Jeff Potter says Exclusive Resorts, the company he's joining as CEO, reminds him of Frontier Airlines, the company he's leaving.

But there also are important differences: "It's not too often an organization is a terrifically well-financed organization, dynamic in terms of management, and basically defining a new consumer industry," Potter said. "There aren't too many positions out there (like this)."

Potter said last week he would leave Frontier Airlines, where he's worked for most of the past 12 years, on Sept. 6. But he didn't reveal his destination, except to say it was outside the airline industry.

Monday, the other shoe dropped. Exclusive Resorts, the Denver-based real estate club, said Potter will become its new CEO.

Exclusive Resorts, founded in 2002, is part of a nascent industry. The company offers wealthy travelers the opportunity to use its properties as alternatives to buying vacation homes. One-time membership fees run into the six figures, with annual dues in the tens of thousands. Boulder-based Quintess, another entrant in the industry, merged last year with Dream Catcher Retreats.

With AOL founder Steve Case as majority owner and a billion-dollar property portfolio, Exclusive Resorts is widely regarded as a leader in the field.

To make room for Potter, current CEO Donn Davis assumes the position of executive chairman. Potter will report to him.

"Jeff is a proven CEO in a very competitive part of the travel industry," Davis said. "He clearly brings great management experience, in terms of having to continue to provide great customer service, while still (growing) the business."

When a fast-growing private company adds a CEO with public-company experience, the natural assumption is that an IPO is in the works. But, warned Davis, "I wouldn't infer anything about him leading a public company."

And, Potter said, "when Donn approached me, it wasn't a topic of discussion. What we focused on was leading an organization and what I could bring to the table."

Potter leaves the airline business as Frontier faces challenges. Southwest Airlines has cut into Frontier's low-fare business in Denver, and the company posted a loss in the quarter ended June 30.

The company's share price is down 70 percent since Potter became CEO in 2002, steeper than the drop in the Amex airline index.

Potter's departure, coupled with the retirement of Chairman and co-founder Sam Addoms, also has sparked speculation about Frontier's future.

But Potter, who will remain on Frontier's board, says the company "will do wonderful things. . . . I had a great job and I'm moving on to a great job."

Potter made a salary of $311,250 and no bonus in Frontier's most recent fiscal year. While the company granted him options and stock awards valued at more than $300,000, Frontier's declining share price has left all of Potter's nearly 275,000 stock options out of the money.

Potter declined to discuss his compensation, as did Davis, who would say only that Potter has some sort of equity participation in Exclusive Resorts.

"Do we all get a paycheck?" Potter asked rhetorically. "Yes, but that wasn't the driving force behind this decision."

Jeff Potter on board with Exclusive Resorts

• Founded: 2002 by brothers Brent and Brad Handler

• What it does: Owns a portfolio of $1 billion worth of luxury vacation properties that club members can use

• Big name: AOL co-founder Steve Case bought a majority stake in the company in 2004.

• The cost: Members pay $225,000 to $425,000 to join, with annual dues ranging from $12,900 to $29,000 for 15 to 45 days of travel a year.

Five-star properties

Jeff Potter is leaving Frontier Airlines for Exclusive Resorts, the Denver-based real estate club, as its new CEO. The company offers wealthy travelers the opportunity to use its properties as alternatives to buying vacation homes and has locations all over the world.

• In Colorado:

Snowmass

Telluride

Vail and Beaver Creek

• Other locations:

Kohala Coast, Big Island, Hawaii

Grand Cayman, Cayman Islands

Tuscany, Italy

French Alps

Peninsula Papagayo, Costa Rica

ParisNote: A Steamboat Springs Location Is Under Development. Photos: Exclusive Resorts

David Milstead is finance editor of the Rocky Mountain News. He can be reached at milstead@RockyMountainNews.com or 303-954-2648.

Back to Top