LONG BEACH, CALIF. AND CHICAGO — Real estate investment trust HCP Inc. (NYSE: HCP) has named former Jones Lang LaSalle Inc. (JLL) executive Lauralee Martin as its new president and CEO. The REIT, one of the heavyweights in the seniors housing industry, owned $21.8 billion in healthcare assets, including seniors housing, life science, hospital and medical office facilities as of June 30.
Long Beach-based HCP also elected Michael McKee, 67, the company’s lead director, as non-executive chairman. “The board believes Lauralee is the best choice to provide new leadership for the company and to execute its strategies to enhance long-term value for shareholders,” says McKee.
Martin and McKee will replace James Flaherty, who became HCP's chairman and CEO in 2003. In a press release, the REIT stated Flaherty had been terminated, but offered no further details. “Jay was a substantial and successful force behind HCP’s considerable growth for more than a decade, and we wish him continued success,” says McKee. Flaherty will remain a member of the board.
In a move to enhance the governance strength of HCP, the board decided to separate the chairman and CEO roles. “This is a pivotal time of challenges, transitions and consolidation for the healthcare industry both here and abroad, driven by inescapable demographics and changes in the new insurance legal framework,” says Martin.
Martin has served on HCP’s board of directors for five years and has left her position as chief executive of the Americas division of JLL, the Chicago-based global commercial real estate services firm. She is only the third CEO in HCP’s 28-year history and will remain on the board of directors.
Martin joined JLL in 2002 and was appointed to the additional post of chief operating officer in 2005. She gave up her COO responsibilities in January, and later her CFO responsibilities, to become CEO of JLL’s Americas business segment. The giant brokerage firm says president and CEO Colin Dyer will assume direct oversight of JLL’s Americas region following Martin’s departure.
HCP also announced that Kenneth Roath, the company's chairman emeritus and the first president before it went public, plans to step down from the board.From 1988-2003, he was CEO and chairman of the board.
HCP’s stock price closed at $41.77 per share on Wednesday, down from $45.26 a year ago.
— Rachel Goff