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Amid a rapidly shifting housing market and a period of seismic change to its business strategy, Compass announced Friday that it has hired a new chief financial officer.
Kalani Reelitz will officially step into the role of CFO on Nov. 15, according to a statement from Compass. The statement notes that he “will be responsible for all aspects of the company’s financial operations,” as well as “a key member of the executive management team” with a “focus on building sustained profitability and free cash flow generation.”
Compass CEO Robert Reffkin said in the statement that Reelitz is a “strong leader with a deep understanding of the real estate business.”
“The combination of Kalani’s operational excellence and financial discipline gained from many years of helping large public companies grow profitably will be an incredible asset as we accelerate our path to profitability,” Reffkin added.
Reelitz comes to Compass after spending nearly seven years at real estate services firm Cushman & Wakefield. He finished his stint at the company as an executive vice president, chief transformation officer, and chief operations office over Cushman & Wakefield Americas.
Before joining Cushman & Wakefield, Reelitz spent 12 years in a variety of leadership and finance roles at pharmacy chain Walgreens.
Reelitz steps into a role that was vacated earlier this year by the departure of Kristen Ankerbrandt, who left with plans to start her own investment fund.
The hiring also comes at a pivotal time for Compass when financial results are more critical than ever. Rising mortgage rates and a slumping housing market have created significant headwinds for real estate companies, and many — including Compass — have carried out layoffs and seen significant drops in their share prices this year.
Compass also recently stopped giving out cash and stock incentives to new agents. At the time of that announcement, Reffkin framed the move as part of a plan to become cash-flow positive in 2023.
Reffkin’s statement on Reelitz also mentions cash flow, suggesting that the topic remains top of mind for company leaders and that Reelitz himself will be expected to play a substantial role in helping Compass achieve profitability.
In Friday’s statement, Reelitz expressed enthusiasm about the task at hand, saying he “could not be more excited to join the team at Compass at this critical time in the company’s journey to profitability.”
“With its strong foundation and a loyal, high-performing agent team,” Reelitz added, “Compass has accomplished amazing things in its first decade, becoming the largest brokerage in the country by sales volume and joining the Fortune 500. I am excited to be a part of the next chapter of growth and success with this team.”