Paramount Group CEO Albert Behler to Receive $34M Golden Parachute

Albert Behler is set to receive an impressive “golden parachute” of $34.1 million if he decides to step down from his position as CEO and Chairman of Paramount Group after the completion of the company’s sale to Rithm Capital. This lucrative compensation package is outlined in Paramount’s Securities and Exchange Commission filings and is a part of Behler’s existing employment agreement with the company.

Behler’s compensation breakdown includes $10.7 million in cash, $19.97 million in unvested equity awards, and $3.3 million in other forms of compensation, as mentioned in the SEC filing. In addition to Behler, other Paramount executives are also entitled to significant compensation packages upon the sale’s finalization. Peter Brindley, Paramount Group’s head of real estate, is expected to receive $12.3 million, while Ermelinda Berberi, Paramount’s CFO and treasurer, will be granted $4.4 million.

The sale agreement between Paramount and Rithm Capital, which was struck in September, values the company at $1.6 billion, equivalent to $6.60 per share. However, the deal is still awaiting shareholder approval in order to reach completion. Behler, who has led Paramount Group as CEO since 1991, orchestrated the company’s impressive $2.3 billion initial public offering in 2014, marking it as the largest IPO for a U.S. REIT at the time. Paramount currently oversees 13 million square feet of office space across New York and San Francisco.

Despite the company’s successes, Paramount’s stock performance has failed to match that of its competitors, drawing attention to Behler’s opulent perks and unconventional decision-making. Earlier this year, it was revealed that Paramount had made significant payments to Behler’s personal ventures, including $3 million to a private jet company in which Behler held a 50 percent stake, and $900,000 for Behler’s personal accounting services. Paramount’s subsequent announcement of an SEC investigation into related-party transactions, conflicts of interest, and executive compensation further fueled controversy.

Behler’s involvement in directing a no-bid security contract for the vacant 1.6 million-square-foot office building at 60 Wall Street to Guardian Services, a company connected to his ex-girlfriend, garnered additional scrutiny. Communications reviewed by The Real Deal uncovered Behler’s amicable relationship with his former partner following the end of their romantic involvement, including their planned meet-up at the Michelin-starred restaurant, Le Bernardin.

Behler’s sizeable “golden parachute” is anchored in existing employee agreements for potential changes in control, with Paramount’s board also approving a $1.1 million retention bonus to incentivize Behler to remain in his position throughout the transition period. Paramount Group has declined to provide further comments on the matter, leaving Behler’s future and the outcome of the company’s sale to Rithm Capital hanging in the balance.