Tuesday, July 15, 2014

For Forest City Enterprises, Greenland deal leads to $1.6 million in bonuses for top executives

The Forest City Enterprises/Forest City Ratner deal with the Chinese government-owned Greenland Group for a 70% stake in the Atlantic Yards project going forward may not have brought Forest City as much cash as it once hoped, but it certainly lowered the company's risk (and ensures a faster development fee of 5%).

And that, apparently, is cause for some internal celebration. From an 8-K filing to the Securities and Exchange Commission:
On July 8, 2014, in consideration of the significant efforts and accomplishments associated with the closing of the joint venture between Forest City Enterprises, Inc. (the “Company”) and Greenland USA, a subsidiary of Shanghai-based Greenland Group Co., the Compensation Committee of the Board of Directors approved one-time, discretionary cash bonuses to the following “named executive officers,” as defined in the Company’s most recent proxy statement [p. 51 here]:
  • David J. LaRue, President and CEO: $450,000 
  • Robert G. O’Brien, ExecutiveVP and CFO: $412,500 
  • James A. Ratner, Executive VP: $375,000 
  • Ronald A. Ratner, Executive VP: $375,000
That omits only one "named executive officer," Board Chairman Chuck Ratner.

So perhaps Bruce Ratner, Chairman of Forest City Ratner and another Forest City Enterprises Executive VP, will get his bonus another way.

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