REITs reforming exec compensation practices in wake of shareholder criticism
From the New York website: 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