By A.D. Pruitt
Annaly Capital Management Inc. (NLY), the nation's largest
mortgage real estate investment trust, announced Sunday that its
well-known and respected co-chief executive and co-founder Michael
Farrell has died.
Although Annaly's statement did not specify the cause of death,
Mr. Farrell disclosed in early January that he'd been diagnosed
with cancer and was undergoing chemotherapy treatment. "It is with
profound sadness that we today announce the passing of Michael J.
Farrell, co-founder, chairman and co-CEO of Annaly Capital
Management," said Annaly. "He was a fantastic leader and friend and
will be greatly missed."
Mr. Farrell established Annaly Capital in 1997 and was credited
for successfully steering the company, which invests mainly in
federally-backed mortgage securities, during the economic downturn.
He also came under the spotlight for being one of the highest paid
corporate executives receiving an annual compensation worth $35
million, most of which was a cash bonus.
"I think he was credited with managing Annaly through good times
and in challenging times in the credit markets, especially during
the financial crisis between 2008 and 2010," says Jay Leupp, a
managing director of Lazard Asset Management. "He continued to grow
the company throughout those periods."
Annaly Capital operates more than $100 billion in assets and has
a market capitalization of roughly $16 billion. The stock was down
only 0.75% at $15.98 a share in off-market activity.
"I expect the team at Annaly to continue to carry on the path
Mike set forth, under the leadership of his long-term business
partner Wellington Denahan-Norris, who has been in charge of
managing the portfolio for some time," says Jason Arnold, an
analyst at RBC Capital, in an email.
Ms. Denahan-Norris was named co-chief executive earlier this
month in order for Mr. Farrell to devote more time to his ongoing
treatment for cancer, the company said.
Write to A.D. Pruitt at angela.pruitt@dowjones.com
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