- Push-out Score suggests push-out forces
- After less than four years in the position
- Praise, thanks and good wishes for Krug
- David Smetana taking over
(exechange) — Jersey City, New Jersey, January 29, 2018 — Tony Krug, finance chief of Mack-Cali, leaves. As announced by Mack-Cali Realty Corporation in a news release and in a regulatory filing published on Monday, January 29, 2018, Anthony (Tony) Krug, chief financial officer, leaves the real estate investment trust (REIT) after less than four years in the position, effective March 31, 2018.
Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, the average tenure of the CFOs who departed over the past twelve months was 6 years, according to data compiled by exechange.
Krug’s move comes ten months after Michael J. DeMarco took over as CEO of Mack-Cali Realty Corporation.
Krug’s duties will be taken over by David Smetana, most recently managing director and REIT securities analyst on Morgan Stanley Investment Management’s Global REIT Securities Team.
The fact that Krug’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.
In general, an outsider does not have the constraints of an insider when it comes to leading painful changes or making unpopular decisions.
Krug’s move is part of a management shake-up also involving the position of executive vice president of leasing.
“To pursue other opportunities”
The management change is explained as follows. Mack-Cali said: “Mr. Smetana will begin to perform his duties as chief financial officer upon the departure of Mr. Anthony Krug, who will be leaving Mack-Cali to pursue other opportunities.”
The phrase “to pursue other opportunities” opens the door to speculation.
Precise information about Krug’s future plans was not immediately available.
Mack-Cali said: “Mr. Smetana will begin to perform his duties as chief financial officer upon the departure of Anthony Krug, whose employment with the General Partner will terminate effective March 31, 2018.”
Share price decline
The change follows a decline in the share price of Mack-Cali Realty Corporation since June 2017.
Chaired by William L. Mack
Mack-Cali Realty Corporation is chaired by William L. Mack.
William L. Mack has served as a member of the Board of Directors since 1997 and as its chairman since 2000.
CEO: Michael J. DeMarco
Michael J. DeMarco serves as CEO of Mack-Cali Realty Corporation.
Michael J. DeMarco has been the Chief Executive Officer at Mack-Cali Realty Corporation since April 5, 2017 and served as its President and Chief Operating Officer from June 2015 to April 5, 2017.
In the position of CFO since 2014
Anthony Krug has been the Chief Financial Officer at Mack-Cali Realty Corporation since May 30, 2014.
Anthony Krug serves as chief financial officer for the Company.
Krug is responsible for Mack-Cali’s strategic financial planning and forecasting, financial accounting, reporting and compliance, capital markets activities, investor relations, and information technology systems.
Prior to joining the Company, Krug held positions with Cali Associates and Cali Realty Corporation, predecessor companies of Mack-Cali.
His current professional affiliations include being a member of the American Institute of Certified Public Accountants (AICPA) and the New Jersey Society of Certified Public Accountants (NJSCPA). Krug is a certified public accountant and received a Bachelor of Science in Business Administration from Richard Stockton State College of New Jersey.
Krug will continue to serve as chief financial officer during the transition period in the first quarter of 2018.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Tony Krug’s move.
The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the change.
Read the full story in the exechange report 6.2018 ($).