The Real Deal New York

American Realty’s Schorsch giving up $100M in pay

Embattled REIT king walking away from comp package amid accounting scandal

December 16, 2014 03:10PM

schorsch

From left: Nicholas Schorsch and David Kay

Nicholas Schorsch, who yesterday resigned from his position as executive chair of scandal-hit American Realty Capital Properties, is giving up $100 million in pay.

According to company filings, the package would have included approximately $91 million in salary and stock and cash bonuses, plus 1 million units of a retention award. Those units were valued at $8.99 million on Tuesday, Bloomberg News reported.

Schorsch will also relinquish about 15 million partnership units, worth $134 million.

Schorsch tendered his resignation Dec. 12. His exit followed the REIT management’s announcement in October that it had discovered accounting errors that were intentionally concealed.

The firm’s chief executive David Kay also resigned, along with Lisa Benson, the firm’s president and chief operating officer. William Stanley, a director at the company, will act as interim CEO and chair until permanent replacements are named.

The Securities and Exchange Commission is investigating the accounting irregularities. Schorsch has not been accused of wrongdoing in the company’s misstatement of results.

Moody’s Investor Service on Tuesday cut ARCP’s credit rating to junk. The company’s stock price has plunged since the announcement of the accounting errors. [Bloomberg News] — Tess Hoffmann

  • Leyla Miln

    To be honest I do not understand why people who are not guilty will leave the company. So I guess that everybody can make a solution that there were really some mistakes in their calculations and they are aware of them. Such financial organizations earn a lot of money and in the end the reason is found. Instead of using such unreliable services you may better apply for payday advances for people in need. nowadays it is much useful to take short-term loan instead of making long-term obligations due to the unstable economy.

  • 608forever

    ARC tried to “relieve” a building from a certain NYC labor pension fund- valuation at 29 million when it was worth probably 229 million. Probably would have sold it to the house account.

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