Durkin’s departure was introduced in a SEC submitting on Monday, and got here after reviews emerged concerning the nature of former Elliman CEO Howard Lorber’s retirement, which was allegedly pressured by Elliman’s board.
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This story was up to date after publishing with a remark from Douglas Elliman’s Michael Liebowitz, and with further context.
Scott Durkin has been terminated as president and CEO of Douglas Elliman’s brokerage section, in keeping with a submitting made with the Securities and Change Fee (SEC) on Monday.
The submitting specifies that Durkin was terminated on Friday, along with his departure efficient instantly, a transfer that comes simply days after Elliman chairman of the board, CEO and president Howard Lorber introduced his retirement.
The New York Occasions reported that Richard Ferrari, who had been head of brokerage operations in New York Metropolis and the Northeast, might be taking on for Durkin. Michael Liebowitz, Elliman’s new chairman and CEO of Douglas Elliman Inc., advised brokers in an inside electronic mail that Durkin was “stepping down … in order to pursue new opportunities,” in keeping with The Actual Deal.
Liebowitz wished Durkin “all the best in his future endeavors” in a press release despatched to Inman.
“With his impressive background in residential real estate, Richard Ferrari is a proven leader and the right choice to head corporate operations,” Liebowitz mentioned in a press release. “His decades of executive and agent experience will help guide our brokerage, our agents and our staff towards a bright new future and even greater success.”
When Lorber’s departure was introduced final week, the transfer was characterised as a easy retirement. Nevertheless, some vocal Elliman shareholders had beforehand expressed their discontent with Lorber’s efficiency, because the agency confronted about two years of losses and a dropping inventory worth, in addition to elevated scrutiny over beforehand long-time brokers Tal and Oren Alexander, who had been named in a number of lawsuits alleging sexual assault.
The Wall Road Journal additionally reported on Sunday that Lorber had the truth is been pressured by the corporate’s board to resign as considerations about office tradition mounted.
A particular committee had been fashioned by the board in current weeks to research the agency’s tradition and accusations of sexual assault made by staff in opposition to the Alexander brothers, in keeping with The WSJ’s sources.
Each Elliman and the Alexanders have beforehand asserted that no formal human assets complaints had ever been filed in opposition to the Alexanders throughout their time on the agency. (The left in 2022 after being affiliated with Elliman for about 10 years as a way to launch Official.)
The particular committee investigation, in keeping with The WSJ, was the second inside evaluation the agency had carried out in current months after an earlier one carried out by legal professional Marc Kasowitz, who has represented Elliman through the years, was decided by the board to not be sufficient. A significant concern on the board’s half was that Kasowitz and Lorber have been maybe too shut for the evaluation to be neutral, and along with representing Elliman in sure issues, Kasowitz had additionally represented a tobacco firm that Lorber led prior to now.
“As longtime litigation counsel to Douglas Elliman, our firm was preparing to defend the company against potential claims,” Kasowitz mentioned in a press release despatched to The WSJ. “Any suggestion that in doing so we would be less aggressive or effective in finding out the true facts because of our longtime business and personal relationship with Mr. Lorber makes no sense and is the exact opposite of the truth.”
David Chene, who joined Elliman’s board lately with Kennedy Lewis’ funding of $50 million into the corporate, led the particular committee, in keeping with sources. It’s unclear what findings got here out of that committee’s investigation.
Durkin joined Douglas Elliman in 2015 as govt vice chairman after spending about 20 years on the Corcoran Group. He was named president in 2017, after which CEO of the brokerage arm proper earlier than Elliman spun off from former dad or mum firm Vector Group in 2021. Lorber had additionally served as Vector’s CEO and president till he offered the corporate to JT Group, a deal which closed earlier this month.
Amidst its losses, Elliman has labored to decrease prices, together with by means of shedding staff, reducing company sponsorships and terminating workplace leases. The corporate additionally lately introduced it will sundown an settlement with Vector Group, which allowed it to lease Vector’s personal plane on a per-flight foundation.
Durkin’s bonus additionally took successful final 12 months, amounting to $250,000, lower than half of what he had earned the earlier 12 months, in keeping with SEC filings. He wage stayed the identical because it was in 2022.
The brokerage exec was promoted to CEO in 2021 when Dottie Herman stepped down from the function. Herman now serves in an advisory function on the brokerage.
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