Rocket Companies CEO Jay Farner to retire June 1

Rocket Companies CEO Jay Farner will retire June 1 and be replaced on an interim basis by the mortgage lender's former chief executive, William Emerson, the publicly traded company announced Monday.

Rocket's board of directors has begun a search for Farner's permanent replacement.

Farner, 49, has worked at the Detroit-based mortgage company since 1996, and been CEO of Rocket Mortgage (then known as Quicken Loans) since 2017. He has been the CEO of Rocket Companies since it went public in August 2020.

Rocket Companies is an umbrella for several Gilbert companies, the biggest being Rocket Mortgage.

Farner's retirement comes during a downcycle in the U.S. mortgage business that has seen Rocket and other mortgage lenders and banks reduce headcount and book lower profits. Rocket Companies has yet to report its year-end earnings for 2022.

For the third quarter of 2022, Rocket Companies lost bragging rights for being the top-producing mortgage company in the nation, based on origination volume, to Pontiac-based United Wholesale Mortgage.

A Rocket Companies news release said Farner notified the board last Wednesday of his retirement plans and that he would immediately leave his position as vice chairman of Rocket's board.

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“For nearly three decades Jay has poured everything he has into making our organization successful,” Dan Gilbert, founder and chairman of Rocket Companies, said in a news release. “Jay has overseen the most rapid period of growth and profitability in our 37-year history."

Emerson, 60, was CEO of Rocket Mortgage from 2002 until February 2017, when Farner took over. He currently is vice chairman of Rock Holdings, the company’s majority stockholder, and vice chairman of Gilbert's privately held real estate firm Bedrock.

“We are fortunate to have someone of Bill’s caliber and experience to serve as Interim CEO while the Board conducts a search for a permanent successor," Gilbert said in a statement. “For a decade and a half, Bill served at the helm of our mortgage business — driving impressive results and setting the tone for our culture."

In a statement, Farner called his time with the company one of the most rewarding experiences of his life.

"More than 27 years ago, fresh out of college, I decided to join a small mortgage company led by Dan Gilbert," Farner said. "I never could have predicted the amazing journey that one decision would have taken me on, and I want to thank Dan for his mentorship, guidance and friendship over the years. Rocket Companies is full of incredible people — passionate about serving our clients, the community and each other. While the time is right for me to focus on my family, I will certainly miss working with some of the brightest minds in the fintech industry.”

The CEO job has been financially been lucrative for Farner — especially in 2020.

According to Rocket Companies corporate filings, he received $11.7 million in total compensation in 2019, $51.7 million in total compensation in 2020 (which included a $30.5 million cash bonus, plus over $15 million in stock options) and $1.6 million in total compensation in 2021.

Rocket Companies shares closed up 6 cents Monday to $8.87.

Contact JC Reindl: 313-222-6631 or jcreindl@freepress.com. Follow him on Twitter @jcreindl. 

This article originally appeared on Detroit Free Press: Rocket Companies CEO Jay Farner to retire June 1