There is too much sense of entitlement among some executives, particularly in this case where the CEO is son of one of the co-founders of the company and nephew of the other. As equity becomes less valuable expect more clamor for cash. The tone of these stories is along the lines of “How could the Board award such excessive cash when the equity is performing so poorly?” I expect on a fundamental level the poor performance of the equity is exactly why the cash award was made. Over the past five years, Simon Properties’ returns fell 29.11 percent while the S&P rose 55.77 percent.’ The Investor Relations website contains information about Simon Property Group, L.P.'s business for stockholders, potential investors, and financial analysts. Simon is an American businessperson who has been the head of 10 different companies. Writing in The New Republic, in an article entitled The Stock Market’s Down-but Guess Which Direction CEO Pay Is Going Timothy Noah added some additional data: “According to The Motley Fool, over the past year, its returns fell 15.89 percent while the S&P 500 fell 5.80 percent. Chairman, President & Chief Executive Officer, Simon Property Group, Inc. Journalist Patrick Temple-West highlighted Simon Properties in his article US executive pay bucked falling stock market in 2022 noting that shareholder returns dropped 22 percent in 2022. The Financial Times commissioned ISS Corporate Solutions to do an analysis of S&P 500 companies. The company has already gained notoriety as one of this season’s examples of excess. The risk here seems minimal for most employees since the industry of commercial real estate is struggling across the board. For example, David Simon’s OPI Incentive award was $24.25 million, which is “approximately 37% of the total pool of OPI Incentives awarded.” Shareholders are more tolerant, and rightly so, of awards given to executives other than the CEO that may leave for more lucrative jobs elsewhere. SIMON PROPERTIES LIMITED - Free company information from Companies House including registered office address, filing history, accounts, annual return. Simon Property Group was formed in 1993 when the majority of the shopping center interests of Melvin Simon & Associates became a publicly traded company. Some of the things they said in defense of the award struck me as an indictment of it. The company filed an open letter to shareholders with the SEC after both ISS and Glass Lewis recommended voting against the advisory vote on pay and other items. The company gave mammoth cash awards, called OPI Incentive awards, to 23 executives on February 10, 2022. This includes a bonus of $28 million dollars. Simon Property Group Acquisition, a blank check company formed by Simon Property Group, filed on Friday with the SEC to raise up to 300 million in an initial. Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual. Simon Properties’ Chair and CEO, David Simon, received total compensation for 2022 of $35,667,783, more than three times what he had been paid the prior year. Simon is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG).
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