Albert Behler’s “golden parachute” will allow him to enjoy more than a few dinners at Le Bernardin.
If the Paramount Group CEO and Chairman steps down from his position after the company’s sale to Rithm Capital closes, he will be leaving the office REIT with $34.1 million, according to Paramount’s Securities and Exchange Commission filings.
The compensation package is part of Behler’s existing employment agreement with Paramount.
Behler’s compensation will include $10.7 million in cash, $19.97 million in unvested equity awards and $3.3 million in other compensation, according to the SEC filing.
Other Paramount executives will also be entitled to compensation packages once the sale is completed. Paramount Group’s head of real estate Peter Brindley will receive $12.3 million, and Ermelinda Berberi, Paramount’s CFO and treasurer, will receive $4.4 million.
Paramount reached a deal in September to sell the company to Rithm Capital for $1.6 billion, or $6.60 per share. The deal still needs shareholder approval to close.
Behler has been the CEO of Paramount Group since 1991. He spearheaded Paramount through its $2.3 billion initial public offering in 2014, which at the time was the largest IPO for a U.S. REIT. Paramount controls 13 million square feet of office space in New York and San Francisco.
But in recent years, Paramount’s stock has underperformed its peers. Behler also generated headlines for his lavish perks and bizarre decision-making.
Earlier this year, Paramount revealed it made millions of dollars in payments to Behler’s personal companies and interests. The previously undisclosed payments included $3 million to a private jet company, of which Behler had a 50 percent stake, and $900,000 for Behler’s personal accounting services.
In July, Paramount reported that it was under an SEC investigation related to disclosures for related-party transactions, conflicts of interest and executive compensation.
The Real Deal also discovered Behler pushed for a no-bid security contract for 60 Wall Street, a 1.6 million-square-foot vacant office building, to Guardian Services, according to sources and communications reviewed by TRD. Behler’s ex-girlfriend worked at Guardian and the two maintained friendly relations since their relationship officially ended.
At least one text between Behler and the employee, reviewed by TRD, revealed plans to meet up at Eric Ripert’s Michelin-starred restaurant, Le Bernardin.
On September 9, 2019, Behler texted the employee: “How are you? Hope all well. Talk tomorrow?”
Her: “Yes please 🙂 call me anytime xoxo”
AB: “time for lunch?”
Her: “That will be so nice to see you. Yes I am available.”
AB: “12:30 le Bernadin lounge.”
Her: “Perfect.”
Most of Behler’s “golden parachute” is based upon existing employee agreements in the event of a change in control.
Paramount’s board of directors approved a $1.1 million retention bonus for Behler to stay on during the transition period.
Paramount declined to comment.
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