Billionaire investor Carl Icahn is closing his White Plains New York office and relocating to Florida and will do so with or without his current employees.
What Happened
Icahn told his Icahn Enterprises IEP employees in a May 17 letter he will close the New York office on March 31, 2020 and will start working out of a Miami, Florida office the next day, according to the New York Post.
Icahn is 83 years old and worth more than $15 billion but has no interest in retiring, the memo said. Instead, he wants to "enjoy a warmer climate and a more casual pace" throughout the year.
Why It's Important
Icahn was born in New York and has lived there nearly his entire life.
New York State's high tax rate has resulted in many wealthy people choosing to relocate to sunny Florida where taxes are lower. Business Insider cited data from Crain's New York Business which found a person working in New York who makes $10 million a year and owns a $10 million property would save nearly $1.2 million in taxes by moving to Florida.
A source close to Icahn told Reuters his decision to relocate to Florida is more about a lifestyle change than taxes. The Wall Street lifestyle of working long hours was starting to wear him down and he enjoys playing tennis after work outside his home -- a luxury that is physically possible in New York City.
What's Next
Icahn's approximate 50 employees will be given a $50,000 relocation benefit to join him and will be compensated with the same salary and bonus they received in 2018.
Those who are not interested in flocking down south won't receive any severance, according to the New York Post.
Related Links:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
