Hyatt Hotels Corporation, headquartered in Chicago, disclosed on Monday that Thomas J. Pritzker, aged 75, has relinquished his role as executive chairman. This development occurs in the wake of newly released documents by the Department of Justice which revealed that Pritzker engaged in correspondence with the convicted sex offender Jeffrey Epstein and his associate Ghislaine Maxwell post Epstein’s 2008 plea agreement.
"Good stewardship also means protecting Hyatt, particularly in the context of my association with Jeffrey Epstein and Ghislaine Maxwell, which I deeply regret." - Thomas J. Pritzker
Pritzker, who has been at the helm of Hyatt since 2004, has also announced that he will not be running for re-election to the company's board at the upcoming annual stockholders' meeting in May. He expressed his regret over the association with Epstein and Maxwell, acknowledging his "terrible judgment" in maintaining contact with them and admitting there was no justification for not distancing himself earlier.
The documented interactions between Pritzker and Epstein include at least 20 email exchanges from 2010 to early 2019, where they discussed personal matters and current events. Epstein's conviction in 2008 was for soliciting a minor for prostitution, and in 2019, he was found deceased in a Manhattan jail cell while awaiting trial on federal child sex trafficking charges.
In a communication to the Hyatt board, Pritzker stressed the importance of a smooth leadership transition. He expressed his deep-rooted connection to Hyatt, which has been entwined with his family's identity for seventy years. He emphasized the value he places on good stewardship.
Mark Hoplamazian, the CEO of Hyatt, has been appointed immediately as the new board chair. Board member Richard Tuttle commended Pritzker for his significant role in shaping the company's strategy. Pritzker's exit is part of a larger trend of resignations following the public release of the Epstein-related documents, which have prompted various executives and public figures to step down after their past communications came under scrutiny.
Despite resigning from Hyatt, Pritzker maintains his position as executive chairman of The Pritzker Organization, the family's principal investment and advisory firm. He continues to serve on boards for the University of Chicago and his family's philanthropic foundations, including The Hyatt Foundation and the Pritzker Architecture Prize board.
Pritzker further condemned the actions of Epstein and Maxwell, expressing sorrow for the harm inflicted upon their victims. His tenure at Hyatt has spanned over two decades, during which he has overseen the company's worldwide expansion and market growth.
The immediate appointment of Hoplamazian is seen as a move to ensure operational stability and to uphold Hyatt's strategic growth initiatives. It also serves to protect the company's reputation in the global hospitality sector. The resignation underscores the broader implications of the DOJ’s document disclosures on corporate governance and risk management, reflecting a heightened awareness of reputational risks.
For Hyatt, this change in leadership is a strategic measure to safeguard the company's long-term interests and to sustain the trust of shareholders, employees, and customers globally.
