The only thing surprising about the “sudden” announcement that Lauralee Martin stepped down as CEO of HCP, Inc. was that the effective date of her departure was also the announcement date. Now, we don’t want to read too many tea leaves into the situation, but remember that she came into the CEO position from the Board nearly three years ago in a tumultuous dumping of the previous CEO. She already had a top job at another real estate company and didn’t really need the aggravation. But she steered the REIT through another tumultuous period with, first the two lease adjustments, and then the in-process spin-off of the $6 billion HCR ManorCare portfolio. Even though internally this process may have begun a few months ago, when Board member Michael McKee became executive chairman, a company is usually a bit more gracious when a CEO departs on good terms, allowing time for the “transition,” whatever that may be. They have already started a search for a permanent CEO, but have at least two qualified people on the bench, so it would have made more sense to announce her departure with the news of the known, and expected, replacement. But now the REIT will have to go through a few more months of uncertainty while the spin-off is in process. Investors like certainty, and they like stability, and this is the wrong way to go about it. Unless, or course, Lauralee was fired.
Continued Uncertainty At HCP
Lauralee Martin is out as CEO, but who will be in remains a mystery.
