HCP Fires Flaherty as CEO, Chairman; Names Jones Lang LaSalle's Martin as CEO

   By Nathalie Tadena 
 

Real estate investment trust HCP Inc. (HCP) fired James Flaherty as its chairman and chief executive after a decade at the company's helm and named Jones Lang LaSalle Inc. (JLL) executive Lauralee Martin as its new CEO.

HCP, which is focused on the healthcare industry, said its board decided to separate the chairman and CEO roles to enhance the company's governance strength and appointed lead director Michael McKee as non-executive chairman.

Mr. Flaherty, who became HCP's CEO in 2003, will remain a member of the board. The reasons for his termination weren't disclosed.

"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," said Mr. McKee, who has been an HCP board member for 26 years. "Jay was a substantial and successful force behind HCP's considerable growth for more than a decade, and we wish him continued success.

Ms. Martin joined Jones Lang LaSalle, a commercial real-estate-services firm, as chief financial officer 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 Jones Lang LaSalle's Americas business segment.

Separately, Jones Lang LaSalle said CEO Colin Dyer will assume direct oversight of the Americas region following Ms. Martin's departure.

HCP--whose investments include senior housing, medical offices and skilled-nursing properties--also said Thursday that Kenneth Roath, the company's chairman emeritus and the first president before it went public, plans to step down from the board.

HCP has generally logged increased revenue in recent periods thanks in part to acquisitions and higher resident fees. In July, the company reported its second-quarter profit rose 5.7% as it posted a bump in sales from its rental segment. However, a key industry metric, funds from operations, grew less than expected for the period.

Shares closed at $41.77 and were inactive premarket. Shares are down 7% over the past three months.

Write to Nathalie Tadena at [e-mail]

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