Leon Black to Step Down as C.E.O. of Apollo

After Apollo received the results of the Dechert review, Joshua Harris, the company’s third co-founder, sought a quicker departure for Mr. Black. At that time, however, Mr. Harris was overruled by Mr. Black and Mr. Rowan, the other two members of the Company’s Executive Committee. Although Mr. Rowan and other senior Apollo executives were mentioned in the letter Mr. Black sent to the board on Monday, Mr. Harris was not.

Even after the succession plan and other corporate governance changes were announced, the matter of Mr. Black’s dealings with Mr. Epstein cast a long shadow. Many investors had been reassured by the changes, but some, like the California Public Employees’ Retirement System, offered cautious assistance. The appointment of Mr. Clayton as the newly created independent director in February was seen as a means to calm investors’ nerves.

During Apollo’s recent earnings call, Rowan said a small number of Apollo’s 1,500 pension, sovereign wealth and other institutional investors were still considering the company’s response to the situation.

Mr. Black’s dealings with Mr. Epstein aroused strong emotions outside of Apollo as well. At Dartmouth College, where Mr. Black was a student, requests were made to remove his family name from an on-campus visual arts center.

And some artists have called for Mr. Black, whose vast art collection is valued at an estimated $ 1 billion, to be ousted as chairman of the Museum of Modern Art, where he is a major donor. His term as chairman expires this summer and he has been under pressure not to seek someone else. The museum’s board of directors is expected to hold its next regular meeting on March 30th.

Mr Black said in the Apollo Statement that he would be leaving the company in a strong position and that his quarterly results would exceed expectations. He said this was “an ideal time to step back and focus on my family, my wife Debra’s problems and my health, and my many other interests.”

In his letter to the board of directors, Mr. Black said, “I hope I can return sometime.” He noted that he remains the company’s greatest shareholder and supporter.

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