Douglas Elliman has dismissed the president and CEO of its brokerage arm less than a week after the head of the parent company stepped down.
Scott Durkin's employment at Douglas Elliman Realty was terminated on Friday, effective immediately, the parent company said in a one-sentence filing with the Securities & Exchange Commission on Monday. Richard Ferrari, Douglas Elliman’s president and CEO of brokerage for New York City and the Northeast region, was named as his replacement.
“With his impressive background in residential real estate, Richard Ferrari is a proven leader and the right choice to head corporate operations," Michael Liebowitz, the parent company's newly appointed chairman and CEO, said in an emailed statement. "His decades of executive and agent experience will help guide our brokerage, our agents and our staff towards a bright new future and even greater success. I wish Scott Durkin all the best in his future endeavors.”
Liebowitz stepped into his role last week after the resignation of CEO Howard Lorber. The parent company's stock market value declined during his tenure as chairman, president and CEO that started in December 2021. In July, activist shareholder Bradley Tirpak called for the company 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 spokesperson said the company had no additional comment.
Douglas Elliman is working to recover from a deep drop in its market value from more than $900 million in 2021 to about $173 million as of Monday morning.
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.
Durkin became CEO of the brokerage arm in 2021, five years after joining the firm as executive vice president as part of a plan to help it grow a nationwide footprint, according to Durkin's Douglas Elliman biography.
He oversaw expansion in New York, Florida, California, Massachusetts and Texas and a restructuring in Westchester, Connecticut and the Hamptons. The company said he also pushed for "a more streamlined and strategic operations team, bringing together top-tier talent across a range of disciplines including public relations, marketing and technology."
Durkin spent 26 years at The Corcoran Group, founded by Barbara Corcoran in New York in 1973.
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.