Jim Babcock, a co-founder and the former chairman of Babcock & Brown, has resigned his non-executive director post for personal reasons. “He remains a significant shareholder in the company,” the firm said in a statement.
Babcock, who helped found the firm in San Francisco in 1977, resigned as chairman in August and was replaced by Elizabeth Nosworthy. At the same time, Babcock & Brown chief executive Phil Green also resigned from his position as the firm responded to shareholder calls for a management shake up. Following his resignation as chairman, Babcock remained on the board of directors as a non-executive director.
At the time of his resignation, Babcock said that “we heard the market’s desire for us to make governance and strategic changes to better reflect the nature, scale and breadth of Babcock & Brown today compared to the much smaller, highly entrepreneurial company that listed on the Australian Securities Exchange just four years ago, and the changes being announced today have been designed and adopted with this in mind.”
The changes were part of a strategic review process announced in an effort to raise cash and re-focus on its core businesses of infrastructure, real estate and operations leasing. They were aimed at turning around the company’s financial performance after its share prices dropped by about 90 percent in the first eight months of 2008.
“A search to recruit new independent directors for the board is ongoing,” the firm said in a statement.