American Realty Capital Properties, reeling from an accounting misstatement disclosed in October, has announced sweeping changes to its management and corporate governance.
Most notably, CEO David Kay and Executive Chairman Nick Schorsch have both resigned their duties and stepped down from ARCP’s board of directors; COO and president Lisa Beeson has also resigned. The company is also moving to unwind any relationships it has with other businesses or entities where Schorsch plays a management role or is a significant stockholder.
This latest executive reshuffle comes after the resignations of CFO Brian Block and Chief Accounting Officer Lisa McAlister in November. At that time the company disclosed errors in the financial statements for first-quarter 2014 and fiscal 2013 that Block and McAlister allegedly covered up rather than disclose and correct.
William Stanley has been appointed lead independent director and chairman of the nominating and corporate governance committee. Effective immediately, Stanley will also serve as interim CEO and chairman of the board until permanent replacements are found.
ARCP also said Bruce Frank has joined the audit committee and will serve as chairman of the committee immediately; Thomas Andruskevich has joined the compensation committee and assumed the role of chairman there. Both men were already independent directors of ARCP who joined the board earlier in 2014.