SL Green to pay lower wages to new CFO

November 11, 2010 06:00PM

Industry folks regret predecessor Gregory Hughes’ departure

James Mead, new CFO of SL Green

Real estate investment trust SL Green Realty will pay James Mead, its newly appointed CFO, a minimum of $1 million next year, plus a $300,000 signing bonus, according to documents filed with regulators, which is on par with industry standards. Last year, however, his predecessor, Gregory Hughes, made a base salary of $500,000 but earned a total of $6.3 million with bonus and stock options. “I don’t think you bring in someone new with the aim of paying him handsomely,” Jordan Sadler, an analyst with KeyBanc Capital Markets, told Crain’s. “They pay based on performance and this is a new person.” Many analysts were disappointed to learn of Hughes’ departure. “We view [his] departure as a negative for the company, as it is losing a quality CFO with intimate knowledge of the SLG platform, balance sheet, structured finance book and investors,” UBS analyst Ross Nussbaum wrote in a report. Green Street Advisors Analyst Michael Knott said investors were likely to have mixed feeling towards Mead because SL Green was over-leveraged and paid a steep price to survive the financial crisis. [Crain’s]