"I've been kind of stunned by the number of inquiries that have come from outside the industry," says Zell in Monday's first-quarter earnings conference call.
Callahan, whose most recent reported pay was $5.3 million, resigned for "personal reasons," and was quickly followed by the REIT's top two acquisition executives citing the same explanation.
Zell says the largest US office REIT is looking for a "role model," and not necessarily from within the industry. The next president and chief executive officer should have operational experience, says Zell, adding the REIT's focus is moving away from the multi-billion acquisitions Callahan oversaw in recent years to management of the $11.8-billion company.
"The face and nature of the company is changing," Zell says.
Meanwhile, executive vice president of real estate investments David H. Naus and senior vice president of real estate investments Sybil J. Ellis are receiving severance packages totaling a combined $6.4 million, reports chief operating officer Richard D. Kincaid, with the money being paid out over the first two quarters of 2002. Kincaid adds Callahan's severance package is still being worked out. Their jobs will be eliminated, Zell confirms, with chief investment officer David A. Helfand already overseeing acquisition activity.
Equity Office Properties already was in market for a chief financial officer. The new chief executive officer may have a say-so in that hire, Zell says, assuming he is hired before the CFO. "We are not predicating one on the other," says Zell, 59, who claims to be "having a blast" taking a more hands-on role in the wake of Callahan's departure.
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