The Leon Black leadership era at the company that holds a majority stake in Cox Media Group has abruptly come to an end.
Nearly eight weeks after a Apollo Global Management “Conflicts Committee” and its board of directors completed a previously announced independent review of its Chairman and CEO’s previous professional relationship with Jeffrey Epstein — the convicted sex offender tied to the trafficking of minors who died in prison, Black has officially abdicated the top role at Apollo.
It comes several months ahead of the transition plan released in January.
Black was one of Epstein’s key clients, and that relationship proved costly, as Black ended up a little too close to one of the most infamous American financiers of the modern era.
As such, following an investigation conducted by Dechert LLP, Black planned to retire as CEO on or before July 31 while continuing as Apollo’s Chairman.
On Monday (3/22), that transition arrangement evolved, as Apollo Global Management co-founder Marc Rowan formally assumed the role of CEO.
In a statement, Apollo said Rowan’s ascension to the top spot “comes as part of a planned succession process first announced in January 2021.”
That’s true, but omits a key fact: Apollo pulled the trigger on naming Rowan its chief executive 19 weeks before he was to take the position.
Meanwhile, Apollo soft-played the other big change in plan for Black: He will not be continuing as Apollo’s Chairman. As such, he’s not only stepping down with immediate effect, but he’ll no longer have any role with Apollo.
Effective immediately, Apollo’s Lead Independent Director — former SEC Chairman Jay Clayton — has been named Non-Executive Chairman of the Board of Directors.
Why was the timetable accelerated for Black’s move out of the CEO spot? Why will he no longer continue as Board Chairman?
Black noted, “In the last few months, not only did we announce a transformative merger with Athene, but also expect to report that our first quarter earnings will exceed analyst consensus in all relevant measures and that the first quarter fundraising is trending towards the high end of our $15 billion-$20 billion annual range. I thus view this as the ideal moment to step back and focus on my family, my wife Debra’s and my health issues, and my many other interests.”
Concurrent to Clayton’s naming as board chairman and Rowan’s premature rise to Apollo’s No. 1 role, now serving as independent board members are Pendral Capital President Richard Emerson and Dr. Kerry Murphy Healey.
Healey is the inaugural president of the Milken Center for Advancing the American Dream in Washington, D.C., and served as President of Babson College from 2013-2019.
“I am extremely pleased that we have filled out the two-thirds independent board with such highly-qualified, diverse individuals,” Black said.
This is tied to the expansion of Apollo’s board to 15 members, with two-thirds of the board members independent.
A COMMITTED EQUITY HOLDER
While Black’s days directing Apollo are over, he’ll still hold some sway.
“I intend to remain Apollo’s largest shareholder, and strongest supporter,” he said, adding that Rowan “has seamlessly transitioned into the CEO role,” and that he’s confident Apollo will soar to new heights under his leadership.
Rowan added, “Leon has been a terrific partner and leader for over three decades and I am honored to take the reins. At Apollo, we have created a differentiated model and built the best team in the business to lead within an evolving, high-growth asset management industry. I am excited by the opportunities ahead and by our strategy to continue to deliver for our clients and investors.”
Meanwhile, Apollo believes the “corporate governance enhancements” further its commitment “to establishing a simpler, more transparent corporate structure and once complete, are expected to make Apollo eligible for inclusion on the S&P 500.”
Apollo, under the “APO” symbol, trades on the NYSE and as of 11:49am Eastern on Monday was priced at $48.53, up 2.8% from Friday.
Cox Enterprises Inc. on Dec. 17, 2019 completed the sale of its portfolio of television and radio stations, Ohio assets and its affiliated CoxReps and Gamut national advertising businesses to a new media company that is majority-owned by private equity funds managed by affiliates of Apollo Global Management. Cox Enterprises maintains a minority stake in the new company, which will include the former Brian Brady-owned Northwest Broadcasting and continues to operate under the name Cox Media Group, with its headquarters in Atlanta. Since then, several key industry leaders have either exited or retired from the company, including former CEO Kim Guthrie and EVP of Radio Bill Hendrich.
