REITs reforming exec compensation practices in wake of shareholder criticism

Nationwide push to link pay more closely with long-term performance

TRD New York /
Jun.June 10, 2015 05:40 PM

Real estate investment trusts around the country are reforming their executive compensation formulas after facing criticism from shareholder advocates regarding big payouts to top executives.

REITs like CBL & Associates Properties, Lexington Realty and CYS Investments are among those that have changed their pay structures in the past year, with salaries, bonuses and benefits now more closely linked to long-term financial performance.

American Realty Capital Properties also changed its practices, according to the Wall Street Journal, after accounting irregularities tied in part to its record $222 million executive compensation pool led to chair Nicholas Schorsch’s resignation and threw the company into a tailspin.

SL Green Realty recently defended its executive compensation practices – including a $16.4 million payday for CEO March Holliday in 2014 – in a response to criticism by advisory firm Institutional Shareholder Services.

John Alschuler, chair of the SL Green’s compensation committee, stood by the REIT’s executive pay scale – telling The Real Deal his job is to “keep in place one of the top management teams in American real estate.” [WSJ]Rey Mashayekhi


Related Articles

arrow_forward_ios
The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)

SL Green puts Daily News building up for sale

SL Green snags private-equity firm at
One Vanderbilt

SL Green’s locks in big bank lease at
Hudson Yards redevelopment site

The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)

Jacob Chetrit buying Daily News building from SL Green for $815M

Marc Holliday and rendering of One Vanderbilt

Sentinel Capital Partners becomes latest firm to ink deal at One Vanderbilt

Suri Kasirer

WATCH: Suri Kasirer on the influence of her father’s Holocaust stories and lobbying hard for the Vanderbilt Corridor and Cornell Tech

Lawsuits, pop-ups and ragers: Why 60 Guilders took a $25M loss on its prized Soho retail property

Savanna picks up 521 Fifth Ave for $381M

arrow_forward_ios