NEW YORK, Nov. 25, 2014 /PRNewswire/ -- Harbinger Group Inc. ("HGI" or the "Company";NYSE: HRG) today announced that Philip Falcone, HGI's Chief Executive Officer and Chairman of the board of directors (the "Board") will, effective December 1, 2014, resign from his positions with the Company. Joseph S. Steinberg, an independent member of the Board, will become Chairman of the Board. HGI will name a Chief Executive Officer upon the completion of a search process.
Mr. Steinberg, the incoming Board Chairman, commented that, "During Mr. Falcone's tenure as Chairman and Chief Executive Officer, the Company experienced significant growth and success, beginning as a company with approximately $140 million market capitalization in 2009 rising to today's market capitalization of approximately $2.6 billion. We thank Phil for his many years of hard work and leading HGI."
Simultaneously with Mr. Falcone's resignation, Mr. Keith Hladek, an HGI director, will also resign from the Board. Mr. Falcone and Mr. Hladek are expected to dedicate their efforts to HC2 Holdings, Inc. and Harbinger Capital Partners, LLC. In connection with his resignation, the Company will pay Mr. Falcone a lump sum payment consisting of $20,500,000 one-time payment, $16,500,000 in respect of Mr. Falcone's previously earned and awarded annual bonus for fiscal year 2014 and $3,300,000 as a pro-rata bonus for fiscal year 2015. In addition, the warrants to acquire common stock of HGI that were previously awarded to Mr. Falcone will continue to vest in accordance with their existing vesting schedule.
About Harbinger Group Inc.
Harbinger Group Inc. is a diversified holding company. HGI's principal operations are conducted through companies that: offer life insurance and annuity products; offer branded consumer products (such as consumer batteries, residential locksets, residential builders' hardware, faucets, shaving and grooming products, personal care products, small household appliances, specialty pet supplies, lawn, garden and home pest control products, and personal insect repellents); provide asset management services, including asset-backed loans, high-yield investing, infrastructure lending and real estate investing; and own energy assets. HGI is principally focused on acquiring controlling and other equity stakes in businesses across a diversified range of industries and growing its existing businesses. In addition to HGI's intention to acquire controlling equity interests, HGI may also make investments in debt instruments and acquire minority equity interests in companies. HGI is headquartered in New York and traded on the New York Stock Exchange under the symbol HRG. For more information on HGI, visit: www.harbingergroupinc.com.
Forward Looking Statements
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: This release contains, and certain oral statements made by our representatives from time to time may contain, forward-looking statements. These statements are based on the beliefs and assumptions of HGI's management and the management of HGI's subsidiaries (including target businesses). Generally, forward-looking statements include information describing actions, events, results, strategies and expectations and are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans," "seeks," "estimates," "projects," "may," "will," "could," "might," or "continues" or similar expressions. Factors that could cause actual results, events and developments to differ include, without limitation, capital market conditions, the ability of HGI's subsidiaries (including, target businesses following their acquisition) to generate sufficient net income and cash flows to make upstream cash distributions, HGI and its subsidiaries ability to identify any suitable future acquisition opportunities, efficiencies/cost avoidance, cost savings, income and margins, growth, economies of scale, combined operations, future economic performance, conditions to, and the timetable for, completing the integration of financial reporting of acquired or target businesses with HGI or HGI subsidiaries, completing future acquisitions and dispositions, litigation, potential and contingent liabilities, management's plans, changes in regulations, taxes and the risks that may affect the performance of the operating subsidiaries of HGI and those factors listed under the caption "Risk Factors" in HGI's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, filed with the Securities and Exchange Commission. All forward-looking statements described herein are qualified by these cautionary statements and there can be no assurance that the actual results, events or developments referenced herein will occur or be realized. HGI does not undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operation results.
Investors and Media:
Harbinger Group Inc.
James Hart, 212-906-8560
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SOURCE Harbinger Group Inc.