Summary
Digital Realty Trust, Inc. (DLR) announced a significant leadership transition on December 13, 2022, with the immediate appointment of Andrew P. Power as the new Chief Executive Officer. Mr. Power, previously the President and Chief Financial Officer, will also join the Board of Directors. This change coincides with the termination of A. William Stein as CEO, without cause. Mr. Stein will remain with the company in an employee capacity until December 31, 2022, and will receive a separation payment of approximately $10.7 million, with the company expecting to record a one-time charge of about $15 million in Q4 2022. Importantly, this charge is not expected to impact the company's Core FFO per share guidance for 2022. Mr. Power brings extensive experience to his new role, having served as CFO since 2015 and President since November 2021, overseeing critical aspects of the company's global operations and financial functions. His background in investment banking, including advising on DLR's IPO, positions him well for leading the company. He will continue to serve as President and CFO until a successor CFO is appointed. Investors should note this leadership change as a key event, with the company emphasizing that the separation costs are not expected to affect core financial performance metrics.
Key Highlights
- 1Andrew P. Power appointed as new Chief Executive Officer, effective immediately.
- 2Andrew P. Power also appointed as a member of the Board of Directors.
- 3A. William Stein terminated as CEO without cause; will remain an employee until December 31, 2022.
- 4Mr. Stein to receive approximately $10.7 million in separation payments.
- 5Company anticipates a one-time charge of approximately $15 million in Q4 2022 related to Mr. Stein's separation.
- 6Separation costs excluded from Core FFO per share; no impact expected on 2022 guidance.
- 7Mr. Power to continue as President and CFO until a successor CFO is appointed.