Home builder Standard Pacific, based in Orange County, has announced that CEO Steven Scarborough will be retiring, effectively immediately. The imperiled builder, which reported losses of $767 million last year, will be temporarily led by a member of the board of directors. From the Lansner on Real Estate blog at the Orange County Register:
The longtime chairman and CEO of Standard Pacific Corp. has retired — effective immediately — with a member of the board taking over the reins of the Irvine-based homebuilder in the midst of a housing slump that threatens the survival of many development firms.
Stephen J. Scarborough, the highest paid Orange County executive in 2004, is leaving the company after 27 years. He is being replaced by Jeffrey Peterson, a board member since 2001 and a former managing director at Trust Company of the West and Kidder, Peabody & Co.
In a conference call, Peterson declined to say whether the company is contemplating the filing of bankruptcy or to explain why Scarborough abruptly retired after seven years at the helm...
Although Peterson said the board has ordered management to act with “a sense of urgency,” company officials declined to say what, if any, conditions have changed to make such urgency necessary. Management could not have done a better job in addressing the challenges of the housing slump, said company chief financial officer Andy Parnes. But Parnes and Peterson would not say if conditions for Standard Pacific have deteriorated.
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