Federal's CEO Makes Premature Exit

ROCKVILLE, MD-Changes will usher in the new year at Federal Realty Investment Trust as longtime Board of Trustees chairman and CEO Steven J. Guttman makes his exit from the company two months earlier than planned. Federal’s board officials have appointed Donald C. Wood to be president, a board member, and CEO of the company, while Mark S. Ordan will serve as non-executive chairman of the Board of Trustees. The executive transitions, originally planned to take place in March 2003, are to be effective starting Jan. 3.

“I have accelerated my planned resignation to devote myself full time to the pursuit of personal and other business interests,” Guttman explains of his premature departure. He joined Federal about 30 years ago and became CEO 20 years ago. Along with the executive changes comes a multi-million loss for the REIT. Federal will see a 2002 charge to earnings of approximately $14 million–the amount that will go to Guttman as a result of his contract with the company.