Global Net Lease CFO Nick Radesca leaves at short notice

  • Push-out Score suggests push-out forces
  • After less than one year on the job
  • Praise and good wishes for Radesca
  • Chris Masterson taking over

(exechange) — New York, October 10, 2017 — This news came the day after Columbus Day. Nick Radesca, finance chief of Global Net Lease, leaves the position. It is a change at short notice. As announced by Global Net Lease, Inc. in a news release and in a regulatory filing published on Tuesday, October 10, 2017, Nicholas A. (Nick) Radesca leaves the post as chief financial officer at the real estate investment trust after less than one year on the job, effective on or about November 15, 2017.

No company wants a CFO to flame out in the first year.

Among the 3,000 largest publicly held companies incorporated in the U.S. based on market capitalization, only 6 percent of the CFOs who departed over the past twelve months left within their first year. Around 22 percent left within two years, and 37 percent left within three years. Overall, the average tenure of those who left was 5.6 years, according to data compiled by exechange.

Radesca’s move comes two months after James L. Nelson took over as CEO of Global Net Lease, Inc.

Radesca’s resignations will be effective on the later of November 15, 2017, and the day after the date the Company files its Quarterly Report on Form 10-Q for the quarter ended September 30, 2017.

Radesca’s duties are taken over by Chris Masterson, currently chief accounting officer at Global Net Lease, Inc.

“To pursue other interests”

The imminent management change is explained as follows. Global Net Lease said: “Mr. Radesca notified the Board on October 6, 2017 that he intends to retire from his role with GNL as a public company executive to pursue other interests.”

The phrase “to pursue other interests” opens the door to speculation.

Precise information about the future plans of Radesca was not immediately available.

Wake-up call

Generally speaking, it is often an alarm signal for shareholders when a CFO leaves the post at short notice and without an understandable explanation.

“Retire”

Global Net Lease said: “On October 6, 2017, Nicholas Radesca notified the board of directors … of Global Net Lease, Inc. … that he intends to retire and therefore resign from his positions as chief financial officer, secretary and treasurer of the Company, Global Net Lease Advisors, LLC …, the Company’s advisor, and Global Net Lease Properties, LLC …, the Company’s property manager.”

“No disagreements”

“There were no disagreements between Mr. Radesca and the Company or the Advisor,” Global Net Lease said.

It is a phrase that may be intended to prevent false rumors. It may also fuel further speculation and raise more questions than it answers. Such a phrase should be read very carefully. The exact wording may be insightful.

“Mr. Radesca advised the Company he will no longer be responsible for any part of any registration statement filed by the Company pursuant to and consistent with 15 U.S.C.§ 77k(b)(l),” Global Net Lease further said.

Chaired by P.Sue Perrotty

Global Net Lease, Inc. is chaired by P.Sue Perrotty.

CEO: James L. Nelson

James L. Nelson serves as CEO of Global Net Lease, Inc. Nelson has been Chief Executive Officer and President at Global Net Lease, Inc. since August 11, 2017.

On the job as CFO since 2017

Nicholas A. Radesca has been the Chief Financial Officer, Treasurer and Secretary at Global Net Lease, Inc. since January 20, 2017.

Radesca has served as chief financial officer of the Company, the Advisor and the Property Manager since January 2017.

Radesca has served as the interim chief financial officer and treasurer of NYCR, the NYCR advisor and the NYCR property manager since June 2015.

Radesca has served as chief financial officer, treasurer and secretary of AFIN, the AFIN advisor and the AFIN property manager since November 2015.

He also previously served as an executive officer of AFIN, the AFIN advisor and the AFIN property manager from December 2014 until May 2015.

Radesca previously served as the interim chief financial officer, treasurer and secretary of NYRT, the NYRT advisor, and the NYRT property manager from June 2015 until March 2017, and previously served in such capacities from February 2014 until March 2014.

Radesca previously served as chief financial officer, treasurer and secretary of DNAV, the DNAV advisor and the DNAV property manager from January 2014, November 2014 and December 2014, respectively, in each case until the dissolution and liquidation of those entities in April 2016.

Radesca previously served as chief financial officer, treasurer and secretary of RFT and the RFT advisor from November 2015 until September 2016.

Radesca also previously served as an executive officer of RFT and the RFT from January 2013 until November 2014.

Radesca previously served as the chief financial officer, treasurer and secretary of Axar Acquisition Corp. (formerly AR Capital Acquisition Corp.) from August 2014 until October 2016. Radesca previously served as an executive officer of BDCA from February 2013 until December 2015.

Beginning in June 2015, Radesca served as the interim chief financial officer and treasurer of American Realty Capital New York City REIT II, Inc. (“NYCR II”), the NYCR II advisor and the NYCR II property manager.

In December 2015, NYCR II’s stockholders approved the fund’s dissolution and liquidation. Radesca also served as the interim chief financial officer, treasurer and secretary of HOST, the HOST advisor and the HOST property manager from May 2014 until December 2014.

Radesca served as interim chief financial officer of RCA and the RCA advisor from May 2014 until December 2014.

Beginning in June 2015, Radesca also served as interim chief financial officer of RCA II and the RCA II advisor.

In January 2016, RCA II’s stockholders approved the liquidation and dissolution of the fund.

Beginning in October 2013, Radesca served as the chief financial officer and treasurer of the general partner of American Energy Capital Partners — Energy Recovery Program, LP, whose unitholders approved the fund’s dissolution and liquidation in November 2015.

Radesca also previously served as an executive officer of the advisor to UDF V from September 2013 until April 2016.

Prior to joining the predecessor to AR Global, the parent of the Company’s sponsor, in December 2012, Radesca was employed by Solar Capital Management, LLC, from March 2008 to May 2012, where he served as the chief financial officer and corporate secretary for Solar Capital Ltd. and its predecessor company, and Solar Senior Capital Ltd., both of which are publicly traded business development companies.

From 2006 to February 2008, Radesca served as the chief accounting officer at iStar Financial Inc. (“iStar”), a publicly traded commercial REIT, where his responsibilities included overseeing accounting, tax and SEC reporting.

Prior to iStar, Radesca served in various senior accounting and financial reporting roles at Fannie Mae, Del Monte Foods Company, Providian Financial Corporation and Bank of America.

Radesca has more than 20 years of experience in financial reporting and accounting and is a licensed certified public accountant in New York and Virginia.

Radesca holds a B.S. in accounting from the New York Institute of Technology and an M.B.A. from the California State University, East Bay.

Radesca is expected to enter into an agreement with the Advisor to provide certain consulting services to the Advisor through June 30, 2018.

At the time of Radesca’s appointment as chief financial officer at Global Net Lease, the Company had said: “Mr. Radesca brings a wealth of experience in senior accounting, tax and financial reporting and leadership roles at various public companies, and has served in senior accounting roles, including CFO, for global companies with a segment of their business operating outside the U.S. Mr. Radesca also brings valuable experience in hedging strategies and multi-currency global operations.”

Push-out Score suggests push-out forces

It is not completely certain what forces eventually triggered Nick Radesca’s imminent 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 42.2017 ($).