Howard Lutnick, whose nomination hearing for U.S. Secretary of Commerce is scheduled for Wednesday, has reached a settlement related to a $50M bonus from commercial real estate firm Newmark.
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In 2017, Newmark launched its initial public offering, with Lutnick, the company’s executive chairman, ringing the opening Nasdaq bell. As part of the deal, the brokerage firm spun off from BGC Partners and acquired $847M of its shares. Lutnick claimed the company gained $500M from the deal.
However, Newmark shareholders alleged in a lawsuit that the company’s value didn't increase as a result and Lutnick’s bonus wasn't deserved.
Now, that lawsuit has been resolved, Bloomberg reported.
The terms of the settlement weren't disclosed. A Newmark spokesperson did not immediately respond to Bisnow’s request for comment.
Along with serving as the executive chairman of Newmark, Lutnick is the chairman and CEO of financial services firm Cantor Fitzgerald and BGC. However, he plans to step down from all three positions if the Senate votes to confirm his new role in the Trump administration.
Lutnick is the holder of the largest share of Newmark’s common stock. He has promised to divest his interests in the companies to comply with the government’s ethics rules, but he said he doesn't plan to sell shares on the open market.
President Donald Trump has nominated several real estate leaders to serve in his administration. Though many are still awaiting confirmation, their backgrounds could inform their policy decisions in the years to come.
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