Sunrise's Klaassen steps down as CEO

Paul J. Klaassen, founder and chief executive of SunriseSenior Living Inc., is stepping down from his position as board chairman.

The embattled assisted living chain this week alsodisclosed a host of other governance changes. Lynn Krominga, a lawyer whojoined the company in September of last year, will take over as chair. Klaassenwill remain CEO and both he and his wife, Teresa, will remain on the board.

The company also plans to destagger board terms, createtwo independent director posts, limit board committee membership to five years,develop a CEO succession plan and create a governance and compliance committeeto monitor company practices.

Sunrise, which has been grappling with accountingirregularities and insider trading accusations, faces delisting from the NewYork Stock Exchange for failing to report 2006 annual earnings. In a releaseissued Wednesday, the company said its filing deadline has been extended untilMonday at which time trading in Sunrise stocks will be suspended.

The SEIU pension fund, which initially raised concernsabout unethical financial practices at the company, said that the changesannounced this week come too late.

“The company belatedly implemented certain of thegovernance changes that we and other shareholders have long been advocating,but the changes come too late to protect shareholders’ interests,” StephenAbrecht, executive director of the fund, told The Washington Post.