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NOV. 12POWER BREAKFASTJoin us for a live interview with Andrew Kimball, President & CEO, NYC Economic Development Corp. He'll share his priorities and outlook on the New York City economy, where the economy is heading, and how the EDC envisions the future for public-private partnerships.DETAILSLocation: 180 Central Park SouthCrainsNewYork.com/pb_kimball [Extracted from the article]

San Francisco-based office landlord, Spear Street Capital, has acquired a 5-story commercial property in SoHo, Manhattan for $52 million. The building, known as L'Atelier, was sold by investment firm KPG Funds and is currently occupied by various tenants, including Rumi Life and Cabin Editing Co. Spear Street Capital already owns two other properties in Manhattan and has a portfolio of over $11 billion in investments. The company has not yet disclosed its plans for the newly acquired property. [Extracted from the article]

The merger of two city landlord advocacy organizations, the Community Housing Improvement Program (CHIP) and the Rent Stabilization Association (RSA), has officially taken place, resulting in the formation of the New York Apartment Association. The new organization will be led by former Bronx Assemblyman Kenny Burgos and aims to address issues affecting both tenants and landlords, such as the voucher process, the city's zoning code, and the property tax system. The merger was likely influenced by the 2019 rent law changes and the organizations' previous collaboration. [Extracted from the article]

The Metropolitan Transportation Authority (MTA) is investing $16 million to deploy an additional 500 private security guards in the New York City subway system to deter fare evasion through emergency exit gates. The number of unarmed guards contracted with Allied Universal will be doubled to 1,000 over the next year. These guards do not issue summonses or make arrests but verbally discourage fare evaders and may call the police for intervention. The MTA sees this as a short-term strategy to capture fare revenue while exploring ways to modernize all entrances to the subway system. Fare evasion cost the MTA $285 million in 2022, with more than half occurring through emergency exits. In the first quarter of 2024, 13.6% of subway riders evaded fares, slightly down from the previous quarter. The MTA's financial situation has been affected by the indefinite pause on congestion pricing, which would have generated $15 billion for transit upgrades. [Extracted from the article]

Dr. Robert Grossman, CEO of NYU Langone Health, and Kenneth Langone, chair of the board of trustees, will retire next year. Grossman has led the institution since 2007 and has overseen its growth into one of New York City's highest-earning hospital systems. Langone, a billionaire and co-founder of Home Depot, has been the chair of the board since 1999 and will be succeeded by Fiona Druckenmiller. NYU Langone is currently searching for a new CEO to replace Grossman. [Extracted from the article]

Over 40% of shareholders of Vornado Realty Trust voted against CEO Steven Roth's $19.7 million pay package, citing a misalignment between pay and performance. This comes as Vornado reduced its dividend payout by 68% due to falling earnings. Institutional Shareholder Services recommended voting against Roth's pay, and 43% of shareholders followed suit. This vote contrasts with other public companies, where CEO pay packages have been approved with an average support of 92%. [Extracted from the article]

Louis Camilleri, the former CEO of Ferrari, has sold his penthouse in New York City to Michael Boublik, a managing director at Morgan Stanley. The penthouse, located on Park Avenue, features five bedrooms, six full baths, and one half-bath, as well as a living room with a fireplace and a skylight-topped passageway adorned with art and a Ferrari engine. The Boubliks purchased the penthouse for $8.2 million, which is a notable discount from its original listing price of $10.8 million. Camilleri stepped down from his positions at Ferrari and Philip Morris International in December 2020 for personal reasons. Boublik, who has worked for Morgan Stanley since 1990, is considered one of the country's top deal-makers in mergers and acquisitions. The penthouse was created in the mid-1980s by combining unused maids' rooms. The Manhattan residential sales market has been sluggish in recent months, with the median sale price declining by over 9% from the end of 2023. High interest rates have also affected sales of office buildings and other types of real estate. [Extracted from the article]

Manhattan office owners have invested heavily in renovations to attract new tenants, but the costs are becoming burdensome. Vornado Realty Trust, the second-largest commercial landlord in Manhattan, must spend up to $300 per square foot to entice companies to lease space in their buildings. This amounts to over $40 per square foot over a 10-year lease, which is significant considering Vornado's average rent is $100 per square foot. The high costs are eroding profit margins for Vornado and pose near-term challenges, but the company remains optimistic due to its attractive properties and limited competition in the office space market. Additionally, Vornado's CEO, Steven Roth, explained in his annual letter to shareholders why the company withdrew from bidding for a casino license, citing the potential negative impact on tenants leasing space in their recently renovated tower. [Extracted from the article]

The Metropolitan Transportation Authority (MTA) has included a commitment to send mitigation money to New Jersey as part of its final congestion pricing plan, according to MTA CEO Janno Lieber. The commitment is aimed at addressing adverse traffic effects and could help resolve New Jersey's lawsuit against congestion pricing. Lieber also discussed other topics, including the installation of tolling infrastructure, increased subway service, fare evasion, crime on the subway system, and various transportation projects. [Extracted from the article]

Marty Burger, the former CEO of Silverstein Properties, has announced the launch of his new real estate company, Infinity Global Real Estate Partners. Partnering with Andrew Farkas' Island Capital Group, the company will be based in New York and will focus on development, purchases, financing, and fund management throughout the country. Burger's new company will prioritize office-to-residential conversions and large mixed-use projects, and will also establish a debt platform to fund its developments. Burger's departure from Silverstein Properties was reportedly due to disagreements over the company's direction, with Burger preferring to broaden its portfolio. [Extracted from the article]

Former Revlon CEO, Jack Stahl, has listed his six-bedroom condominium on the Upper East Side for $10.5 million. The 4,000-square-foot unit, located at 255 E. 74th St, features three exposures, an eat-in kitchen, and a combined living and dining room. Stahl purchased the home for $8 million in 2009. Despite predictions of an increase in inventory due to the Federal Reserve's decision to hold interest rates, the surge has not yet materialized. Stahl, who also held high-profile roles at Coca-Cola, was ousted from Revlon in 2006 after failing to execute a turnaround. [Extracted from the article]

Keia Clarke, CEO of the New York Liberty WNBA team, believes that the team can compete with other entertainment options in the city. She emphasizes the importance of providing a quality on-court experience as well as an entertaining overall fan experience. Clarke has been with the Liberty for over a decade and has overseen the team's move to Barclays Center, which has helped the team feel more connected to the city. She does not see the Liberty as competing directly with the Knicks and Nets, but rather with the wide range of entertainment options available in New York. [Extracted from the article]

Auto Club Trust FSB, the Michigan affiliate of AAA, has been acquired by New York-based online banking company Grasshopper Bancorp Inc. The merger is expected to close in the first quarter of 2025, creating a financial institution with $1.4 billion in assets. Grasshopper Bank will become the exclusive bank for AAA members in Auto Club Group's 14 state territory. The transaction includes a $35 million equity raise for Grasshopper and a 4.9% ownership stake for Auto Club Group. [Extracted from the article]

McDonald's is introducing a new version of the Big Mac in the U.S., replacing the traditional beef patties with tempura-battered chicken. The chicken Big Mac, featuring the same special sauce, cheese, lettuce, and pickles on a sesame seed bun, is available for a limited time. This move reflects a broader trend in the industry towards offering more chicken options due to consumer preferences and cost considerations. The price of the chicken Big Mac in the U.S. has not been disclosed, but it currently sells for £5.29 in the U.K. [Extracted from the article]

Crain's Detroit Business has released its annual "40 Under 40" list, which recognizes young professionals who have made significant contributions to their industries and communities. The honorees, who were selected through a nomination process and editorial review, represent a diverse range of fields and are seen as future leaders. The 2024 class will be celebrated at an event on November 21st at the MGM Grand Detroit. For more information, visit crainsdetroit.com/events. [Extracted from the article]

A profile in Crain's Sept. 9 special section on Notable Black Business Leaders incorrectly referenced Kiemba Knowlin's title. His title is director, Materiel Systems Organization.Andrea Jones' profile inaccurately listed her company and her participation in the brand advisory council. Jones is president and CEO of A.Lynn LLC, which is a franchisee of Nothing Bundt Cakes. She was an appointed member of the brand advisory council from 2021-2023.Lisa Lunsford's profile listed inaccurate revenue figures for her privately held company. No new figures were given. [Extracted from the article]

Henry Ford Health is launching a $750 million fundraising campaign, its largest ever, to support its expanded campus and partnership with Michigan State University in Detroit, as well as other capital projects, research, and programs in Southeast Michigan. The health system has already raised close to $488 million since the campaign began in 2021, with significant contributions from donors such as Dan Gilbert and the Ford Foundation. The funds will be used to create innovative and environmentally friendly facilities that provide advanced care for patients and their families, while also serving the local community. [Extracted from the article]

Akron-based company Myers Industries Inc. has announced a leadership transition with the appointment of Dave Basque as interim president and CEO. Basque, a former vice president of integration and the company's material-handling business, will hold the position until a permanent replacement is found. The company did not disclose whether the previous CEO, Mike McGaugh, resigned or was terminated. Myers Industries, which manufactures plastic and metal products for various industries, employs around 2,400 people and is the largest distributor of tools and equipment for the tire and automotive service industry in the US. [Extracted from the article]

Kellie Howard, the CEO of Southfield-based law firm Collins Einhorn Farrell PC, is breaking the mold in the legal industry. As the youngest and first minority CEO at the firm, Howard is focused on attracting and retaining talent and instilling a sense of purpose in her lawyers. She acknowledges the challenges of the industry, including the difficulty of hiring and retention, and the changing perspectives of younger lawyers who prioritize work-life balance and personal identity. Howard also emphasizes the importance of workplace diversity in meeting clients' needs. [Extracted from the article]

Activity in the private-equity sector is expected to increase in the second half of 2024, as the economic outlook becomes more stable. A survey conducted by BDO found that private-equity fund managers in Chicago were more optimistic than those in other parts of the country, with 87% expecting higher deal valuations in the next six months. However, similar optimism in the past did not materialize. The first quarter of 2024 saw a decrease in the number of deals made compared to the previous year. Expected interest rate cuts may stimulate dealmaking, as private-equity funds currently hold a record $2.62 trillion of uncommitted capital. Investments in technology and healthcare sectors have been stronger in Chicago than in the overall private-equity market. The private credit market has remained active as companies seek alternative sources of financing while waiting for interest rate relief. [Extracted from the article]

Curaleaf Holdings, one of the licensed medical marijuana companies in New York, has received approval to begin recreational operations. CEO Matt Darin emphasizes the importance of local partnerships in the company's plans for the New York cannabis market. Curaleaf aims to serve the wholesale market and is looking to work with different groups. While there are concerns about competition, Darin believes that the market will not be dominated by a few companies and that there are opportunities for collaboration and symbiotic relationships. The biggest competition is the illicit market, and it will require the will of governments and law enforcement to rein it in. While there are similarities to California's struggles, Darin is cautiously optimistic about New York's potential. [Extracted from the article]

Mayor Eric Adams' personal calendars, released through a public records request, reveal his frequent meetings with high-powered executives, prospective casino bidders, and Michael Bloomberg. The calendars cover 14 months and include private dinners, phone calls, and briefings with his administration officials. The schedules highlight Adams' interactions with CEOs from various industries, such as real estate, finance, entertainment, and sports. They also provide insights into Adams' involvement in casino bidding, his obscure "Office of Innovation and Emerging Markets," and his connections to the Turkish government and representatives from other nations. [Extracted from the article]

Carlos Naudon, the president and CEO of Ponce Bank, has been appointed as the fourth member of the Gaming Facility Location Board, which will decide who receives a downstate casino license in New York City. The board, which is supposed to have five members, will choose which developers and gaming companies receive the three licenses to open casinos in the city and its suburbs. The board will consider factors such as economic development potential and commitment to diverse hiring when making their decisions. No casino applications have been submitted yet, but the board is preparing to open up bids soon. [Extracted from the article]

Dr. Brendan Carr has been appointed as the next chief executive of Mount Sinai Health System, effective early next year. Dr. Kenneth Davis, the current chief executive, will become the executive vice chairman of the Mount Sinai boards of trustees. Dr. Carr, who joined Mount Sinai in February 2020 as the head of emergency medicine, played a crucial role in guiding the system through the pandemic and improving its emergency and critical care capacities. He will be responsible for overseeing all strategic and operational areas of the system, including its hospitals, ambulatory locations, and the Icahn School of Medicine at Mount Sinai. The appointment is expected to help Mount Sinai continue to provide quality care to the diverse communities it serves. [Extracted from the article]

Melanie Hartzog, the CEO of The New York Foundling, draws on her personal experience with poverty to empower others. She wants those who interact with her organization to feel a sense of community and hope. Hartzog's first-hand experience with homelessness led her to a career in human services. The New York Foundling offers a wide range of programs and services to over 30,000 people annually. Hartzog's goal is to support individuals in reaching their full potential and recognizing their abilities. She has a personal connection to the criminal justice system and has worked on initiatives to raise the age of criminal responsibility. Hartzog's journey has led her to The Foundling, where she finds fulfillment in deepening connections with the people her organization serves. [Extracted from the article]

A penthouse condo in Chicago's Gold Coast neighborhood is up for sale for $10.8 million. The sellers, former Fortune Brands Chairman and CEO Bruce Carbonari and his wife Kate, are selling because they now live in Florida and near Detroit to be closer to their grandchildren. The condo is 5,400 square feet with additional outdoor space on the 23rd floor. The Carbonaris purchased the raw space in 2016 and worked with architects and designers to create an elegant and comfortable living space. The asking price is $1.5 million higher than the highest price paid for a Chicago-area home in 2024. [Extracted from the article]

College Now Greater Cleveland has announced that Michele Scott Taylor will replace Lee Friedman as CEO on January 1, 2025. Taylor, who has been with the organization since 2010, was promoted to president in 2023. Under Taylor's leadership, College Now has expanded its advising services and increased program revenues. Taylor plans to continue Friedman's approach of hiring good people and allowing them to innovate. She is a first-generation postsecondary student and is passionate about helping others access education. [Extracted from the article]

Chicago-based brokerage NinjaTrader has seen a surge in futures trading, with its platform growing from 500,000 users to 1.7 million in just two years. The rise in futures trading can be attributed to the accessibility provided by smartphones and the increasing financial literacy among consumers. The average age of NinjaTrader's users has fallen from 48 to 38 in the past five years, indicating a younger generation's interest in taking control of their own financial destiny. The company plans to expand internationally, with South Korea and five to six other markets being considered for its next move. [Extracted from the article]

The Piston Group, a major automotive supplier, has hired Mamadou Diallo, a former executive at American Honda Motor Co., as its new CEO. Diallo, who is Black, will be responsible for overseeing the company's operational performance, financial management, and planning. The Piston Group, founded by Vinnie Johnson in 1996, has grown to become the largest Black-owned supplier in the country, with over $3 billion in annual revenue. The company is currently involved in a legal dispute over its minority certification. Diallo brings extensive experience in the automotive industry, including leading Honda through a post-pandemic recovery and the launch of electric vehicles. [Extracted from the article]

Lia Majid, a recent business school graduate, is on the hunt for another company to run after selling her first business. She is part of a trend of would-be CEOs searching for businesses to acquire. Majid is targeting companies with annual EBITDA of $600,000 to $2 million, and she has already started contacting potential candidates through email campaigns and her personal website. Illinois is a fertile ground for these searches, with 16 companies being acquired by searchers in the state in 2020 and 2021. Majid prefers searching on her own to avoid the negative reputation of private-equity firms and plans to fund the purchase with a loan. [Extracted from the article]

Fabric and crafts retailer Joann Inc. has announced the appointment of an interim CEO, Michael Prendergast, as it begins to rebuild its leadership team following a recent bankruptcy reorganization. Prendergast, a managing director in Alvarez & Marsal's Consumer and Retail Group, brings over 20 years of leadership experience in the fashion and consumer products industries. The company has also named Chris DiTullio as chief customer officer and Scott Sekella as chief financial officer. Additionally, Joann has reconstituted its board of directors with five new members who bring extensive experience in business and retail. The company emerged from bankruptcy with its 830 store locations and 18,000-plus employees intact, and its debt reduced by half. [Extracted from the article]

Kimberly Montague has been named the first female CEO of Albert Kahn Associates Inc., a Detroit-based architecture firm founded by Albert Kahn in 1895. Montague discusses the significance of her appointment as the first woman in this role and the need for more diversity in the field of architecture. She emphasizes the importance of mentoring and working with organizations to expose students to careers in architecture and design. Montague also discusses the challenges and opportunities facing the company, including the impact of COVID-19 on office spaces and the influence of artificial intelligence in the industry. Outside of work, Montague enjoys traveling and participating in races, with her favorite being a nighttime half-marathon at Disney. [Extracted from the article]

The article reports on the highest-paid CEOs and non-CEOs in Chicago in 2023. Githesh Ramamurthy of CCC Intelligent Solutions tops the list with a total compensation of $54.5 million, largely from stock awards. Other CEOs with significant pay raises include Toby Williams of Paylocity, John Rademacher of Option Care Health, and Peter Arduini of GE HealthCare Technologies. The median pay for the top 25 CEOs increased by 40% to $21 million, mainly due to strong market performance and stock awards. Among non-CEOs, Frederick Pollock of GCM Grosvenor had the highest compensation at $50.8 million. The lists are based on data from S&P Global Market Intelligence. [Extracted from the article]

The number of CEOs in Chicago's exclusive $20 million club has nearly doubled since last year, with 14 CEOs now qualifying for membership. Githesh Ramamurthy, chairman and CEO of CCC Intelligent Solutions, leads the pack with a 6,327% increase in compensation, bringing his total to $54.5 million. Other newcomers to the club include Dave Flitman of US Foods Holding Corp, Peter Arduini of GE HealthCare Technologies, and Toby Williams of Paylocity. Median CEO pay at Chicago-area S&P 500 companies rose 11% to $14.1 million in 2023, while the national median CEO pay rose 12.6% to $16.3 million. Stock awards accounted for approximately 70% of total compensation in 2023. [Extracted from the article]

The Federal Reserve Bank of Cleveland has announced that Beth M. Hammack, a former executive at Goldman Sachs, will become its next president and CEO. Hammack will be the fourth woman to lead the Cleveland Fed and will oversee approximately 1,100 employees across offices in Cleveland, Cincinnati, and Pittsburgh. She brings over 30 years of experience in finance, capital markets, and risk management, and will become a voting member of the Federal Open Market Committee. The selection process for the new president involved public town halls and outreach to the community, with a focus on transparency and diversity. [Extracted from the article]

Ryan Hertz, CEO of Lighthouse, is leading a $32 million expansion project in Pontiac to create a comprehensive support center for those in need. The project will include two new buildings, emergency shelter beds, a social supermarket, an economic opportunity center, and community space. Hertz is also focused on increasing affordable housing options and has plans for $42 million in projects that will add nearly 100 new affordable units. Hertz recently attended the Mackinac Policy Conference and shared a humorous story about his previous experience staying on a fishing boat due to a lack of hotel availability. This year, he has a hotel room and is participating in a bike ride to Mackinaw City. [Extracted from the article]

Blue Cross Blue Shield of Michigan has announced that Tricia Keith will be its next president and CEO, replacing Daniel Loepp. Keith will be the first woman to lead the state's largest health insurer and only the third CEO in the last 40 years. She has been with the company since 2022 and currently serves as its COO and president of its emerging markets business. Keith takes over at a challenging time for the insurer, as rising drug costs have impacted its bottom line. [Extracted from the article]

Hyland, a software company based in Westlake, Ohio, has announced that Jitesh Ghai will be its new CEO, effective May 20. Ghai, currently the executive vice president and chief product officer for Informatica Inc., will succeed Bill Priemer, who has been the CEO since 2013 and is retiring. Ghai brings over two decades of technical and business experience, including leadership in cloud, data, and AI capabilities. Hyland has been transitioning from a software developer to a provider of cloud services, and Ghai's expertise will be valuable in driving the company's growth and innovation. [Extracted from the article]

Kelly Services Inc. is set to acquire Motion Recruitment Partners, an East Coast talent recruiting firm, in its largest acquisition to date. The deal is worth $425 million in cash, with the potential for an additional $60 million based on performance criteria. The acquisition is expected to close in the second quarter of 2024 and will add around 1,000 associates to Kelly's team. This acquisition aligns with Kelly's strategy of pursuing higher-margin, higher-growth specialties and is seen as potentially transformative for the company. [Extracted from the article]

Cole, the younger brother of designer Kenneth Cole, founded Iconix in 2005 and the Nasdaq-listed company grew to $400 million in revenue, more than $100 million in earnings, and 150 employees, including his two sons. Neil Cole, the former CEO of Iconix Brand Group, was sentenced Oct. 10 to 18 months in prison for cooking the books at his fashion powerhouse. [Extracted from the article]

Kravis, a founder of the firm considered the LBO king, faced off against them. An uptown apartment with ties to a gripping Wall Street drama of the 1980s, the high-priced tug-of-war for control of the conglomerate RJR Nabisco, has entered the market. After American Express, which he ran from 1977 to 1993, Robinson co-founded Midtown-based venture capital firm RRE Ventures, which has invested $2.5 billion in 400 startups since 1994, including fintech and crypto companies, according to RRE's website. [Extracted from the article]

One Brooklyn Health was established in 2016, after a state-commissioned report recommended that Brookdale Hospital Medical Center, Interfaith Medical Center and Kingsbrook Jewish Medical Center merge to serve central Brooklyn, which has a majority of Black and brown residents. The total deficits reported by One Brooklyn are lower than what previous reports have shown. The health system One Brooklyn Health operated with large deficits and attracted concerns about its financial stability long before the board of directors voted to remove LaRay Brown as CEO. [Extracted from the article]

Abbott Laboratories CEO, Robert Ford, has defended his company's baby formula products as lawsuits loom against the company. This comes after a jury ordered Reckitt Benckiser Group to pay $60 million in damages over allegations that its infant formula led to the death of a premature baby. Abbott Laboratories is facing similar cases, with lawsuits alleging that their cow-milk-based baby formulas can cause necrotizing enterocolitis (NEC) in premature babies. Ford has stated that Abbott will begin facing these lawsuits in July and has emphasized that their products have been beneficial to countless babies and are considered a part of the standard of care for feeding premature infants. Despite the lawsuits, Abbott's pediatric formula sales have grown 9% in the first quarter. [Extracted from the article]

Larry Goodman has been appointed as the permanent president and CEO of Cleveland Ballet after serving as interim leader since December 2023. Goodman has been praised for his efforts in stabilizing the organization and securing its future with the support of staff, dancers, the community, and the board of directors. His tenure began amidst allegations of workplace misconduct and financial irregularities involving the previous leadership. Under Goodman's leadership, the ballet has seen progress in artistic excellence, cultural improvements, financial stability, and community engagement. [Extracted from the article]

Meagan Elliott, a city of Detroit executive, has been named the new president and CEO of the Belle Isle Conservancy. She will assume her role on July 1, succeeding Maud Lyon. Elliott has extensive experience in city roles, including overseeing development and fundraising. She has led various initiatives, such as the Joe Louis Greenway Framework Plan and the disbursement of American Rescue Plan Act funds. With a background in sociology and urban planning, Elliott is well-equipped to understand the importance of Belle Isle as a park for Detroit families. The Belle Isle Conservancy operates on an annual budget of approximately $2 million and focuses on preserving, restoring, and enhancing the island's natural environment and historic structures. [Extracted from the article]

Lifeway Foods, a company known for its fermented milk product kefir, has filed a federal lawsuit against the widow and son of its founder, accusing them of stealing trade secrets and falsely associating their new company, Pure Culture Organics, with Lifeway. The lawsuit claims that Edward Smolyansky and his mother, Ludmila, used their knowledge from Lifeway to launch a competitor and marketed their firm as if it were connected to Lifeway. The Smolyanskys have been in a legal battle with Lifeway over the direction of the company, with the family seeking to oust CEO Julie Smolyansky and put the company up for sale. Lifeway's stock has been performing well, and the company reported record sales in 2024. [Extracted from the article]

Deborah Gordon has been appointed as the new chief legal officer and executive vice president of the Cleveland Clinic. She previously held positions at the Memorial Hermann Health System and Seyfarth Shaw LLP. Gordon has extensive experience in representing health systems, hospitals, and other healthcare entities in various legal matters. She will assume her new role on June 1, succeeding David Rowan, who will become a senior adviser to the Clinic's president and CEO. [Extracted from the article]