Ares Management Corp. has dismissed Partner Michael R. McFerran, the Los Angeles firm’s chief operating officer and chief financial officer, citing the results of an outside investigation into allegations of “inappropriate” conduct involving fellow employees.
The investigation determined that Mr. McFerran “engaged in inappropriate personal relationships and interactions with certain employees in violation of company policies,” according to a Securities and Exchange Commission filing late Monday. The firm said the conduct was unrelated to operations or financial matters.
Publicly traded Ares said the dismissal resulted in the forfeiture of more than $50 million in future compensation, including stock and options as well as unvested carried interest, or his portion of the firm’s investment profits, that he would likely have accumulated over the next five years in his roles as CFO, COO and partner.
The firm didn’t make clear what conduct led to the dismissal of Mr. McFerran, who was 49 years old as of April 29. A spokesman said Ares wouldn’t say more about the issue.
Mr. McFerran or a representative couldn’t immediately be reached for comment.
Source: Wall Street Journal