Eric Carlson joins RE/MAX Holdings following the retirement of Adam Kontos. He also joins the company during a tumultuous time for the real estate industry.
After a lengthy search following the departure of Adam Kontos, RE/MAX’s parent company, RE/MAX Holdings, announced Monday that it has appointed the former CEO of DISH Network Corporation as the franchisor’s new head.
Erik Carlson’s new term at RE/MAX Holdings began Monday. RE/MAX said in a statement that Carlson was selected after a “comprehensive search” and that during his time at DISH, he “oversaw the company’s day-to-day operations, managed over $15 billion in revenue, and led successful acquisitions.” “I made a contribution.” Dave Liniger, chairman and co-founder of RE/MAX Holdings, added in a statement that Carlson is “the ideal executive to take over.”
“He is a strong and versatile leader with decades of experience overseeing large companies and managing high-performing teams in disruptive industries, and is a self-described ‘radical customer focus.’ , all of which make him uniquely qualified to lead RE/MAX Holdings through its next phase of growth,” added Liniger.
According to his LinkedIn profile, Carlson started his career at DISH in 1995 and gradually worked his way up the ladder. He held the position of president and CEO for six years until he left this month to join RE/MAX.
RE/MAX Holdings’ search for a new CEO began in February when then-CEO Adam Kontos announced his retirement. Mr. Kontos had been with the company for 19 years. His announcement surprised the industry, but he later resigned from the position to spend significant time on his travels, focus on other entrepreneurial endeavors, and spend more time with his family. I explained that I wanted to resign.
Following Contos’ departure, RE/MAX board member Stephen Joyce became interim CEO.
RE/MAX Holdings is the parent company of securities franchisors RE/MAX and Motto Mortgage. Nick Bailey is CEO of RE/MAX’s franchise business and is not part of this year’s management shakeup.
Mr. Carlson entered the real estate industry at a difficult time. After a strong housing market early in the COVID-19 pandemic, rising mortgage rates have gradually eroded the housing industry’s momentum over the past two years. As a result, inventory is low and buyers face significant affordability hurdles.
That environment took a toll on RE/MAX. When the company reported its financial results earlier this month, it revealed that sales had declined from July to September. This is the fifth consecutive quarter of decline. The company also suffered a net loss of $59.5 million in the quarter, a reversal from the $100,000 profit it made in the third quarter of last year.
In addition to a tough housing market, Carlson joined the company in the aftermath of the Sitzer | Burnett’s judgment. The decision, siding with the home seller plaintiffs and against industry giants, is the latest chapter in a bombshell lawsuit challenging how agents are compensated. RE/MAX was a defendant in the lawsuit, but submitted a settlement offer before the trial began.
RE/MAX settled a similar email lawsuit, but fee-based lawsuits are proliferating. This means the industry is likely to face pressure to change in the near future.
As CEO, Carlson will have to deal with whatever these changes are, even though their scope and scale are currently unclear. Meanwhile, the satellite TV business, where Carlson previously worked, has also faced significant disruption in recent decades due to the rise of Internet-based streaming services such as Netflix. In other words, RE/MAX’s new CEO is no stranger to change and hardship.
In any case, Carlson said in a statement Monday that he is excited to start working for RE/MAX Holdings, adding that it is “an entrepreneurial company that I have long admired.”
“Dave and Gail Liniger have founded and built an enduring real estate company with a great brand and a productive network spanning the globe,” Carlson concluded. “I look forward to joining the RE/MAX Holdings team and leveraging my operational expertise and experience working with local businesses and serving the community to further expand on our company’s success.”
Email Jim Dalrymple II