- Richard “Dick” Blum, 78, stepped down as CBRE’s chairman in May 2014 after about 12 years but remains a director and major shareholder.
- Ray Wirta, 70, an experienced real estate executive who will keep his roles at Irvine Co. and Koll Co., was appointed as the new CBRE chairman.
- The leadership change followed an annual shareholder meeting in which all directors were reelected, signaling continuity and board alignment.
- CBRE framed the transition as timely given strong Q1 2014 results, with revenue up 26% to $1.9 billion and non-GAAP profit up about 60% to $82.4 million.
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This leadership change reflects a well-usual pattern in mature, publicly traded real estate services firms where founder/investor-types or long‐standing non-executive chairmen eventually pass the baton while maintaining shareholder oversight. Blum, at age 78, made a move that was publicly framed as timely: the company was achieving strong financials, suggesting confidence in its trajectory and a desire to lock in governance while momentum was high. [1]
Ray Wirta’s selection as chair while retaining his executive positions at other firms (Investment Properties Group at Irvine Co. and CEO of Koll Co.) is notable. It suggests CBRE prioritized experience, industry reputation, and perhaps external relationships over strict CEO-chair separation. This could signal a governance trade-off between oversight and industry network leverage. [3]
Financially, the first quarter of 2014 provided strong backing for the transition: revenue up 26% year-over-year and non-GAAP profit up 60% excluding one-time or ‘‘selected charges’’ [2]. This financial backdrop likely softened investor reaction to the leadership change and provided a strong narrative for succession readiness. [2]
Strategic implications include reinforcing board legitimacy, preparing for longer-term leadership transitions, and possibly positioning the firm for future challenges or expansions. The company showed alignment among shareholders, management, and the board early in 2014, which may have contributed to smooth succession. Open questions remain: how Wirta’s external commitments affect his governance capacity; whether operational oversight would shift; and what this reveals about CBRE’s policy toward board leadership and independence over time.
Supporting Notes
- CBRE Group Inc. said on May 19, 2014 that Richard “Dick” Blum, age 78, stepped down as chairman of the board of directors, but would remain a board member and major shareholder. [1]
- The new chairman is Ray Wirta, age 70, President of the Investment Properties Group at Irvine Co. and CEO of Koll Co.; he retains those positions while serving as CBRE chairman. [1],[3]
- The change took place following CBRE’s annual shareholders’ meeting on Friday, May 16, 2014, during which all directors were reelected. [1],[2]
- Blum had been chairman since September 2001 (or approximately 12 years); he said it was “an opportune time for me to step down… CBRE is in a very strong position, producing record revenues and profits.” [1]
- In Q1 2014, revenue was up ~26% year-over-year to $1.9 billion; excluding selected charges, profit was ~$82.4 million, up ~60% from Q1 2013. [1],[2]
- Blum is founder of Blum Capital Partners (1975), a San Francisco investment management firm acting as general partner in various investment partnerships and providing advisory services. [1],[3]
Sources
- [1] www.latimes.com (Los Angeles Times) — 2014-05-19
- [2] www.malls.com (Malls.com) — 2014-May
- [3] www.rttnews.com (RTTNews) — 2014-05-19