Phil Falcone is leaving one holding company to focus on another and his hedge fund.
Harbinger Group announced Tuesday that Falcone will resign as chairman and CEO on Dec. 1. Joseph Steinberg, an independent director, will become chairman; a search is underway for a new chief executive.
"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," Steinberg said in a statement.
Falcone will now focus on HC2 Holdings and Harbinger Capital Partners, according to the release.
He is cashing out nicely from HGI. He will get a lump sum payment of $20.5 million, plus $19.8 million in bonuses.
Founded in 1994 and led by Falcone, HC2 is another holding company for subsidiaries in the U.S. and U.K. According to a recent news release, HC2 owns or has majority stakes in such enterprises as a steel company, an underwater cable service provider, a mobile network operator and a natural gas retailer.
HCP, Falcone's other focus, is the hedge fund firm that made him famous.
HCP was once one of the largest private money managers in the country, but in 2013 Falcone was barred from the securities industry for at least five years and agreed to pay an $18 million fine for market manipulation and favoring some investors over others. Despite the penalty, Falcone is allowed to help manage the hedge funds to honor client redemption requests with the help of a third party.
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HCP has been in a legal fight to keep some control of LightSquared, the bankrupt wireless company now controlled by Dish Network chairman Charles Ergen, the largest LightSquared debt holder.
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Harbinger Group director Keith Hladek is also resigning from the board to work with Falcone.
Falcone did not respond to an email seeking comment.
