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Paramount Group, Inc. (NYSE:PGRE), a $1.48 billion market cap real estate investment company, disclosed Tuesday that it has entered into a separation agreement with Wilbur Paes, its former Chief Operating Officer, Chief Financial Officer, and Treasurer, following his previously announced departure effective May 15, 2025. According to InvestingPro data, the company currently trades at $6.21, near its 52-week high of $6.62, despite facing profitability challenges.
According to a statement based on the company’s SEC filing, Mr. Paes will receive a lump sum payment totaling $2,494,723, subject to applicable tax deductions and withholdings. This amount includes $2,050,000, representing one year of base salary and the average annual incentive compensation paid to Mr. Paes over the past three fiscal years, a pro-rata 2025 annual incentive compensation payment of $371,712, and a health care payment of $73,011.
Under the terms of the separation agreement, Mr. Paes’s outstanding equity awards will vest in accordance with his employment contract and the separation agreement. This includes 817,187 service-based long-term incentive plan (LTIP) units, 227,825 service-based appreciation only LTIP (AOLTIP) units, and 40,525 performance-based LTIP units that are earned but remain subject to service-based vesting conditions. He will also remain eligible to earn a pro-rata portion of 450,282 performance-based LTIP units and 1,621,973 performance-based AOLTIP units, contingent on the attainment of performance vesting conditions at the end of the applicable performance period.
Mr. Paes remains subject to certain restrictive covenants, including non-solicitation, non-interference, and non-competition clauses, as stipulated in his employment agreement. The separation agreement also includes a general release of claims between Mr. Paes and the company group.
This information is based on a press release statement included in Paramount Group’s recent SEC filing.
In other recent news, Paramount Group reported first-quarter 2025 results with a core funds from operations (FFO) of $0.17 per share, surpassing consensus estimates by $0.01. The company achieved revenue of $187.02 million, exceeding forecasts by $8.49 million, although earnings per share (EPS) were -$0.05, meeting expectations. Paramount Group’s leasing activity showed improvement, particularly in New York, with an occupancy rate increase to 87.4%. Additionally, Evercore ISI analyst Steve Sakwa upgraded Paramount Group’s stock rating from In Line to Outperform, setting a new price target of $8.00, reflecting a potential 48% upside. This upgrade is based on a detailed asset valuation and the board’s active search for strategic alternatives. Paramount Group’s board has formed a committee to explore strategic options, assisted by Bank of America, while announcing changes in its executive team. These developments indicate the company’s commitment to enhancing shareholder value amidst its strategic review.
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