Wednesday, December 10, 2008
First National Express, now General Growth Properties
Two board members of General Growth Properties Inc. marched into CEO John Bucksbaum's office to deliver a blunt message: It was time for him to resign. An internal investigation showed that Mr. Bucksbaum's family trust had violated company policy by making private loans to two company officers and failing to inform the board. The departure of Mr. Bucksbaum -- whose father and uncle founded the giant mall owner 54 years ago -- would mark an end to the family's management control of the company. General Growth's stock has plunged more than 97% in the past year, dragging down the Bucksbaum family fortunes with it. The Bucksbaums' 25% ownership stake, worth $3.2 billion just six months ago, is now worth $116 million.