Douglas Elliman CEO resigns as company faces multiple challenges
Longtime CEO Howard Lorber announced his retirement from the company as board member and entrepreneur Michael Liebowitz takes over the top spot.
Howard M. Lorber, the 76-year-old CEO of luxury brokerage Douglas Elliman announced his resignation this week after 20 years in an executive leadership role with the New York-based company.
Michael Liebowitz, who has been a member of Elliman's board since 2021, will take over as CEO and Chairman. The news comes as the company has faced scrutiny for its handling of a sexual assault scandal and diminishing stock prices.
What Douglas Elliman said: In a press release, the company thanked Lorber for his time at the company but also highlighted Liebowitz's professional track record and skill set from the financial and insurance industries.
"Douglas Elliman extends its deepest appreciation to Mr. Lorber for his strategic vision and years of dedication and hard work that have made Douglas Elliman the country's premier real estate brokerage firm, setting new standards in luxury service and innovation," the company said about Lorber.
Additionally, in an SEC filing, the company said that Lorber's resignation was "not due to any disagreement with the Company on any matter relating to the Company's operations, policies or practices."
What Liebowitz said: Douglas Elliman detailed Liebowitz's extensive career, which spans consulting, tech, finance, insurance and real estate. He most recently served as CEO of the Harbor Group Division of Alliant. Liebowitz, the company noted, has founded and acquired multiple businesses and is currently redeveloping a hotel in Miami. Tapping that new construction pipeline, Liebowitz said, will help the company grow its bottom line.
"With a strong balance sheet, robust pipeline of projects in our development marketing business, and the competitive advantages provided by our dedicated team of world-class agents, I am confident that Douglas Elliman's brightest days are ahead," he said, adding that his efforts are aimed at "maximizing shareholder value."
Stock price in a slump: Douglas Elliman's current $1.63 stock price is down roughly 44% year-to-date and down 85% over the last five years. Like other major brokerages, the company has been fighting a multifront battle against a sluggish residential real estate market and a series of class action lawsuits that have embroiled the industry in legal wrangling over the last couple of years.
A $17.75 million agreement the company entered into in April to settle cases brought by home sellers took a big bite out of its profits.
But the company has also faced scrutiny over its handling over sexual assault claims against star brokers Oren and Tal Alexander. The Real Deal reported this summer that upwards of 30 victims have come forward with claims against the brothers after a pair of lawsuits were filed alleging sexual assaults of two women in 2010 and 2012 when the brothers were with Douglas Elliman.