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

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

Free and clear: Vornado pays off debt at 220 CPS

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

“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

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
Blackstone's Frank Cohen and Amazon CEO Jeff Bezos with the HQ2 site (Getty; Blackstone; Google Maps)

Amazon grows HQ2 site near DC with hotel buy

Amazon grows HQ2 site near DC with hotel buy
Rendering of the Tokyo Tokiwabashi project (Courtesy of Mitsubishi)

Mitsubishi unveils design for Japan’s tallest skyscraper

Mitsubishi unveils design for Japan’s tallest skyscraper
Charles Rettig, Commissioner of the IRS (Getty)

Opportunity Zone rule change seeks to entice foreign investors

Opportunity Zone rule change seeks to entice foreign investors
The proposal to rezone Industry City in Brooklyn was unveiled five years ago, but collapsed under political pressure (Courtesy of Industry City)

Here’s how Industry City’s controversial rezoning unraveled

Here’s how Industry City’s controversial rezoning unraveled
731 Lexington Avenue and 410 East 61st Street (inset) with Vornado's Steve Roth (Googel Maps; VNO)

Home Depot eyes former Bed Bath & Beyond space on First Ave

Home Depot eyes former Bed Bath & Beyond space on First Ave
arrow_forward_ios

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

Loading...