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Mike Hussey, the man credited with many of the biggest property developments in the capital over the past decade, is quitting as Land Securities' managing director for London.
He will leave with a £1.3 million pay-off although up to half of that could be clawed back if he finds a new job quickly, which few people in the industry doubt will be the case.
He ran a £5.1 billion portfolio for Britain's biggest property company.
Hussey's departure is the first big shake-up overseen by new chairman Alison Carnwath, who has warned the board it has to "shape up or ship out" according to some reports.
Chief executive Francis Salway has been given six months by Carnwath to come up with a radical turnaround plan.
Stockbroker Cazenove today also said there had been speculation over conflicts of style between Hussey and Salway.
Hussey, 43, was the prime driver behind massive mixed retail and office developments like Cardinal Place in Victoria New Street Square off Fleet Street and One New Change in the City. He also successfully won planning permission for upcoming but stalled developments like the so-called Walkie-Talkie office block in the City and Park House on Oxford Street.
Carnwath explained that when Land Securities had planned its three-way demerger Hussey would have ended up as chief executive of the large, quoted, London-only property company. That plan was scuppered by the credit crunch, which led to the £750 million sell-off of outsourcing arm Trillium in January and also forced February's £755 million rights issue.
Carnwath said: "Demerger is no longer a strategic option for the company and it was agreed that Mike's future lay best outside the company."
Salway will take on direct control of the London property portfolio, which includes the Piccadilly Lights.
Hussey joined Land Securities in 2002 after six years as head of marketing and leasing at Canary Wharf. He joined Land Securities' board in 2004.
Stockbroker Cazenove confirmed it expects Hussey to walk into a new job with ease. It added it expects no great change to Land Securities' strategy.
