Top-Exec Pay Train Runs Full Steam Ahead
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CNYB 03-09-09 A 1 3/6/2009 8:22 PM Page 1 INSIDE NY after TOP STORIES Paterson —Greg David Recession? Tell outlines how the political that to retailers in dominos could fall 5th Ave.’s hot zone ® Page 11 PAGE 2 Property lender iStar crashes VOL. XXV, NO. 10 WWW.CRAINSNEWYORK.COM MARCH 9-15, 2009 PRICE: $3.00 back to earth PAGE 3 Investors may think Top-exec pay this is 1997, but few others do THE MOUTH train runs full PAGE 3 SPECIAL REPORT THAT ROARED steam ahead There’s nothing conservative Filings for ’08 show CHECK STUBS about the boost to WABC radio boards doing all from Rush Limbaugh’s resurgence they can to ignore BY MATTHEW FLAMM poor performance rush limbaugh likes to complain that President Obama is BY AARON ELSTEIN Duncan James Ivan out to destroy the capitalist spirit in America. But so far, life Niederauer Tisch Seidenberg SMALL BUSINESS under socialism has been pretty good for the confrontation- amid the deepest economic col- FIRMS GRAB ON TO al talk radio star. lapse in generations, corporate $7.1M $7M $18.6M America is coming up with a nov- NYSE chief LOEW’S CEO VERIZON THE COST-CUTTING AX In the months since the Republican rout left Democrats collects a gets 8% hike head keeps in charge and conservatives on the run, the outspoken Mr. el way to justify extravagant execu- performance from board controversial As recession’s grip tightens, tive pay: Ignore the bad news. bonus after that ignored $35 million companies find creative ways Limbaugh has become the de facto leader of the opposi- Companies that sank into the posting a $2 billion “golden to trim expenses PAGE 15 tion—and the only radio personality who gets national at- $738 million worth of bad coffin” red last year are looking past a host net loss. news. perk. G tention on a daily basis. How to identify shaky of business expenses, ranging from bloomberg news clients and avoid deadbeats Ratings for The Rush Limbaugh Show on its flagship sta- asset write-downs to higher-than- PAGE 19 See MOUTH on Page 8 expected operating costs, to ra- seem to make pay cuts a given. G Largest business tionalize paying brass even more “Executive pay is the ultimate improvement districts than they got in flush times. Oth- shell game,”says Richard Ferlauto, PAGE 20 ers appear to be reducing pay but a longtime critic of corporate com- continue to bestow extraordinary pensation practices and director of perks, such as “golden coffins.” pension investment policy at the BUSINESS LIVES Defiant shareholders admit American Federation of State, PAPER WEALTH that reining in the practices is a County and Municipal Employ- tough battle, even though the dire ees.“Boards come up with all sorts Angelica Berrie See PAY TRAIN on Page 8 pours her economy and lousy results would passions (and her millions) intointo cultcult retailer Surgeons’ plans Kate’s Paperie.Paperie PAGE 25 knifed by hospitals Proposed surgery center seen as threat; INDEX insurers, employers take opposite view RATINGS RUSH now is approval for the facility NEIGHBORHOOD JOURNAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 BY BARBARA BENSON WABC-AM’s Rush Limbaugh Show has gotten a huge boost in listeners. from the state Public Health REAL ESTATE DEALS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _12 Council, which meets Friday. THE WEEKS AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _14 Share of audience two years ago,Stephen Nicholas That approval is doubtful. CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _22 and 13 other doctors proposed a The plan is vehemently opposed $10 million ambulatory surgery by nearby hospitals and the in- THE INSIDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _24 center with six operating dustry’s lobbying group, the CORPORATE LADDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _26 4.7 5.9 +26% rooms and state-of-the-art powerful Greater New York TABLE TALK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _27 DECEMBER JANUARY % CHANGE equipment.They billed Sur- Hospital Association. They ar- SeeEXECUTIVE AT DEADLINE MOVES on _ _ _ _ _ _ _Page _ _ _ _ _ _ _ _ _ _ _ _ _ _2 _ _ _ _ _ _ _ _ _ _ _ _27 For listeners age 12 and older. Source: Arbitron giCare of Manhattan as a gue that SurgiCare will steal getty images better alternative to hospi- much of the hospitals’ market tals, with their high costs share for many simple surger- and risk of infections. ies and result in the loss of 10 5 COMINGNEXT WEEK “We think we are millions of dollars. They creating a brand-new also note that such facil- REAL ESTATE: Obama plan raises hopes for those facing foreclosure. Report way to provide med- ities aren’t obligated to looks at 3 families on the edge and at ical care,” says Dr. provide charity care. ELECTRONIC EDITION earlier failed attempts to help. Plus, Nicholas, an ortho- “GNYHA firmly pedic surgeon. believes that approving NEWSPAPER small deals rock; auctioneers thrive. All they need See HOSPITALS on Page 8 istockphoto 71486 01068 0 CNYB 03-09-09 A 2,3 3/6/2009 7:39 PM Page 1 IN BRIEF New stores forge CB RICHARD ELLIS INVESTORS PURCHASED 1540 BROADWAY FOR AROUND 60% LESS than the building fetched in 2007.The independently operated ahead on Fifth subsidiary of CB Richard Ellis Inc. won’t say how much it paid, Projects planned before meltdown but sources claim the price tag was $355 STREET OF DREAMS million.They say Harry BY ADRIANNE PASQUARELLI Macklowe paid around 56th Street $950 million as part of a opening an expensive flagship in this $7 billion purchase of economy should qualify an apparel compa- seven buildings, which ny for a padded cell. Yet two retailers, Ar- ARMANI opened its location in February. he was eventually forced mani and Diesel, opened expansive empo- 55th Street to return to lenders after riums on the midtown Fifth Avenue 1540 Broadway failing to repay his loan. corridor last month. And Tommy Hilfiger will open a 22,000-square-foot store at 681 PERHAPS NONPROFITS AREN’T IN AS MUCH Fifth Ave. this summer. All three commit- TROUBLE AS WE THOUGHT. UNLIKE THEIR ted to the launches over a year ago,but even 54th Street 5th Ave. corporate counterparts, the majority of after the storm clouds burst in the fall, the nonprofits in New York City are actually companies forged ahead. planning to increase their staffers’ salaries this “Fifth Avenue is the most revered street year or at least keep them the same, according in the world,” and having a store there is to the annual salary survey by recruitment firm worth the risk, says Steve Birkhold, chief Professionals for Nonprofits. A full 51% of executive of Diesel USA. “The foot traffic respondents said they would increase salaries in is in excess of 40 million people a year, in a 2009, while 32% expect to keep them the same good economy or a bad economy.” as last year. Just 6% of the groups plan to reduce staff salaries, and 11% are undecided.The A shift from luxury to lifestyle survey drew 500 respondents from all areas of as the rest of New York faces rising re- the nonprofit sector.The majority have annual tail vacancies and slowing consumer buck ennis photos operating budgets of $5 million to $50 million. spending, the hot zone, between 49th Street and 58th Street, is standing its DIESEL calls Fifth “the world’s most-revered street.” THE DEEPENING RECESSION IS HITTING THE ground. The $2,500 a square foot that BRONX HARD. THE UNEMPLOYMENT RATE IN Abercrombie & Fitch agreed to pay last the borough soared from 8.3% in December to summer for its kids store at 666 Fifth After a $4 million renovation of its store 9.7% in January—the highest level in the city, might be a rent relic,but ground-floor ask- at 645 Fifth, Gant USA, a purveyor of and the highest level in the Bronx in five years. ing rents still range from $1,850 to $2,200 preppy duds, saw sales rise 44% last year Some 51,200 borough residents were a square foot. And retail business remains from 2007. Chief Executive Ari Hoffman unemployed in January. Brooklyn had the healthy, even though the tenant mix is says it is the best performer of the compa- second-highest unemployment rate, at 7.7%, changing.