Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Leon Black leaves Apollo executive roles after Epstein investigation

Stock MarketsMar 22, 2021 04:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. Jay Clayton, Chairman of the U.S. Securities and Exchange Commission, speaks at the Economic Club of New York luncheon in New York City 2/2

By Chibuike Oguh and Noor Zainab Hussain

(Reuters) - Apollo Global Management (NYSE:APO) Inc co-founder Leon Black has left his executive positions at the private equity firm, a surprise move that caps a series of corporate governance changes triggered by a review of his ties to late financier and convicted sex offender Jeffrey Epstein.

Black, who co-founded Apollo 31 years ago, stepped down as the company's chairman, with Jay Clayton, former U.S. Securities and Exchange Commission chief, taking over as non-executive chairman, according to a statement on Monday.

Black, 69, had planned to retain his role as chairman after relinquishing his post as chief executive officer in January following an independent review by law firm Dechert, which revealed that he had paid Epstein $158 million for advice on tax and estate planning and related services between 2012 and 2017. The review had cleared Black of any wrongdoing.

Apollo's stock price rose 4.5% to close at $49.42 per share after Black's departure was announced.

"The relentless public attention and media scrutiny concerning my relationship with Jeffrey Epstein - even though the exhaustive Dechert report concluded there was no evidence of wrongdoing on my part — have taken a toll on my health and have caused me to wish to take some time away from the public spotlight that comes with my daily involvement with this great public company," Black said in a letter to Apollo's board of directors.

Epstein was found dead at age 66 in August 2019 in a Manhattan jail, while awaiting trial on sex trafficking charges for allegedly abusing dozens of underage girls in Manhattan and Florida from 2002 to 2005. New York City's chief medical examiner ruled the cause of death was suicide by hanging.

Apollo said on Monday that co-founder Marc Rowan will formally take over as CEO after being named as Black's successor in January. Two new independent directors, Richard Emerson (NYSE:EMR) and Kerry Murphy Healey, were also added to Apollo's board.

New York-based Apollo had appointed Clayton, 54, who was SEC chairman from May 2017 to December 2020, as lead independent director in February to improve corporate governance after the review.

"I think it was appropriate that once Black left as CEO he also leave as chairman," said Charles Elson, a corporate governance expert and finance professor at the University of Delaware. "If they wanted to remove affiliation, it wouldn't have made any sense if he remained as executive chairman overseeing the board."

On Monday, Citigroup (NYSE:C) analysts upgraded Apollo's rating to "Buy" from "Neutral," citing a sharp reduction in risks associated with investigations into Black's personal relationship with Epstein.

Black was subpoenaed last year by U.S. Virgin Islands Attorney General Denise George as part of a lawsuit against Epstein's estate seeking civil penalties and the forfeiture of assets including two private islands on which he allegedly raped and trafficked girls and young women.

Black has said he intends to cooperate with the inquiry as well as any other investigation.

Earlier this month, Apollo announced it would merge with Athene Holding (NYSE:ATH) Ltd in an $11 billion all-stock deal, bringing in-house an annuities provider that helped turn it into one of the world's largest corporate credit investors.

"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," Black said in a statement on Monday.

"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," he added.

Black said he will remain Apollo's single largest shareholder and hopes to return to the company at some point.

Leon Black leaves Apollo executive roles after Epstein investigation
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
ELLIOT MILLER
ELLIOT MILLER Mar 22, 2021 3:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If Leon Black did nothing inappropriate it is regrettable that he felt pressured to resign. On the other hand the amount he paid Epstein for advice over six years seems excessive but again, that's not cause for his resignation.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email