End of an era as John McGrath steps down from real estate business REA

John McGrath, founder of McGrath, parted ways with REA Group, publisher of realestate.com.au, on Tuesday.

In an ASX announcement on Tuesday afternoon, REA announced Mr McGrath was stepping down as a board director after being appointed to the position 19 years ago.

It’s believed Mr McGrath decided to step down for personal reasons.

REA Group is a main rival of Domain Group, publisher of this article.

Once dubbed “Mr Sydney Real Estate” for his high profile and long-running stint in the real estate industry, John McGrath has been scaling back his roles within the industry after a few tumultuous years. 

In 2016 he stepped down as CEO of the real estate agency he founded in 1988, after 30 years in charge.

His decision to step down as chief executive followed a disastrous performance on the stock market in December 2015 when it first became a publicly-listed company.

In its first seven months, McGrath Limited saw shares down more than 40 per cent from the initial $2.10 offer price.

A major shake-up of senior management was another of the many changes the company implemented after the weak showing of its maiden stock.

Mr McGrath weathered another personal hit that year, taking a 56 per cent pay cut that reduced his annual remuneration from $744,765 in 2015 to $327,415 in 2016.

He remains the biggest shareholder in McGrath Limited with about 26 per cent worth of equity.

REA Group board chairman Hamish McLennan acknowledged Mr McGrath’s service to the REA Group board in a statement.

“Mr McGrath’s lengthy contribution to the REA Group has been highly regarded by the board,” Mr McLennan said.

“I am particularly grateful for his invaluable industry knowledge. He leaves the group with a multibillion-dollar market capitalisation and we wish him the best of luck,” he said.

The search is now on for a new independent director for the company.

Domain contacted both Mr McGrath and the REA Group but they declined to comment.