Nicholas Schorsch has stepped down as Executive Chairman of American Realty Capital Properties, the firm announced Dec. 15. He also resigned from ARCP’s board and the boards of the non-traded REITs managed by Cole Capital.
William Stanley, Lead Independent Director, will assume the role of Chairman on an interim basis until a replacement can be found. He has also been appointed chairman of ARCP’s nominating and corporate governance committee.
In addition, David Kay has stepped down as ARCP’s CEO and from the Board of Directors. Lisa Beeson has also stepped down as president and COO.
The departures came about seven weeks after ARCP revealed accounting errors that were intentionally concealed, prompting the resignations of the firm’s CFO and chief accounting officer. From Oct 29 through last week, ARCP’s stock has fallen by 27%.
“In connection with Mr. Schorsch’s departure as Executive Chairman, ARCP will be unwinding all of its relationships with entities in which Mr. Schorsch maintains an executive or director-level role or is a significant stockholder,” according to the announcement. “These steps will not only enhance the Company’s corporate governance structure but will also lead to further simplification of its business relationships.”
Other changes at ACRP include:
- Bruce D. Frank has joined the firm’s audit committee and will assume the role of committee chairman; and
- Thomas A. Andruskevich has joined the compensation committee and assumed the role of committee chairman.
Frank and Andruskevich are both independent directors and joined the ARCP Board of Directors in July and February 2014, respectively.
Morgan Stanley will advise the ARCP’s Board of Directors on strategy and capital structure.
