Newmark's Executive Chairman Howard W. Lutnick Nominated for U.S. Secretary of Commerce

Rhea-AI Summary

Newmark Group (NMRK) announced that Executive Chairman Howard W. Lutnick has been nominated by President Donald J. Trump to serve as the 41st U.S. Secretary of Commerce. Upon Senate confirmation, Lutnick will step down from his positions at Cantor, BGC, and Newmark, and divest his interests in these companies to comply with government ethics rules. The divestment is not expected to involve open market share sales. Barry Gosin will continue as CEO, with no changes expected to Newmark's existing corporate structure.

Positive

• Planned orderly transition of leadership with CEO Barry Gosin remaining in place
• Divestment process structured to avoid open market share sales, potentially preventing stock price pressure

Negative

• Loss of Executive Chairman Howard W. Lutnick's leadership and strategic oversight
• Uncertainty regarding the impact of leadership transition on company operations
• Potential impact of significant insider share divestment on stock ownership structure

Insights

Legal Expert

This nomination, while prestigious, introduces uncertainty for Newmark. The planned divestment of Lutnick's interests, particularly if executed rapidly to meet government ethics requirements, could create temporary pressure on the stock price. However, the commitment to avoid open market sales suggests a more controlled transition that could minimize market disruption.

The continuity of leadership under CEO Barry Gosin and the existing management team provides stability. The company's explicit statement about maintaining its corporate structure further reinforces operational continuity. Yet, the loss of Lutnick's strategic oversight and industry relationships, built over decades, may impact long-term strategic direction and key business relationships.

NEW YORK, Nov. 21, 2024 /PRNewswire/ -- Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark") Executive Chairman Howard W. Lutnick provided the following statement:

"I am deeply honored to have been nominated by President Donald J. Trump to serve as the 41st U.S. Secretary of Commerce. I look forward to this new chapter in my life, working for President Trump to promote economic growth, drive innovation, and strengthen our nation's financial security. 

Upon U.S. Senate confirmation, I will step down from my positions at Cantor, BGC, and Newmark. I intend to divest my interests in these companies to comply with U.S. government ethics rules and do not expect any arrangement which involves selling shares on the open market.

I have full confidence in the leadership of Barry Gosin, Newmark's Chief Executive Officer, and our exceptional management team to continue to drive the success of the company, upholding the best interests of Newmark's clients, investors, and employees."

Newmark expects no changes to its existing corporate structure and expects to disclose further details at a later date.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended September 30, 2024, Newmark generated revenues of approximately $2.6 billion. As of that same date, Newmark's company-owned offices, together with its business partners, operated from nearly 170 offices with more than 7,800 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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SOURCE Newmark Group, Inc.

FAQ

What position was Newmark's (NMRK) Howard Lutnick nominated for in November 2024?

Howard W. Lutnick was nominated by President Donald J. Trump to serve as the 41st U.S. Secretary of Commerce.

How will Howard Lutnick's nomination affect his role at Newmark (NMRK)?

Upon Senate confirmation, Lutnick will step down from his positions at Newmark and divest his interests in the company to comply with government ethics rules.

Who will lead Newmark (NMRK) after Lutnick's departure?

Barry Gosin will continue as Newmark's Chief Executive Officer, leading the company with the existing management team.

Will Lutnick's divestment involve selling Newmark (NMRK) shares on the open market?

No, according to the announcement, Lutnick does not expect any arrangement which involves selling shares on the open market.