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February 3, 2012

Forest City Enterprises, long a family-controlled corporation, to shift to a majority of independent directors; also, new plans to sell land, change corporate focus

Atlantic Yards Report

Forest City Enterprises (FCE), parent of Brooklyn developer Forest City Ratner, is making some changes.

It has decided to sell its land band business to focus on "core rental products - apartments, office and retail properties" in core markets (including New York), and also to divest itself from properties in non-core markets.

Also, long controlled by some interlocking families, namely the Ratners, FCE is shifting its board to a majority of independent directors, rather than family members.

That may be an effort to enhance credibility in the marketplace, but even independent directors are not necessarily corporate watchdogs, as history has proven again and again. FCE public board meetings, at least according to webcasts, show a clubby, go-along atmosphere.

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FCE Press Release, Forest City Announces Governance Actions

Posted by eric at February 3, 2012 1:11 PM