BXP Dangles $25M Bonus to Its Chief Executive Officer

BXP is struggling on the stock market, but a turnaround could lead to a nice Christmas bonus for chief executive officer Owen Thomas… in 2029.

The leader of the developer was granted a bonus from the board of directors that could be worth as much as $25 million, Crain’s reported. To receive the full amount, however, Thomas will need to make up significant ground on the stock market.

After making close to $14 million last year, largely in stock, the board granted Thomas additional equity through an “outperformance plan” on Monday. The grant would convert to company stock once the share price hits $90, but the stock would need to hit $118 by December 2029 for Thomas to receive the maximum bonus.

That will be easier said than done. Despite a 50-million-square-foot portfolio dominated by office properties in recovering markets, BXP’s stock has languished, down 7 percent year to date and 35 percent from its pre-pandemic level. As of Wednesday morning, it’s trading around $69 per share.

Back in September, the developer cut its dividend by 30 percent to help pay for a $2 billion office tower going up at 343 Madison Avenue. The dividend dropped from 98 cents per share to 70 cents per share, which is expected to keep $50 million in BXP’s coffers each quarter.

Global insurance and investment firm C.V. Starr is in agreement to lease roughly a third of BXP’s 1-million-square-foot development.

A month later, BXP and the Moinian Group managed to refinance its debt at 3 Hudson Boulevard after falling into maturity default. JPMorgan Chase provided the developers with a $108 million loan at the site of a planned skyscraper in Hudson Yards

Additionally, BXP and Delaware North secured a $465 million refinancing loan for a portion of the Hub on Causeway in Boston. The company is also moving ahead with a 12-story trophy office project in Washington, D.C.’s beleaguered market.

— Holden Walter-Warner