Paramount Group CFO, GC resign; office REIT launches strategic review

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Paramount Group CFO, Treasurer and Chief Operating Officer Wilbur Paes and General Counsel Gage Johnson stepped down from their roles at the company and its affiliates on May 15, the real estate investment trust said in a Monday securities filing.
The real estate investment trust, which owns office properties in New York and San Francisco, appointed its SVP and Chief Accounting Officer Ermelinda Berberi to the role of CFO and treasurer and tapped its Vice President, Counsel, Timothy Dembo for the role of SVP, GC and secretary, according to a Monday press release. All appointments were effective May 15.
The REIT simultaneously announced its board has initiated 'a review and evaluation of strategic alternatives to maximize shareholder value.' The review comes as the company's 'board and management team remain focused on closing the persistent gap between the company's public market valuation and our assessment of its intrinsic value,' CEO and Chairman and President Albert Behler said in a statement included in the release.
The New York City-based REIT, a major office landlord in San Francisco and New York, is evaluating 'a comprehensive range of strategic alternatives' as part of its review, Behler said Monday in his statement. That could include a potential sale of the company or a joint venture, The Wall Street Journal reported Monday.
Paramount Group did not immediately respond to requests for comment.
The REIT has engaged Bank of America Securities to serve as its financial advisor and tapped Latham & Watkins LLP to act as its legal advisor, working in tandem with a 'transaction committee' comprised of independent directors to review the company's options, according to the Monday release.'There is no set timetable for completing the strategic review and no assurance can be given as to its outcome,' Paramount said of the review in its Monday release.
The abrupt executive departures and review are the latest signs of struggle at the real estate trust, which has a business model that is focused on providing office spaces for the financial, media and professional services industries, according to its website. Both the review and its two recent executive appointments come as the REIT looks to regain shareholder confidence as it continues to navigate economic headwinds, including weakness in its San Franscisco portfolio, looming debt maturities and challenges stemming from the broader office sector that is still struggling to recover from the shift toward remote work.
The firm has drawn headlines regarding previously undisclosed payments to its CEO, Behler who received at least $4 million in payments for personal expenses and business interests, The Wall Street Journal reported in April.
The REIT has also struggled to retain shareholder trust and confidence amid continuing economic pressure. Paramount Group reported strong leasing activity for its most recent quarter ending Mar. 31 — leasing 283,874 square feet, its strongest quarter since Q1 2021, according to an earnings call transcript. However, its total debt inched upwards to $5.4 billion for the quarter, with 42% of its debt set to mature in 2026, according to its earnings presentation. Paramount also reported a net loss of $10 million for the quarter, compared to net income of $9.9 million for the prior year period, according to its earnings results.
Paramount's incoming CFO Berberi has served as the company's CAO since March 2017, joining the company in 2016 as its SVP of finance, according to her LinkedIn profile. Prior to Paramount Group, Berberi served as a senior manager at Big Four firm Deloitte.
The company did not detail Berberi's compensation as CFO in its Monday filing. For the full-year 2024, her predecessor Paes received total compensation of approximately $2.4 million in his role as CFO, COO and treasurer, comprised of an annual base salary of $670,000, stock awards with a value of $1.7 million, and other compensation of $52,080, according to Paramount's latest proxy statement filed in April. A 10-year veteran of the REIT, Paes served a five-year term as Paramount's CFO, and was appointed to the dual role of CFO and COO in February 2021, according to his LinkedIn profile.
Prior to succeeding Johnson as GC, Dembo served as VP, counsel for the REIT beginning in 2022, according to the Monday press release. He joined the company in 2020 from Wilkie Farr & Gallagher LLP, where he previously served as an associate, according to his LinkedIn profile. Johnson, a 16-year alum of the company, received $955,419 in total compensation for 2024 as its GC, according to the proxy.

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