What unusual arrangement did Mervyn LeRoy have at MGM as both a producer and director?

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When Mervyn LeRoy moved from Warner Brothers to Metro-Goldwyn-Mayer (MGM), he was offered an unusual deal that provided him the flexibility to function as either a producer or a director.1

Initially, he utilized this arrangement to produce films for other directors, including Victor Fleming’s classic The Wizard of Oz (1939), before returning to his work behind the camera as a director in 1940.1