Daddy dearest…

April 19, 2006

What’s the best way to thank your dad for steering $11 million worth of business your way? Season tickets to the Yankees? That’s a question for Gary Green, whose dad, Stephen, is chairman of New York real estate powerhouse SL Green Realty (SLG). In the proxy it filed recently, the company  added up just how much business Gary’s various companies — a cleaning service, a messenger service, a security service and a restoration company (which is included in the proxy for the first time) — have with SL Green. The $11 million in business last year is a nearly 25% increase from 2004. As the proxy notes, that doesn’t include any additional contracts that Gary’s companies have with SL Green tenants. But we’re guessing that’s another nice chunk of change. There’s other interesting related party transactions too, including the ongoing consulting arrangement for $10,500 a month with Gary’s mom, Nancy Peck.

But don’t feel so bad for dad, who received nearly 70% of all options granted to employees last year, exercised $12.4 million in stock, got a $4.6 million bonus and another $3.4 million in restricted stock. And the cherry on top? A $1.2 million tax gross up to cover the bill from the IRS.

Of course, to be fair, the stock has done very well over the past few years, so at least shareholders don’t seem to be penalized by all these cozy family deals.

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