Three Brixmor Executives, Including CEO, Resign After Audit

Brixmor Property Group Inc. Chief Executive Officer Michael Carroll and two other executives resigned, effective immediately, after an audit committee discovered that employees were “smoothing” income to make quarterly net operating income more consistent.

The New York-based owner of shopping centers named Daniel Hurwitz, former CEO of DDR Corp., as interim chief executive officer. He will also be appointed to the company’s board of directors, Brixmor said in a statement on Monday.

“The board is disappointed to have learned of the conduct and lack of appropriate management supervision,” board chairman John Schreiber said in the statement. “Once the facts were known, we moved swiftly to take remedial action. We are fortunate to be able to bring in a seasoned real estate executive of Dan Hurwitz’s caliber, who can lead the company through this period and effectively manage our portfolio as we move to identify a new CEO and CFO.”

Also resigning were Chief Financial Officer Michael Pappagallo and Chief Accounting Officer Steven Splain, along with an unidentified accounting employee.

Brixmor said it doesn’t expect to have to restate its historical financial results.