HCP Chief Leaves Company, Chairman Adds Role on Interim Basis
July 11 2016 - 5:08PM
Dow Jones News
By Tess Stynes
HCP Inc. (HCP) said Chief Executive Lauralee Martin has resigned
from the health-care real-estate investment trust, as the company
proceeds with its plan to spin off its skilled-nursing and
assisted-living operations.
Executive Chairman Michael D. McKee will add the CEO duties on
an interim basis as HCP searches for a permanent successor, a
process it expects to take three to six months.
Mr. McKee, who had been independent chairman since 2013, became
executive chairman roughly two months ago. Ms. Martin had been CEO
since October 2013.
The company expects to post a third-quarter severance charge of
3 cents a share related to Ms. Martin's departure. Analysts, on
average, expected the company to post per-share earnings of 38
cents in the September quarter.
In prepared remarks on Monday, Mr. McKee stated that with the
completion of its strategic review in May, and the resulting
spinoff plan, that HCP's board thinks that "now is the appropriate
time to advance the process of developing HCP's next generation of
leadership."
HCP, which invests in real estate, has said the spinoff of the
HCP ManorCare operations into a separately traded REIT--which
remains on track to close later this year--will let HCP focus on
its core areas of senior housing and life-science and medical
offices.
"We have made substantial progress towards rebuilding our
executive team to align with our strategic vision for the future,
and identifying our next CEO represents the cornerstone of that
effort," Mr. McKee stated.
Last month, Tom Herzog rejoined the REIT as its chief financial
officer. He previously had served as HCP's finance chief from 2009
to 2011.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
July 11, 2016 17:53 ET (21:53 GMT)
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