CommonWealth REIT removes full board of trustees

A special meeting to elect a new board will be called on or before May 23, according to a statement by the Newton, Mass., real estate investment trust.

Mar 25, 2014 @ 8:55 am

+ Zoom

CommonWealth REIT confirmed the removal of its entire board of trustees after receiving written consent from the required two-thirds of shareholders.

A special meeting to elect a new board will be called on or before May 23, according to a statement released Tuesday by the Newton, Mass.,based real estate investment trust.

A campaign for removal of the board was led by investors Corvex Management LP and Related Cos. The New York-based firms have proposed a new slate of board candidates led by billionaire investor Sam Zell and David Helfand, co-president of Zell’s Equity Group Investments.

Corvex and Related, which together own 9.6% of CommonWealth, began their campaign to oust the trustees a year ago. They argued that the ownership of an external management firm by CommonWealth President Adam Portnoy and his father, Barry, a company founder, led to conflicts of interest and underperformance at the real estate investment trust. Both Portnoys have been directors of CommonWealth, which pays fees to the management company.

Corvex and Related said last week they had votes from 81% of shares to remove the board.

Mr. Zell and Mr. Helfand have agreed to serve as CommonWealth’s chairman and chief executive officer, respectively, if they are chosen for the new board.

(Bloomberg News)

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Adviser marketing: 3 strategies for success

To help advisers sift through the noise and execute a marketing plan that will deliver the most ROI, three executives from Carson Group sit down with Shannon Rosic to deliver some strategies you can implement today.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

T. Rowe Price steps up its game to serve financial advisers

The Baltimore-based mutual fund giant is more aggressively targeting financial advisers with a beefed-up wholesale crew and placement on custodial platforms.

The most important tax changes for 2018

The Internal Revenue Service issued inflation adjustments to more than 50 tax provisions for 2018.

Shift to Roth 401(k)s 'highly likely' part of tax reform: former Treasury official Mark Iwry

Mandated contributions to Roth accounts would likely only be partial, as opposed to having a full repeal of pre-tax accounts.

E*Trade acquiring custodian Trust Company of America

Discount broker buying second-tier custodian for $275 million.

Another thousand Dow points higher, and investors yawn

Market milestones keep falling like dominoes, with 51 records broken so far this year.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print