Simon Property Group Inc. changed the pay package of CEO David Simon amid pressure from shareholders,
the
Wall Street Journal
reported.
Even after the change, Simon remains one of the most highly paid executives in the real estate investment trust industry, the report noted.
In 2012, Simon received total compensation of $13.2 million, plus a $120 million retention grant that vests over eight years. In 2011, his total compensation was $10.5 million. Last year, his base salary rose to $1.25 from $1.21 million in 2011, and his cash bonus remained at $4 million, the
Journal
article said.
The board made changes to the retention grant and other stock grants, the report noted. Under the changes, only 50% of the retention grant will vest if he is terminated without cause or resigns for good reason within four years after 2011, instead of two years. After that, the grant will vest in proportion to his years of service as per the eight-year contract.
Shareholders last spring approved a resolution that the pay package was too large, but the vote was “advisory and nonbinding,” the
Journal
article said.
Company officials contend that the company’s performance under Simon has justified the pay package. Shareholder returns have increased 570%, including dividends, in the past decade, the
Journal
article said. (Source:
Wall Street Journal,
April 5, 2013.)
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