Wanger's second spell with Paramount lasted from 1924 to 1931, during which time his annual wage rose from $150,000 to $250,000. He was tasked with overseeing the work of the studio heads, which meant he had little involvement with the production of individual films. Because he was based in New York, Wanger worked more closely with the company's Astoria Studios in Queens. A rivalry developed between Wanger-influenced Astoria productions and those of B.P. Schulberg who ran the Paramount productions in Hollywood. From the mid-1920s, the company was rapidly overtaken by the recently formed Metro-Goldwyn-Mayer as the industry's leading company and this along with heavy losses incurred on big-budget films, led to Paramount's executives decision in 1927 to eventually close the New York operation and shift all production to Hollywood. Wanger opposed this move and felt he was being squeezed out of the company.