By Ellen Cans
Wall Street billionaire, Leon Black has stepped down as chief executive of Apollo Global Management, months ahead of schedule. Black, who was scrutinized as being a client of shunned financier Jeffery Epstein, had announced in January that he would be leaving the company by July 1. As reported by Crain’s NY, on Monday, he announced that he was exiting the post immediately and that he would also be giving up his chairmanship, which he was originally supposed to be keeping.
As per Crain’s, Black is being succeeded by Apollo co-founder Marc Rowan, who will now serve as CEO. Jay Clayton was named non-executive chairman. Apollo also added two more independent directors to its board, Richard Emerson and Kerry Murphy Healey, for a total of 15 members.
Black, 69, spent more than 30 years building the private equity firm with his partners and turning it into one of the most profitable and powerful names in American finance. In his most recent departure announcement, he referred to unspecified health issues for himself and his wife leading to his exit. Now is “the ideal moment to step back and focus on my family, my wife, Debra’s, and my health issues, and my many other interests,” Black said Monday. “I intend to remain Apollo’s largest shareholder and strongest supporter.” He also said in the statement, “Marc has seamlessly transitioned into the CEO role, and I am confident Apollo will soar to new heights under his leadership.”
Black and Apollo have been embroiled in controversy for extensive links and payments made to Epstein, who died in jail facing charges of sex trafficking. Though Black has not been accused of any wrongdoing, the ties brought on scrutiny from clients and shareholders. Black has continuously held that the company dealt with Epstein, but that he had paid Epstein to provide professional services for his family partnership, “involving estate planning, tax, structuring of art entities and philanthropic advice.” Apollo had hired a law firm to independently investigate the matter last year. It showed that Black had paid Epstein around $158 million from 2012 through 2017 for financing services, which saved Black at least $1.3 billion in taxes.
Black has also been getting pressure to step down as Chairman of the Museum of Modern Art. Black has said in the past that he “deeply regrets” his business ties with Epstein.