesday.

The executives responsible for creating the film lineup under Paramount's various units will report directly to Grey. They are: Scott Aversano, president of MTV Films/Nickelodeon Movies; Brad Weston, president of production of Paramount Pictures, and John Lesher, president of Paramount Vantage.

DreamWorks Pictures Co-Chairman and CEO Stacey Snider will continue in her current role. Out in the reshuffling is Allison Shearmur, co-president of production for Paramount Pictures.

``This new arrangement further fine-tunes our label strategy, and creates a clear path for targeted development for the Paramount slate,'' Grey said in a statement. ``... It makes all the sense in the world to use the strength of our bench to lead the production team.''

Paramount Pictures and DreamWorks will be responsible for providing six to eight movies apiece each year. MTV Films/Nickelodeon will release four to six films annually and Paramount Vantage up to 10 movies a year.

Berman seemed to be under fire during much of her tenure for her reportedly abrasive management style and film-industry inexperience.

Grey credited her Wednesday with shepherding Paramount through such recent box office hits as ``Failure to Launch,'' ``Nacho Libre'' and current release ``Dreamgirls,'' among others, as the studio has become a contender again after several years in the box-office cellar.

``Gail's dedication in the last 18 months has been invaluable during this important and historic time at Paramount,'' Grey stated. ``We respect and appreciate her contributions in reshaping the direction of Paramount Pictures.''

Paramount finished 2006 in fifth place behind Sony, Disney, Fox and Warner Bros., with a cumulative box-office gross of $946.4 million, according to the Web site Box Office Mojo.

Berman, 49, was handpicked to be chief lieutenant to Grey shortly after he succeeded longtime Chairman Sherry Lansing at Paramount. But they had reportedly been experiencing a rapidly deteriorating working relationship.

The former entertainment president of Fox Broadcasting Co., Berman came to Paramount without any experience at a major movie studio but had displayed strong instincts for what would appeal to the public.

During her five-year tenure at the network, Fox launched the monster ratings hit ``American Idol,'' the once-popular but now-cancelled soap ``The O.C.,'' the hit action-drama hit ``24'' and the Emmy-winning ``Arrested Development.''

Prior to Fox, Berman was president of Regency Television and had developed the hit comedy ``Malcolm in the Middle'' for the network. She also developed the cult hit ``Buffy the Vampire Slayer'' for the WB Network when she was president of Sandollar Television.

``From my days on Broadway to my time at Regency Television and Fox and then Paramount, my passion has always been creating exciting entertainment,'' Berman stated Wednesday. ``I'm grateful to Brad Grey for the chance to help bring great films to life and look forward to new professional opportunities ahead.''

When she was hired at Paramount, Berman became the first and only female executive to hold the top posts at both a major film studio and television network.

Berman saw her role dramatically erode when Paramount purchased DreamWorks Pictures and hired former Universal Pictures head Snider to run the unit. This gave Berman far fewer films on the studio's slate.

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