REBNY lays off staff, slashes salaries

Memo cites decline in membership dues, cancellation of fundraisers

New York /
Jun.June 12, 2020 06:15 PM
REBNY president James Whelan and 570 Lexington Avenue (Whelan by Evan Gutierrez, Google Maps)

REBNY president James Whelan and 570 Lexington Avenue, where the organization is based (Whelan by Evan Gutierrez, Google Maps)

Facing a dramatic decline in membership dues, the Real Estate Board of New York has laid off staff, cut executives’ salaries and reduced its expenses.

The trade group announced the cuts, including a 15 percent decrease in expenses, in a letter sent to members of its board of governors and obtained by The Real Deal.

Sources familiar with the situation said REBNY laid off more than 10 percent of its staff, cut senior staffers’ pay by 10 percent and slashed President James Whelan’s salary — which before his promotion last year, according to REBNY’s latest tax filings, was $587,651 — by one-third. His predecessor earned more than $800,000 annually.

“Payment of membership dues slowed to a trickle and we are not able to stage the customary wide array of revenue-generating events for our members,” the memo states, alluding to social distancing protocols.

Early on during the pandemic, REBNY predicted a $4 million revenue shortfall on its $15 million budget for the year, according to the memo.

“The Covid-19 pandemic has inflicted profound damage on New York City, its people and its economy. REBNY is not immune to or insulated from that impact,” the organization said in a statement. “To manage our budget issues, we have focused on decreasing expenses including salary cuts, staff reductions and other measures.”

The trade group collected $9.7 million dues in 2018, according to its 2018 tax filing. According to the disclosure, the group had roughly a dozen senior staff members with salaries ranging from just over $143,500 to more than $540,200, not including Whelan. John Banks, whom Whelan replaced in the middle of last year, pulled in about $815,000, while past president Steven Spinola — who REBNY said continued to advise the organization — reaped about $391,000.

In the wake of the coronavirus crisis, a slew of real estate companies — including Douglas Elliman, the Corcoran Group, Compass, Avison Young and JLL — have announced layoffs and other cost-cutting measures.

Many REBNY member firms are major landlords and some have struggled to collect rents in recent months, especially from retail tenants.

Write to Kathryn Brenzel at [email protected]


Related Articles

arrow_forward_ios
John Banks
High expectations: A look at John Banks’ 4 years at REBNY
High expectations: A look at John Banks’ 4 years at REBNY
John Banks
John Banks to step down as REBNY president
John Banks to step down as REBNY president
REBNY Awards
Newmark Knight Frank wins REBNY retail award for Alamo Drafthouse deal in FiDi
Newmark Knight Frank wins REBNY retail award for Alamo Drafthouse deal in FiDi
Gov. Andrew Cuomo (Getty, iStock)
New York will adopt CDC’s mask guidance: Cuomo
New York will adopt CDC’s mask guidance: Cuomo
U.S. President Joe Biden removes his mask before speaking about updated CDC mask guidance. (Getty)
In CDC we trust: Mask guidance prompts changes
In CDC we trust: Mask guidance prompts changes
Chime CEO Chris Britt and 101 California Street (Google Maps)
Fintech firm may sign biggest lease in San Fran of pandemic
Fintech firm may sign biggest lease in San Fran of pandemic
The parcel of land in Causeway Bay (Google Maps)
Hong Kong sells Causeway Bay site for $2.5B
Hong Kong sells Causeway Bay site for $2.5B
Gov. Andrew Cuomo (Getty, iStock)
New York’s rent relief site goes live — without applications
New York’s rent relief site goes live — without applications
arrow_forward_ios

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

Loading...