SEC Filings

DEF 14A
ACADIA REALTY TRUST filed this Form DEF 14A on 03/26/2019
Entire Document
 

 

1-Year

3-Year

5-Year

10-Year

Acadia Realty Trust (AKR)

(9.44

)%

(19.78

)%

15.96

%

145.48

%

Executive Compensation Peer Group Median

(18.01

)%

(21.12

)%

(4.72

)%

114.30

%

MSCI US REIT (RMS) Index

(4.57

)%

8.89

 %

45.55

%

215.45

%

SNL US REIT Retail Index

(12.14

)%

(15.66

)%

12.23

%

191.87

%

SNL US REIT Retail Shopping Center Index

(16.08

)%

(22.78

)%

5.42

%

77.02

%

 

Source: S&P Global Market Intelligence LLC

 

Executive Compensation Highlights

 

The Company's success depends on developing, motivating and retaining executives who have the skills and expertise to lead a REIT that uses both a traditional core portfolio and a fund platform. The Company seeks to design an executive compensation program that supports its business model and aligns management’s interests with its shareholders and fund investors.

 

Our focus is and continues to be to maintain a strong link between our NEOs’ compensation and the Company’s performance. Highlights of our 2018 executive compensation program are outlined below and the key elements to our compensation structure are summarized in the chart that follows.

 

 

Pay-for-Performance Alignment - We maintain strong pay-for-performance alignment with more than 87% of our CEO’s 2018 target compensation variable and subject to the Company’s performance.

 

 

Formulaic Annual Cash Bonuses - 75% of our NEOs’ annual cash bonuses are formulaic and based on the achievement of pre-established corporate performance goals, with the remaining 25% based on individual performance goals set forth at the beginning of the year. Our cash bonus program employs challenging hurdles and may result in significant fluctuations in payouts depending on our financial and operating success each year.

 

 

Focus on Long-Term Performance and Alignment with Our Shareholders and Investors - For 2018, approximately 64% of our CEO’s target compensation was paid in the form of long-term incentive units ("LTIP Units") that are subject to additional service-based and performance-based vesting conditions. Half of the LTIP Units are subject to a long-term vesting period of five-years and half are subject to the achievement of relative TSR goals over a three-year performance period (plus an additional two-year vesting period on any earned LTIP Units). Additionally, our NEOs may receive fund-based compensation if a particular investment has achieved a preferred rate of return and requires a long-term commitment from our management team given that such payouts typically involve value creation over a seven- to ten- year period before payouts, if any, are realized.

 

 

Commitment to Strong Compensation Governance - Our executive compensation program is designed to achieve an appropriate balance between risk and reward and employs good compensation governance and risk mitigation features, including:

 

 

Share ownership requirements, including 10x base salary for our CEO

 

Anti-hedging and anti-pledging policies

 

Long-term vesting requirements on equity awards

 

Caps on annual cash awards and equity award payouts

 

Multiple performance factors

 

Range of payouts (not all or nothing)


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