Note 9 - Incentive Compensation Plan

9 Months Ended

Sep. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

9.    Incentive Compensation Plan:

On September 13, 2013, the Board declared the Special Dividend in the amount of $98,685,000 or $66.56 per share of which approximately $68,000,000 or $45.86 per share will be paid in cash. The balance of the Special Dividend will be payable in the form of cash proceeds from any further asset dispositions effected prior to payment of the Special Dividend, Dividend Notes, interests in a limited liability company to which Gyrodyne may transfer its remaining assets (or into which it may merge), or a combination of such forms at the discretion of the Board. The Special Dividend will be payable on December 30, 2013 to shareholders of record as of November 1, 2013. The declaration of the cash portion of the dividend also required cash payment to participants of the Company’s Incentive Compensation Plan in the aggregate amount of $5,044,600 to be allocated and paid to Plan participants in accordance with Plan rules. The allocation to Plan participants are below:

PLAN PARTICPANTS	COMPENSATION		DIRECTOR FEES		Total
Board of Directors	$		$	2,850,199	$	2,850,199
Chief Operating Officer		681,021				681,021
Former Chief Executive Officer		933,251				933,251
Chief Executive Officer		-				-
Chief Financial Officer		-				-
Other Employees *		580,129				580,129
Total	$	2,194,401	$	2,850,199	$	5,044,600

*Approximately $378,345 of the $580,129 relate to 2012 employees who are no longer employees following the restructuring in early 2013.

At September 30, 2013 the liability of $5,044,600 was included in accrued liabilities. As of December 31, 2012, there were no outstanding liabilities under the Company's Incentive Compensation Plan.

As of September 30, 2013 the vested maximum benefit payable to individuals who are no longer employees of the Company, after the current payment of $45.86 per share, is as follows:

Employees	Maximum Benefit
S. Maroney- former CEO	$	259,870
All other former employees	$	107,915
Total Maximum Benefit	$	367,785