Laurence Siegel stepped down on Monday from his role as chief executive officer of the beleaguered Mills Corp. and has taken a seat as the non-executive chairman of the real estate investment trust’s board. Mark Ordan, Mills’ chief operating officer for the past six months, will take over as the company’s ceo and president, effective immediately.
“I look forward to leading The Mills as we pursue the sale of part or all of the company,” said Ordan in a statement.
Siegel has been criticized for his management of the REIT, which remains under investigation by the Securities and Exchange Commission for accounting discrepancies and whose stock price has dropped nearly 70 percent in the past year. He has served as ceo since 1995 and will receive $2.5 million in severance, with an additional $10.5 million if the company is sold by the end of next year. In that regard, Siegel will continue working to close the deal to sell the Meadowlands Xanadu to Kan Am and Colony Capital Acquisitions; if the refinancing and sale are completed, he can choose to partner in the new joint venture.
The New York Stock Exchange has granted The Mills rights to continue trading through Jan. 2 but plans to reevaluate that at the end of October. The Mills’ stock closed at $16.48 on Monday, down from $54.85 a year ago.