Douglas Elliman fires brokerage CEO
Scott Durkin, who led Douglas Elliman Realty, was terminated just days after the CEO of its parent company stepped down.
Key points:
- In what appears to be a larger leadership shakeup, Durkin’s termination was revealed through an SEC filing on October 25.
- Four days earlier, longtime Douglas Elliman CEO Howard Lorber announced his immediate retirement.
- The company’s head of New York sales will take over Durkin’s position as CEO of the brokerage.
Douglas Elliman has announced another major change in leadership, this time the departure of brokerage CEO Scott Durkin, the New York Times reported. The news comes just days after the abrupt retirement of Howard Lorber, the longtime CEO of the New York-based firm's parent company.
While some have questioned the timing of Lorber's retirement, he appeared to depart on good terms. In a news release, the company publicly thanked him for his service, and in an SEC filing specified that the decision was "not due to any disagreement with the Company on any matter relating to the Company's operations, policies or practices."
Durkin forced out: The announcement of Durkin's exit, however, left no room for interpretation. In a separate SEC filing, Douglas Elliman stated that Durkin was "terminated, effectively immediately," on October 25, just four days after Lorber "notified the Board of Directors of Douglas Elliman Inc. of his resignation" as chairman, CEO and president of the company.
Durkin joined Elliman in 2015 and quickly rose through the ranks, receiving promotions to chief operating officer in 2016 and president in 2017. He was "hand-selected" for the CEO role in 2021 by Lorber and Dottie Herman, Elliman's previous CEO and Durkin's "friend and mentor."
Elliman veteran to lead brokerage division: According to the New York Times, Richard Ferrari, who managed the brokerage's sales and operations in New York and the broader Northeast territory, will take over Durkin's role as CEO of Douglas Elliman Realty. Ferrari's bio on the Douglas Elliman site indicates that he has been active in real estate sales for 30 years and has been with the brokerage for 15 years.
Investors signal cautious approval: The leadership changes at Douglas Elliman appear to have pleased investors — the company's stock price has improved nearly 35% in the last five days and is approaching $2 per share. Still, the share price is down over 32% year-to-date and more than 82% over the last five years alongside declining revenue. The company's April 29 settlement in the commissions cases contributed to its recent losses.
In addition to its financial woes, Elliman has also faced scrutiny over its handling of 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.