Last Friday, DDR Corp. (DDR) disclosed that Daniel B. Hurwitz left the post of chief executive officer (“CEO”) and director at the company, effective Dec 31. David J. Oakes, the company’s President and Chief Financial Officer, has assumed the position of the company’s principal executive officer following Hurwitz’s resignation.
This comes earlier than expected, because in September, the company had revealed the decision of the Board and Hurwitz to not renew his contract; but he was expected to remain in his position through 2015 to aid in the transition. There was no further reason offered by the company for his early departure. Hurwitz will, however, remain an employee of DDR until Feb 14, 2015. Notably, he has been serving DDR for over 15 years.
As per a filing with the Securities and Exchange Commission, the departure would lead to the recognition of an approximate charge of $4.5 million in the fourth quarter, due to Hurwitz receiving a cash and non-cash stock compensation of around $9.8 million in total. Of the $4.5 million charge, $3.1 million relates to cash compensation and $1.4 million (non-cash) accounts for Mr. Hurwitz’s equity awards.
We believe that DDR has adequate resource to support its growth policy as it navigates through this transition. The company has been following an aggressive capital-recycling program through strategic asset management, which is aimed at reducing currency and development risks, and aid expansion in premium U.S. markets.
DDR currently carries a Zacks Rank #3 (Hold). Investors interested in the retail REITs may consider better-ranked stocks like General Growth Properties, Inc (GGP), Kimco Realty Corporation (KIM) and The Macerich Company (MAC). All these stocks have a Zacks Rank #2 (Buy).
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