Commission structure shifts at Newmark

TRD New York /
Nov.November 15, 2011 11:09 AM

Newmark Knight Frank brokers are being forced to contribute up to 10 percent of their commissions into stock in BGC Partners, the company that acquired the brokerage for $63 million in October, the New York Observer reported, causing some brokers to take pause. While so far no executives at Newmark have defected to other companies, managers from rival brokerages are watching closely to see what reception the shift will get, the Observer said.

“No broker wants to be told what he has to do with his share of the money,” said one broker, from a rival firm.

The commission-conversion program will make many Newmark brokers BGC equity holders, a structure that some firms have used to team build.

“BGC has produced 94 percent returns on equity and ten percent dividends,” said Barry Gosin, Newmark’s CEO. “This creates an opportunity for people here to build equity and their wealth.”

Mark Weiss, a top producing broker at Newmark, said he sees it as an opportunity.

“My personal view is that it’s a wonderful deal and I’m genuinely excited about it,” he said. “My personal interests are completely tied into my firm’s. It’s enormously gratifying to know that both myself and my colleagues are going to be rolling in the same direction as my firm. And that cuts both ways. The firm now has even more of a vested interest in my success.” [NYO]


Related Articles

arrow_forward_ios
One Thousand Museum and Porsche Designer Tower (Porsche)

Douglas Elliman agent allegedly created scheme to pocket commission advances: lawsuit

Douglas Elliman agent allegedly created scheme to pocket commission advances: lawsuit
Director of Research & Analytics for CBRE Tri-State Nicole LaRusso, Vice Chairman & Director at Savills David Goldstein, and President of Newmark Knight Frank's Tri-State region David Falk

“For years we all laughed at them”: office brokers warm to virtual tours

“For years we all laughed at them”: office brokers warm to virtual tours
Director of Research & Analytics for CBRE Tri-State Nicole LaRusso, Vice Chairman & Director at Savills David Goldstein, and President of Newmark Knight Frank's Tri-State region David Falk

How to open up our offices on tonight’s TRD Talk

How to open up our offices on tonight’s TRD Talk
TSCG and SCG Retail's David Firestein, Meridien Retail Leasing's James Famularo and Newmark Knight Frank's Jeffrey Roseman

How to restart retail on today’s TRD Talk

How to restart retail on today’s TRD Talk
“Be very careful what you ask for,” top broker warns borrowers seeking relief

“Be very careful what you ask for,” top broker warns borrowers seeking relief

“Be very careful what you ask for,” top broker warns borrowers seeking relief
Barry Gosin, Sandeep Mathrani and Christian Ulbrich

WeWork taps JLL, Newmark to help negotiate rent relief

WeWork taps JLL, Newmark to help negotiate rent relief
From left: Realogy's Ryan Schneider, Cushman & Wakefield's Brett White and Newmark Knight Frank's Barry Gosin (Credit: iStock)

Brokerage stocks plunge amid market turmoil

Brokerage stocks plunge amid market turmoil
125 Park Avenue (Credit: Google Maps, iStock)

Newmark hires nurse to screen visitors, employee tests positive for Coronavirus

Newmark hires nurse to screen visitors, employee tests positive for Coronavirus
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...