The Business Journal scooped the Dayton Daily News with the news that NCR will be moving its C-Level suite to NYC. Dayton will lose maybe 100 employees- but all will be the 6 and 7 figure paychecks, taking a sizable bite out of Dayton’s income tax revenue.
However, the zinger is that the State of New York gave NCR a $1.5 million handout to suck our city dry. This kind of corporate welfare needs to stop. Why should Dayton suffe because NYC can afford to lure our highest dollar execs with their tax money.
Ohio should sue New York for this poaching. Of course, Mike Turner won’t step in to stop it- NCR is his largest contributor.
NCR to move executive offices into New York City facility – Dayton Business Journal:
NCR Corp. is moving its executive offices to the Big Apple after being wooed by New York officials with incentives.
For the past three years, New York State Assembly Speaker Sheldon Silver has pitched to Bill Nuti, New York resident and NCR’s chief executive officer, the merits of moving the company’s executive offices to Manhattan, which include $1.5 million in relocation assistance.
“Although NCR’s headquarters were located in Dayton, it was clear to me that Bill was and is a New Yorker at heart,” Silver said. “In the spring of this year, after little prodding — just a little — Bill informed me that NCR was ready to make the move. Now, this ‘New Yorker at heart’ will be a ‘New Yorker at work’ here in the ‘Business and Financial Capital of the World.”
New York officials held a press conference in October to announce the signing of NCR’s lease in the new 7 World Trade Center building, where the company will have 200 employees…
…The company maintains about 2,000 employees in Dayton.
New York Gov. Eliot Spitzer said the signing of this lease is significant because it demonstrates that Manhattan is the magnet for senior corporate decision makers.
“This lease signing is different because having a significant presence of corporate leadership here shows what we represent,” Spitzer said…
When Dayton is already suffering from drops in income tax, this is just another nail in the coffin, being driven by tax dollars from another state.
The annual lease payments in NYC for the 40,000 square feet will be $2.8 million- costing NCR shareholders even more money, just so the overpaid CEO can siphon off more cash, and live in NYC and not have to come to Dayton. How can this be a fiscally sound move for anyone involved? Shareholders, taxpayers, and the City of Dayton- all screwed in yet another instance of poor decision making based on our current lassiz faire attitude about CEO pay and corporate welfare.
Again- the only kind of corporate tax credit I believe should be allowed is one based on the number of employees that can walk to work.