- Push-out Score suggests push-out forces
- After around six years on the job
- Praise and good wishes for Berman
- Heath Fear taking over
(exechange) — Chicago, Illinois, September 21, 2017 — Michael Berman, finance chief of GGP, leaves. As announced by GGP Inc. in a news release and in a regulatory filing published on Thursday, September 21, 2017, Michael B. Berman leaves the post as Chief Financial Officer at the real estate investment trust company after around six years on the job, effective March 01, 2018, or such earlier date as mutually agreed.
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 5.6 years, according to data compiled by exechange.
Berman’s duties are taken over by Heath Fear, most recently Chief Financial Officer at Retail Properties of America, Inc.
The fact that Berman’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.
No reason given
In the announcement, GGP did not explicitly explain the reason for Berman’s move, leaving room for speculation.
Precise information about the future plans of Berman was not immediately available.
GGP said: “GGP Inc. … announced Michael B. Berman is retiring as Executive Vice President and Chief Financial Officer, effective on March 1, 2018, or such earlier date as mutually agreed.”
GGP further said: “On September 19, 2017, Michael B. Berman, Executive Vice President and Chief Financial Officer of GGP Inc. … provided notice to the Company of his intention to retire from the Company on March 1, 2018, or such earlier date as mutually agreed to by the Company and Mr. Berman.”
Share price decline
The change follows a decline in the share price of GGP Inc. since July 2016.
Chaired by J. Bruce Flatt
GGP Inc. is chaired by J. Bruce Flatt.
CEO: Sandeep Mathrani
Sandeep Mathrani serves as CEO of GGP Inc. Sandeep Lakhmi Mathrani has been the Chief Executive Officer at GGP Inc. since January 17, 2011 and also has been its Director since January 24, 2011.
On the job as CFO since 2011
Berman joined GGP in December 2011 and currently serves as Executive Vice President and Chief Financial Officer.
From December 2005 until he joined GGP, Berman served as Executive Vice President and Chief Financial Officer of Equity LifeStyle Properties, Inc. (“ELS”).
From September 2003 until December 2005, Berman served as Vice President, Chief Financial Officer and Treasurer of ELS.
During 2003, Berman was an associate professor at the New York University Real Estate Institute.
Berman was a managing director in the Investment Banking department at Merrill Lynch & Co. from 1997 to 2002.
Berman is a member of the Columbia Business School Real Estate Advisory Board, a member of the Board of Directors and the Chairman of the Audit Committee of Brixmor Property Group Inc., and a member of the Commercial & Retail Development Council of the Urban Land Institute.
Berman received an M.B.A. from Columbia University Graduate School of Business, a J.D. from Boston University School of Law, and a B.A. from Binghamton University in New York.
Berman will be available to assist in the transition of duties through March 1, 2018.
Push-out Score suggests push-out forces
It is not completely certain what forces eventually triggered Michael Berman’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 40.2017 ($).