Maguire Properties Founder And CEO Removed

May 19, 2008 11:09 a.m. EST

Boston, MA (AHN) - Maguire Properties Inc. said on Monday that its board has removed its founder and CEO Robert Maguire III, who withdrew his bid for the company.

Maguire will now be serving as Chairman Emeritus.

Maguire Properties also confirmed that Robert Maguire, who holds 16.6 percent of the company's stock and who had offered to purchase the firm's majority stake at $21 per share, has withdrawn his proposal.

Nelson Rising, who is a former head of Catellus Development Corp., will replace Maguire as the President and CEO of the Los Angeles real-estate developer.

The Company also suspended quarterly dividend payments to strengthen the company's financial position, pulling shares down by as much as 6.3 percent in New York.

The board named Walter Weisman, who has been serving as a non-executive Vice Chairman and lead independent director since 2006, as the new Chairman of the Board.

Rising's base salary will be $950,000 a year and an annual cash bonus of up to 300 percent of that salary, the company said in its regulatory filing on Monday. Rising will also get 1.5 million restricted stock units.