You may have heard that Ian Schrager has a few irons in the fire. He's redeveloping the Gramercy Park Hotel. He's working on a little project called 40 Bond. And oh yah, the company he founded, The Morgans Hotel Group, had its IPO this week. Schrager sold most of the company in the late 90's but he still walks away from the IPO with a cool $9 million in IPO proceeds and a stake in Morgans worth around $46 million. Plus, he'll stay on as a well compensated consultant:
Schrager will receive a salary of $1.07 million in 2005, $750,000 for 2006 and $500,000 for 2007 -- plus a bonus of about $1 million in 2005, and up to $750,000 in 2006 and $500,000 in 2007. He'll also get reimbursements from Morgans for business, entertaining and business-travel expenses, as well as fixed payments for use of a private aircraft; use of an automobile leased by the company; a full-time driver; and a full-time secretary, as well as complimentary rooms at any of Morgan's hotel properties." Not a bad week.
· Morgans serves cash to Schrager [MarketWatch]
· IPO Pays Big For Schrager [NYPost]