CNYB 03-23-09 A 1 3/20/2009 8:08 PM Page 1 INSIDE AIG’s TOP STORIES shame —Greg David’s Recession no looking for civic leaders who match for NYC don’t come private schools ® from finance Page 11 PAGE 3 Stores seek buzz boost, embrace VOL. XXV, NO. 12 WWW.CRAINSNEWYORK.COM MARCH 23-29, 2009 PRICE: $3.00 fledgling designers PAGE 3 Tenants dumping These CEO surplus space puts pressure on rents PUBLISHER pay grades PAGE 3 SPECIAL REPORT are an A+ BACK Imagine: Execs CUTS ABOVE who see bonuses CEOs who took outsize shrink even when pay reductions in 2008 they outperform SCOTT BOK FROM (PICTURED) AND SIMON BY AARON ELSTEIN BORROWS OF GREENHILL the rarest sight in corpo- The stock rose HEALTH CARE DEAD! 8% last year, rate America might be a RECESSION RIDE chief executive at a profitable but the co-CEOs chopped their pay to $5.5 million G As capital dries up and company who, in recogni- tion of tough times, takes a each from $22 million and revenue falls, hospitals are $24 million, respectively. putting projects on hold and pay cut. crying for state aid. PAGE 13 Amid extraordinary pub- lic outrage over executive NOAH G Hospital for Special GOTTDIENER bonuses at American Inter- OF DUFF & Surgery is a rare success national Group Inc.and oth- PHELPS story.What are the lessons? er bailed-out financial com- PAGE 13 panies, a handful of CEOs His total comp G Walking the tightrope of was pared by accepted reduced compen- 4%, debt collection. PAGE 17 despite sation last year in spite of revenue and earnings strong corporate perform- jumps and a stock dip of ance. In most cases, they just 3%. BUSINESS LIVES With debtors at crain’s composite image work at firms that were until BACK FROM IRAQ dia Inc. has cheated death—again! recently private partnerships EDWARD bay, Pecker turns That’s right! The man who built a or that still have the LUDWIG Veterans find wobbly empire out of weekly tabloids founder’s relatives on the OF BECTON new careers to writing AMI’s like the Enquirer, glossy celebrity title board. Such ties deter CEOs DICKINSON help their Star and health magazines Shape and from indulging their greedi- Pay was transition next chapter Men’s Fitness recently convinced the er instincts. back to whittled to company’s bondholders to take a 40% “When it comes to pay, $7.5 million civilian life BY MATTHEW FLAMM haircut—and keep the company alive! there are leaders in the busi- .PAGE 23 from $8.1 million, while net In fact, the debt restructuring, com- ness world with a sense of income surged 27% and the national enquirer won’t report pleted in late January, was only the most ethics and doing the right revenue jumped 13%. this story about its parent company, but recent last-minute rescue of AMI. Mr. thing,” says Vineeta Anand, Source: Company filings it’s true! David Pecker’s American Me- See AMI on Page 8 See RARE BUNCH on Page 8 INDEX Madoff victims flood Judaica market with treasures IN THE MARKETS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _4 REAL ESTATE DEALS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _5 Hanukkah lamp there. CROWN JEWEL: A silver Torah crown is on First they lose their money, the block at J. Greenstein & Co. NEW YORK, NEW YORK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _6 Jonathan Greenstein, chair- SMALL BUSINESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _7 then their family heirlooms man of auction house J.Green- stein & Co., was receiving two cation and consignment of an- THE INSIDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _12 or three e-mails a week from tique Judaica. CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _18 BY HILARY POTKEWITZ people suddenly interested in By the time he received word of CORPORATE LADDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _22 selling antique Jewish heirlooms. a set of silver cups engraved with He- EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _22 sometime in january, the e-mails started com- He typically gets two or three a brew letters indicating that they were SeeTABLE AT TALK DEADLINE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _on _ _ _ _ _ _ _ _Page _ _ _ _ _ _ _ _ _ _ _ _ _ _2 _ _ _ _ _ _ _ _ _ _ _ _23 ing more frequently, describing an 18th-century month at his Queens-based compa- smelted from coins given out by a long- Polish silver candelabra here, an Italian bronze ny,which specializes in the authenti- See JEWISH TREASURES on Page 9 12 5 NEXT WEEK CRAIN’S UNVEILS NEW YORK’S ELECTRONIC EDITION RISING STARS NEWSPAPER 71486 01068 0 CNYB 03-23-09 A 2,3 3/20/2009 8:09 PM Page 1 PERSONAL APPEALS: Formerly homeless teens IN BRIEF Robert Tucker, Tyara Kellman (middle) and Diasia Owens make THE BELEAGUERED ART MARKET MAY BE fundraising calls for SHOWING SIGNS OF LIFE. NEW YORK’S Covenant House. annual Asian Art Week ended last Friday with the auction houses reporting strong sales. Christie’s auction of fine Chinese art from the Arthur M. Sackler collections sold 99% of its lots for a total of $10.8 million, more than double the sale’s high estimate of $5.2 million. And its fine Chinese ceramics and works of art sale hauled in $15.9 million, well over the $10.7 million high estimate. Sotheby’s two Asian art sales totaled $7.2 million, within the expected range of $6.7 million to $9.8 million. LOCAL 32BJ OF THE SERVICE EMPLOYEES INTERNATIONAL UNION IS considering buying 72 Wall St., one of the two buildings that troubled insurer AIG is attempting to sell, according to the organization’s broker, Mark Weiss, an executive vice president at Newmark buck enn Knight Frank. Last week, AIG said it is was evaluating the sale of 72 Wall St. and 70 Pine St., which are connected by a bridge, as part of its divesture strategy. Mr. Weiss says the union is exploring numerous options, including a purchase or a lease. It currently rents 300,000 square feet at 101 Sixth Ave., and its lease expires in 2011. Next month, the ASPCA will encour- age animal lovers across the country to THE PIERRE HOTEL IS GEARING UP FOR ITS hold their own fundraisers, like bake sales REOPENING IN JUNE AFTER A $100 MILLION Donors: Prepare or dog washes, for the organization. Their renovation that closed the stately property more efforts will then be documented on the as- than a year ago.The grande dame will also sociation’s Web site, giving the donors unveil two new dining venues later this their 15 minutes of fame. The ASPCA summer. Le Caprice, a celebrated eatery in hopes to raise $100,000 the first year. London, will open at the Pierre, and a cocktail for the hard sell While every little bit helps, such efforts lounge, 2 East, is being built off the Fifth may not be enough. New Yorkers gave Avenue lobby.The hotel will open with 189 more to charity in 2008 than residents of guest rooms and suites, and it says room rates other states,but this year they plan to make will begin at $895. As contributions tumble, nonprofits deeper cuts in their giving than donors in turn to creative, less costly strategies other states, according to a recent Cygnus CORRECTION Applied Research Inc. survey. fundraising costs wherever they can by Jay Sugarman was not a co-founder of real estate fund Starwood BY MIRIAM KREININ SOUCCAR Spending less Capital Group. This fact was misstated in a March 9 story on cash dropping the bells and whistles at galas, or shortfalls and other borrowing troubles at his real estate lending even scrapping big parties altogether. with that in mind, local charities are company, iStar. donors to Covenant House New York, “If we want to meet our fundraising trying to save money even as they try to the city’s largest homeless shelter for run- goals, we have to find new ways to do it,” raise it.