Aug 9 (Reuters) – Alternative asset manager Ares Management Corp (ARES.N) said on Monday it had terminated Chief Financial Officer Michael McFerran after a probe into allegations of misconduct found that he engaged in “inappropriate” conduct with certain employees.
McFerran, who was also the chief operating officer at the company, has been removed from all his positions at the firm and its subsidiaries, Ares said in a filing.
Ares said it started an investigation through an outside legal counsel after the company was made aware of the allegations.
According to the filing, McFerran engaged in “inappropriate personal relationships and interactions with certain employees in violation of company policies, including human resources policies and other codes of conduct…”
“The Board took swift action upon receipt of the investigation’s findings, terminating Mr. McFerran with forfeiture of significant economic interests. Mr. McFerran’s conduct was entirely inconsistent with our values and cannot be tolerated,” Ares co-founder and executive chairman Tony Ressler said.
McFerran’s dismissal was unrelated to the firm’s operations or financial controls, the Los Angeles, California-based company said, without disclosing further details about what conduct led to his dismissal.
Ares has appointed Jarrod Philips, a partner and its chief accounting officer, as the new CFO, effective Aug. 4.
McFerran’s termination resulted in him forfeiting over $50 million in future compensation, unvested restricted units and unvested carried interest that would have settled through 2026, the company added.
McFerran was previously the managing director at KKR & Co, before joining Ares in 2015.
Reporting by Jahnavi Nidumolu and Bhargav Acharya in Bengaluru; Editing by Rashmi Aich
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