Since the merger, Cali has held the chairman's post, with Mack Co. founder William Mack one step down as chairman of the executive committee. With Cali, 81, stepping down, Mack is expected to take over as chairman of the board. A date for the transfer of power is expected to be set "within the next few weeks," according to a company spokesperson.
Additional executive changes "could take place soon," according to Cali. "Whatever happens will be for the good of Mack-Cali." One change that's unlikely to happen is in the day-to-day operation of the company. Mitch Hersh, a former Mack Co. partner, became CEO early last year, is expected to retain that position. One change that is expected to occur is that Cali's son Brant isn't expected to have his term as a board member renewed.
Bill Mack, incidentally, is the company's largest single shareholder with 4,465,701 shares, and the Mack family altogether controls about 16.3% of outstanding shares (the Cali family owns about 3% of outstanding shares). And like many REITs, Mack-Cali has experienced a slump in its stock since the merger, something which most Wall Street observers attribute to investors' love affair with the mercurial tech stocks.
Since the merger, there have been rumors of friction between the two families, but Cali refutes the suggestion. "There isn't any war going on," he says. "We have a very good relationship, and everything that is going on is ultimately for the betterment of the company."
In any case, Mack-Cali is expected to continue to be a major player in NJ real estate. Indeed, the company has had a very active spring and summer with a number of major transactions tied to its corporate philosophy of shedding properties with low growth potential and reinvesting the cash in properties that figure to help the portfolio.
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