Brookdale Starts Search For New Ceo Following Baier Exit 

After a seven-year tenure as CEO of Brookdale Senior Living (NYSE: BKD), Cindy Baier entered into a separation agreement with the nation’s largest senior living operator and stepped down from her position as of April 13. She also resigned from the Brookdale board of directors.

Brookdale Chairman of the Board Denise W. Warren will serve as interim CEO and is joined by three independent directors on a CEO search committee, supported by executive search firm Spencer Stuart.

“Having executed on our strategy to simplify and streamline the business, rationalize our lease portfolio and address our debt maturities, we believe Brookdale is now poised to deliver sustained and compelling returns to our shareholders,” Warren said in a press release. “With the completion of these actions, the Board determined that now is the right time to identify the Company’s next leader. We are appreciative of the care and services our teams provide for our residents and their families. We are grateful for Cindy’s leadership over the past seven years, and for the role she played leading the Company through the many challenges posed by COVID. On behalf of the Board, I want to thank Cindy for her dedication to and leadership of Brookdale.”

Baier stated, “It has been an honor and a privilege to lead Brookdale and to work alongside the Company’s incredible team. I take pride in what we have accomplished through the resourcefulness and hard work of Brookdale’s associates. I know that Brookdale will continue to be a leader in the industry and a place that senior residents feel at home.”

Brookdale also appointed Mark Fioravanti, president and CEO of Ryman Hospitality Properties, to the board. Frank M. Bumstead will not stand for reelection at the 2025 annual shareholder meeting.

Also, Brookdale is “reviewing potential governance enhancements related to director tenure” and is considering revising executives’ performance-based incentives, according to the release.

The leadership change at Brookdale is taking place after activist shareholder Ortelius Advisors last month nominated six new members to the Brookdale board.

Capitalizing on the value of Brookdale’s owned real estate will be among the areas of focus for the next CEO, the company stated in its press release announcing the C-suite change. Over the years, the question over whether and how to unlock the value of this real estate has been among the issues to consistently crop up for the company, with past activist shareholders pushing for a sale or spin-off of the owned portfolio.

Also on Monday, Brookdale announced that Q1 2025 adjusted EBITDA will exceed internal expectations as well as analysts’ consensus expectations, based on preliminary results. The company also touted that adjusted free cash flow is likely to be positive for Q125, with revenue per available room (RevPAR) also exceeding internal projections.

“These preliminary first quarter results give the Board even more confidence in the robust opportunity that lies ahead for Brookdale,” Warren stated. “Achieving positive Adjusted Free Cash Flow in the first quarter, which has historically been a negative Adjusted Free Cash Flow quarter, is a key milestone and a reflection of the cash flow generation power of the business as weighted average occupancy approaches and exceeds 80%.”

This is a developing story and will be updated.

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