The world's largest commercial real estate brokerage firm is changing the leadership of two of its business segments in a move aimed at streamlining operations and finding savings as services firms are cutting costs.
CBRE Group said Friday that Vikram Kohli, the firm's chief operating officer, will assume direct oversight of advisory services and global workplace solutions, the brokerage's two real estate services segments. Advisory services typically include leasing, sales, debt and structured finance, valuation and property management.
The move by Dallas-based CBRE reflects Kohli's rising stock at the real estate services firm, according to multiple industry professionals.
The new leadership structure also combines two significant divisions at the brokerage firm. The advisory services group has grappled with a changing business climate in the past year-and-a-half with capital market woes hitting CBRE's bottom line.
The drop-off in transactions across the globe last year prompted CBRE and other larger brokerages to take some cost-cutting initiatives.
CBRE's global workplace solutions division, in contrast, has shown gains as the brokerage pivots into long-term management contracts.
"Our advisory and GWS segments, both of which lead their respective sectors globally, will be more connected, leaner and better positioned to deliver superior integrated client solutions under his leadership," CBRE Chairman and CEO Bob Sulentic said in a statement about Kohli's expanded leadership role.
Kohli joined CBRE in its India brokerage business in 2001. In the past two decades, he "excelled in key roles across multiple geographies" as a "compelling leader" with an exceptional level of strategic, financial and digital capability, Sulentic said.
Group CEO Position Cut
A CBRE spokesperson confirmed that the expansion of Kohli's leadership role will eliminate the position of CEO of the firm's global workplace solutions business. The two business segments will continue to operate as independent divisions of CBRE.
Chandra Dhandapani, who has served as CEO of the global workplace solutions business, is expected to transition her responsibilities to Kohli and leave CBRE in September. The remaining leaders within the business unit will report to Kohli.
In a termination letter filed with the Securities and Exchange Commission late Friday, CBRE outlined plans to pay Dhandapani more than $3.5 million in severance, bonus payment and wages upon the planned separation date of Sept. 8. She would also receive a total of 86,804 shares of CBRE stock through the firm's various incentive programs.
Dhandapani is also bound by certain restrictive covenants, including noncompetition and nonsolicitation agreements, for a period following her separation from CBRE agreed to in her employment contract from March 2022. The restrictive covenants expire after one year, a CBRE spokesperson told CoStar News.
In 2022, Dhandapani earned a total compensation of about $5 million, according to CBRE's 2023 proxy statement, the latest one available. She ranked as CBRE's fifth highest-paid named executive officer in 2022.
The firm declined to comment to CoStar News beyond its announcement. Kohli was not immediately available for an interview with CoStar News.
The senior executives responsible for leading the advisory services and global workplace solutions businesses will report to Kohli, who also will continue to oversee the leaders of CBRE's digital and technology and research teams. The new leadership group is charged with working together to "align them more closely from both client-facing and cost efficiency perspectives," according to CBRE's announcement.
Jack Durburg, who served as CEO of the firm's advisory services business, will now exclusively lead the U.S. and Canada advisory businesses. Chris Kirk, who was advisory's chief operating officer, will lead the international advisory business. Durburg and Kirk will report to Kohli.
Regarding Dhandapani's pending departure from the firm, Sulentic said, "Chandra has made notable contributions in a variety of leadership roles over the past eight years, from significantly upgrading the talent of our digital and technology team to advancing our capabilities in serving GWS occupier clients."