D
ouglas Elliman is cutting ties with corporate jet perks as part of its cost-cutting efforts. The company has notified Vector Group, its former parent company, that it plans to terminate an agreement allowing it to lease aircraft on a per-flight basis. This move comes after the sudden retirement of CEO and chairman Howard Lorber, who was also president and CEO of Vector Group.

    Lorber's departure is effective immediately, with Michael Liebowitz, a director since the firm spun off from Vector in 2021, taking over as his successor. The decision to cancel the lease agreement will save Elliman around $2 million annually, on top of the $6 million it has spent using Vector's jets since 2022.

    The move is part of Elliman's efforts to reduce expenses and allocate resources towards more vital opportunities. This includes enhancing agent services and shareholder value. The company has faced criticism from a shareholder who called for an end to jet usage and Lorber's tenure as chairman, citing the firm's high costs and reliance on Vector Group.

    Elliman has implemented various cost-cutting measures in recent years, including laying off 100 employees, ending expensive corporate sponsorships, and renegotiating office leases. The company has also ended its sponsorship deal with Art Basel in Miami and Madison Square Garden, but remains a major sponsor at the Hampton Classic Horse Show.