Douglas Elliman CEO Howard Lorber is retiring effective immediately, and the New York-based brokerage has appointed director Michael Liebowitz as his replacement.
Lorber, who served as CEO since 2021, used "strategic vision" to help make Douglas Elliman a premier and innovative brand, the brokerage said in a statement.
The departure of Lorber, 76, "was not due to any disagreement with the company or any matter related to the company's operations, policies or practices," said in a filing with the Securities & Exchange Commission. But the brokerage's stock market value declined during his tenure as chairman, president and CEO in December 2021.
In July, activist shareholder Bradley Tirpak called for the brokerage to launch a search for a new CEO, citing "abysmal stockholder returns." Stories in The Real Deal and New York Times in July suggested Lorber had not properly responded to sexual assault allegations against the firm's brokers during his tenure, not taking necessary action after reports emerged.
A Douglas Elliman spokesperson did not respond to a phone call seeking a comment.
Liebowitz, 55, takes over as new CEO as Douglas Elliman works to rebound from a deep drop in its market value from more than $900 million in 2021 to approximately $146 million as of Wednesday afternoon.
Market Headwinds
The residential real estate market has struggled due to elevated mortgage rates and a lack of supply. The company has faced eight consecutive quarterly losses, but in August it said losses lessened in the second quarter.
Liebowitz, who also assumes the chairman position at Douglas Elliman, said the brokerage has a strong balance sheet and a pipeline of projects in its development marketing business.
"I am confident that Douglas Elliman’s brightest days are ahead," he said in a statement.
An entrepreneur, Liebowitz has served as a Douglas Elliman board member since 2021. He has acquired or started several companies including Harbor Group Consulting and National Financial Partners Corp., Innova Risk Management and High Street Valuations over the past quarter century, according to Douglas Elliman. Liebowitz currently is chairman and CEO of Nocopi Technologies.
He also has advised financial services companies on complex insurance matters and is redeveloping the Mondrian South Beach Hotel in Miami, a property he has owned since 2019.
New York-based Douglas Elliman ranks as the fifth-largest brokerage in the country with $34.4 billion in sales last year, according to industry tracker Real Trends.