- Signs for push-out forces
- After less than one year on the job
- Praise and thanks for August
- David Lukes taking over
- August said 48 words
(exechange) — Beachwood, Ohio, March 03, 2017 — Tom August, chief executive of DDR, leaves. As announced by DDR Corp. in a news release on Friday, March 03, 2017, Thomas F. (Tom) August leaves the post as Chief Executive Officer at the equity real estate investment trust after less than one year on the job.
The exact date of August’s departure was not given in the announcement. Obviously, it was an abrupt change.
August’s duties are taken over by David Lukes, most recently Chief Executive Officer at Equity One.
The move is a generational change as well. David Lukes is about 21 years younger than Tom August.
DDR has already removed the name of August from the leadership page and lists Lukes as President & Chief Executive Officer.
The move is part of a management shake-up also involving the position of Chief Operating Officer and Chief Financial Officer.
Also joining DDR are Michael Makinen who will serve as Executive Vice President and Chief Operating Officer and Matthew Ostrower who will serve as Executive Vice President, Chief Financial Officer, and Treasurer.
“Long-term management succession”
The management change is explained as follows. Terrence R. Ahern, chairman of the DDR Board of Directors said: “One of DDR’s key objectives over the past year has been to ensure long-term management succession.”
“The Board and Tom were in agreement and very pleased”
Ahern continued: “As a result, the Board and Tom were in agreement and very pleased when the opportunity arose to have David, Mike and Matt join DDR. We believe that, with the addition of David and his team, the Company is well positioned to continue to successfully navigate today’s dynamic retail and capital markets environment.”
DDR said: “David Lukes has been named President and Chief Executive Officer of the Company to replace Tom August, who has stepped down.”
Share price decline
The change follows a decline in the share price of DDR Corp. since August 2016.
Chaired by Terrence R. Ahern
DDR Corp. is chaired by Terrence R. Ahern.
Ahern is Co-Founder, Principal and Chief Executive Officer of The Townsend Group, an institutional real estate advisory and investment management firm formed in 1986.
On the job as CEO since 2016
August has been the Chief Executive Officer and President at DDR Corp. since July 11, 2016.
David J. Oakes, former President and Chief Executive Officer of the Company, had been terminated from the Company, effective July 11, 2016.
August previously held the role of President and Chief Executive Officer of Equity Office, the U.S. office platform wholly-owned by Blackstone’s real estate funds, from 2010 to 2015 and has served as a board member of the company since October 2009.
August previously served as president, chief executive officer, and a trustee of the office REIT Prentiss Properties Trust from 1996 until its acquisition in 2006.
August held other executive roles, including chief financial officer, at Prentiss since 1987.
August also served in executive capacities with Cadillac Fairview Urban Development, Inc., Oxford Properties, Inc., and was a vice president of Citibank.
He currently serves as Chairman of the board of DCT Industrial, and has been a board member since 2006.
August earned a bachelor’s degree from Brandeis University and an MBA from Boston University.
At the time of August’s appointment as Chief Executive Officer at DDR, Terrance R. Ahern, Chairman of the Board of Directors of DDR, had said: “I am very pleased to have Tom join DDR as our CEO. Tom has twice successfully led large real estate platforms – one in the public market and one in the private market. Both platforms were best-in-class and rewarding to the companies’ shareholders. We’re excited to have him lead DDR.”
Signs for push-out forces
It is not completely certain what forces eventually triggered Tom August’s move.
The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the management change.
Read the full story in the exechange report 10.2017 ($).