RE/MAX Holdings, Inc., parent company of global franchisor RE/MAX and mortgage franchise Motto Mortgage, reports that Adam Contos has announced his decision to leave the company effective March 31, 2022. Contos, who has served as the company’s chief executive officer since 2018, will also step down from the company’s board on that date. According to RE/MAX, Contos plans to spend more time with his family and pursue new entrepreneurial endeavors.
Board member Stephen Joyce has been appointed to become chief executive officer upon Contos’ departure. Joyce will serve as CEO on an interim basis. To facilitate the transition, Contos and Joyce will serve as Co-CEOs beginning March 1, 2022. The company’s board expects to form a CEO search committee to identify a permanent CEO replacement, and to retain an executive search firm to assist with the process, which will include evaluating internal and external candidates. The board also expects to conduct a formal selection process to add one additional independent board director to maintain its current size and ensure stockholder value.
RE/MAX holdings has also announced that Nick Bailey has been named president and CEO of RE/MAX effective immediately and will continue to lead all aspects of the RE/MAX brand and business globally. Additionally, Ward Morrison has been named president and CEO of Motto Mortgage and wemlo effective immediately and will continue to lead all aspects of the Company’s mortgage operations.
RE/MAX Holdings Chairman of the Board and RE/MAX Co-Founder Dave Liniger said, “The company posted record results for the third quarter, which we believe is a strong affirmation of our strategy and the recent investments we have made to diversify and expand our business. This performance and the growth opportunities we see ahead give us confidence in our future.”
“Adam is an outstanding leader, and on behalf of the entire board, we thank him for his nearly two decades of service to our company,” Liniger added. “His leadership and commitment to the company, working alongside our deep and talented senior management team, have driven our success and established a strong foundation for our continued growth.
“We are delighted that Steve has agreed to transition to the CEO role while we take the requisite amount of time to conduct our search for a permanent CEO. We asked Steve to join our board nearly two years ago because we were drawn to his extensive track record of success and growth as CEO of publicly traded, global franchisors. His contributions to our board and company have been significant. He is a highly engaged executive and during his time in the CEO chair we expect the company and our shareholders will benefit as he leads the evolution of our strategy to drive enhanced value for all stakeholders.”
“Serving as CEO of RE/MAX Holdings has been the high point of my nearly 20 years with the company,” said Contos. “I am proud of everything we accomplished, especially given the dynamic changes in our industry and society. It has been my sincere pleasure to work with our excellent leadership team and employees, as well as some of the most dedicated, productive and entrepreneurial professionals in the real estate and mortgage industries. I thank them for their friendship, support and contributions. I am confident that the future is bright for the company and for our two incredible networks.”
Joyce commented, “I am honored to work alongside the RE/MAX Holdings management team and board as we build on our strengths and advance our industry leadership positions. The real estate and mortgage sectors continue to experience tremendous change, but what remains constant is the unique and strong value proposition our company presents for productive agents, loan originators and franchisees to grow their businesses. We are proud to play such a critical role in their success.”
Joyce is a seasoned executive with proven success leading global franchise operations, including Dine Brands Global, the franchisor of IHOP and Applebee’s Grill + Bar, where he was previously CEO and board member. Prior to Dine Brands Global, he served as president and CEO of Choice Hotels International, where he reinvigorated and grew its hotel brands, expanding them from nine to 13 brands, and grew Choice Hotels internationally to more than 6,700 hotels in over 45 countries. Earlier in his career, Joyce spent over 25 years with Marriott International, Inc., where he created its first franchise program and helped build a network of more than 2,500 franchised hotels. Joyce also serves on the board of directors of Hospitality Investors Trust, Inc. and CARE International.
Share Repurchase Program
RE/MAX Holdings also announced that its board of directors authorized a common stock repurchase program of up to $100 million, reflecting confidence in the company’s performance and the strength of its balance sheet.
“The investments we have made over the past few years, including our recent acquisition of RE/MAX INTEGRA’s North American regions, position us well to continue to grow and generate substantial amounts of free cash flow over the long term,” said Liniger. “Since our initial public offering over eight years ago, the company has balanced returning capital to shareholders with strategic investments in the business to create shareholder value, and that is how we will continue to prioritize our capital allocation accordingly.”