Vornado paid Steve Roth $2M for stocks he didn’t own

At least 9 other companies do the same

TRD New York /
Mar.March 21, 2018 04:30 PM

Steven Roth

Steven Roth, CEO of Vornado Realty Trust, quietly received nearly $2 million worth of dividends last year on shares he didn’t own, tripling his cash compensation.

Companies often provide executives with shares that don’t vest for several years, though they vary on when they pay out dividends. While some companies wait for executives’ restricted shares to vest before paying out dividends, others pay executives as if they owned the unvested shares, Crain’s reported.

Vornado isn’t alone: At least nine other New York companies pay executives such dividends, including SL Green Realty, JPMorgan Chase and Philip Morris International. Such payouts are potentially more valuable under the new tax law, which maintains a lower tax rate on dividends than earned income.

According to Vornado’s regulatory filing, Roth received $10.5 million in 2017. But he was also awarded $1.999 million from 763,286 unvested restricted shares. [Crain’s]Kathryn Brenzel

Related Articles

Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

Free and clear: Vornado pays off debt at 220 CPS

Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call

Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue

Facebook CEO Mark Zuckerberg and Apple CEO Tim Cook with a rendering of the Farley development (Credit: Getty Images, SOM iStock)

Facebook facing off with Apple over space in Vornado’s Farley Building conversion

An example of roll-off waste management (Credit: YouTube, iStock)

Big building owners prevent city from dumping container-pickup in trash-collection reform

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

220 Central Park South and Michael Cantanucci (Credit: Getty Images and Google Maps)

Car dealer drops $38M for condo at 220 CPS

Facebook CEO Mark Zuckerberg and a rendering of the Farley Post Office building redevelopment (Credit: Getty Images, SOM)

Facebook in talks for massive lease at Vornado’s Farley Building