Saltzman Out, Barrack in at Colony Capital
Barrack has reassumed the position he had when he founded Colony as a private company in 1991, and held until 2014 when Colony merged into Colony Financial, Inc.
LOS ANGELES—Colony Capital Inc., in a shakeup of its executive suite, reports that Richard Saltzman has resigned as CEO, president and a director of the company. He is being replaced by Thomas J. Barrack, Jr., the company’s executive chairman, who has taken on the additional role of CEO of the company.
Barrack has reassumed the position he had when he founded Colony as a private company in 1991, and held until 2014 when Colony merged into Colony Financial, Inc.
Saltzman’s resignation as CEO was mutually agreed upon by the long-time Colony executive and the company’s board of directors. Saltzman will remain in a non-executive capacity as chairman of both Colony Credit Real Estate Inc. and NorthStar Realty Europe that ware externally managed by subsidiaries of the company.
Other leadership changes at Colony include Darren Tangen, the company’s current chief financial officer, being named president, effective immediately. Tangen will resign as chief financial officer, effective Jan. 1, 2019. At that time, Mark Hedstrom, Colony Capital’s current chief operating officer, will reassume the additional responsibilities of CFO, a position he held prior to Colony’s 2014 merger into Colony Financial, Inc.
Colony Capital also reports that in connection with its exit of certain non-core business lines and as part of a reorganization and restructuring plan, the company will begin a series of steps to reduce overhead. The firm expects to implement between $50 million to $55 million in total annual general and administrative cost reductions over the next 12 to 18 months. These cost reductions are designed to leave the company “more nimble and de-centralized, with a focus on pay-for-performance.”
In a statement, the company’s board of directors states, “Since the combination of Colony Financial and Colony Capital to create the listed entity Colony Capital, and since the complex merger of Colony and the NorthStar entities, Mr. Saltzman has tirelessly worked to position the company for the future. We are grateful for his contributions and wish him continued success. We are pleased that Tom will again be Colony’s CEO.”
“Today I leave Colony well positioned to invest and flourish through economic cycles. I am proud of what has been accomplished during my more than 15-year leadership stint at Colony Capital, including the last four years as a public company. More importantly, I am optimistic about the long-term outlook for the company,” Saltzman says.
Barrack adds, “Richard has been my partner and friend for almost three decades. He is also one of the most highly regarded executives in our industry. Richard’s impact on many of today’s leading real estate companies cannot be overstated, and Colony is no exception.”
The company also reported its third quarter financial results today. The firm reported a net loss attributable to common stockholders of $ 70 million, or $(0.15) per share, and core FFO of $102.2 million, or $0.20 per share
Colony Capital, a global investment management firm, has assets under management of $44 billion. The company manages capital on behalf of its stockholders, as well as institutional and retail investors in private funds, non-traded and traded real estate investment trusts and registered investment companies. The company has significant holdings in the healthcare, industrial and hospitality property sectors; with Colony Credit Real Estate, Inc. and NorthStar Realty Europe Corp., which are both externally managed by subsidiaries of the company, as well as with various other equity and debt investments.
The company is headquartered in Los Angeles with offices in New York, Paris and London, and has more than 400 employees across 17 locations in 10 countries.