Hot lunch…

November 16, 2004

How much does a decent lunch cost in Newark, N.J.? A company owned by IDT Corp. Chairman Howard Jonas’ son, Samuel, collected $908,000 from his father’s company for providing an on-site cafeteria at the company’s Newark headquarters as well as related catering services, according to the company’s recent proxy. That’s a significant jump from the $664,000 Junior’s company received last year, according to the proxy (though in last year’s 10-K the company said the bill was $812,000, so it’s anyone’s guess as to which number is more accurate).

Unfortunately, this is just one example of the related party deals going on at the company, which take up nearly three pages in the recent proxy — a page longer than last year’s proxy. Another one that stands out is the company’s relationship with board member (and former Massachusetts governor) William Weld. In fiscal 2004, IDT invested nearly $500,000 in Leeds Weld & Co., a New York-based investment fund where Weld is a principal.

Posted in: Disclosures, ESG, M&A

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