Howard Lorber’s $1.8M salary at Elliman offset by Vector pay cut

Parent firm’s stockholders balked at CEO’s compensation in years past

National /
Jan.January 25, 2022 08:00 AM

Vector Group/Douglas Elliman’s Howard Lorber (iStock, Getty Images, Vector Group Ltd., Douglas Elliman)

As CEO of newly spun-off Douglas Elliman, Howard Lorber will receive an annual salary of $1.8 million, a recent filing shows. But instead of that being tacked on to what he makes already as Vector Group CEO, it will be subtracted from his Vector compensation package.

That figure could go up: Lorber can get a cost-of-living adjustment, and the board of directors of Douglas Elliman has the power to increase — but not decrease — his salary. He’s also entitled to an annual bonus of 150 percent of his base salary.

His other executive perks include a car and driver provided by Douglas Elliman, a club membership and dues, use of a corporate aircraft, and a $3,750 per month allowance for lodging and related business expenses.

Elliman’s separation from Vector was announced in November. One rationale was to allow investors to buy shares in the brokerage without also buying a tobacco company.

Vector Group investors have complained in years past about Lorber being paid too much. In 2020, a majority at Vector’s annual shareholder meeting rejected executives’ 2019 compensation, including $11.7 million for Lorber.

Vornado Realty Trust CEO Steve Roth, by comparison, received compensation of $11.1 million in 2019, less than Lorber despite Vornado’s greater size and market capitalization. One retail investor called Lorber’s pay “excessive.”

Douglas Elliman’s numbers have been pretty good since. The firm spun off from Vector Group before debuting publicly on the New York Stock Exchange late last year. The move came after the firm’s successful quarter, powered by a boom in home prices and strong sales.

The firm’s net income more than doubled annually to $25.1 million. Closed sales volume was $12.6 billion, up from $7.8 billion the year before.





    Related Articles

    arrow_forward_ios
    John Giannone and Jac Credaroli (Credit: iStock)
    Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans
    Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans
    Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)
    Douglas Elliman is coming to Texas
    Douglas Elliman is coming to Texas
    Douglas Elliman chairman Howard Lorber (Credit: Getty Images and iStock)
    Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax
    Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax
    More and more homebuyers and investors are coming to the negotiating table with cash in hand. (iStock)
    In cities, “starter homes” getting more difficult to find
    In cities, “starter homes” getting more difficult to find
    A photo illustration of city developers and preservationists arm wrestling (iStock)
    Preservationists and developers duel upstate. Wanna guess who’s winning?
    Preservationists and developers duel upstate. Wanna guess who’s winning?
    John Steinbeck and his Sag Harbor cottage. (Getty)
    John Steinbeck’s Sag Harbor home could become retreat for writers
    John Steinbeck’s Sag Harbor home could become retreat for writers
    Doctor Tom Frist with 1304 Chickering Road (Eagledj CC BY-SA 4.0 via Wikimedia Commons, Redfin, iStock)
    Nashville mansion asks $50M, highest in Tennessee history
    Nashville mansion asks $50M, highest in Tennessee history
    Sylvan Terrace in Washington Heights. (Douglas Elliman Real Estate)
    Two chances to live on Sylvan Terrace, one of NYC’s coolest blocks
    Two chances to live on Sylvan Terrace, one of NYC’s coolest blocks
    arrow_forward_ios

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

    Loading...