Enticement for nearly another decade
America’s largest Real Estate Investment Trust (REIT), Simon Property Group, has offered to retain current Chief Executive Officer and Chairman David Simon one million shares as enticement to sign a minimum eight year contract.
The retention award value at the time of the offer was $120.3 million, according to filing notes with the US Securities and Exchange Commission.
The long-term incentive performance units, which are like shares once they are earned and vested, will be doled out in three stages beginning in year six, according Reuters.
Performance program to offer $12 million
David Simon was also offered to remain in the incentive performance program which awards the top eight Simon Property Group executives $35 million under the 2011 program which will be based on performance from 2011 to 2013, according to the SEC filing. As CEO, his share of the performance package is roughly $12 million in addition to his $1.25 million base salary.
MSNBC reports that he also is eligible for an annual target cash bonus of 200 percent of his base salary, or another $2.50 million, if he meets certain performance goals, according to the filing.
From $1.5 billion to $42 billion
David Simon became CEO in 1995, just two years after Simon Property Group went public. The SEC filing notes that upon his becoming the CEO, the market capitalization was $1.5 billion. On the day the Simon Property Group Board and its Compensation Committee approved the eight year offer, the market capitalization exceeded $42 billion with the industry expectation that this number will continue to rise.