Rouse Co. elevated three of its top executives yesterday and for the first time in its nearly 60-year history created the position of chief operating officer.

The naming of Douglas A. McGregor to COO and vice chairman and the promotion of its top financial and commercial development officers to executive vice presidents also paves the way for an eventual top-management succession.

Jeffrey H. Donahue, Rouse's chief financial officer, and Jerome D. Smalley, head of commercial development, had been two of eight senior vice presidents at Columbia-based Rouse. With their promotions, they are viewed as the most likely candidates to succeed Anthony W. Deering, who has headed the Columbia-based real estate investment trust since February 1995.

"They have each demonstrated outstanding ability and dedication," Deering, 53, said of the promotions. "I'm confident that they will provide strong and effective leadership to take the company into the next century."

Deering said in an interview that the three were elevated because they have a "collaborative management style, good judgment and solid leadership skills."

"They're seasoned veterans," he added. "That's a cliche, but it's true. They all have lots of experience in various parts of our business."

While Donahue will continue as the company's CFO, he also will be responsible for the legal, controller and tax functions at Rouse. Smalley will add the responsibilities of new business and acquisitions to his duties.

McGregor, 56, has been executive vice president for development and operations -- the No. 2 position at Rouse -- for the past three years. Previously, he had been a general manager of the company's planned community of Columbia. He joined the company in 1972.

Donahue, 52, has been with Rouse 25 years. Smalley, 49, joined the company in 1979.

Pub Date: 12/04/98

FTC