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2011 NEWSMAKER: Simon collects big raise, takes on Amazon.com

IBJ Staff
December 24, 2011
Keywords
2011 Year in Review, David Simon, Simon Property Group
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Newsmakers
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Simon Property Group Inc. took a big step in 2011 to lock down its well-respected CEO, already the state’s highest-paid chief executive.

The company signed an employment agreement with CEO David Simon that will keep him as head of the Indianapolis-based company the next eight years.

The deal gives Simon, 49, a one-time award of 1 million long-term-incentive performance units—worth $120 million at the current share price—that begin vesting in six years as part of the agreement.

“David Simon is widely recognized as the leading CEO in our industry and one of the top executives in corporate America,” Simon Property said in an e-mailed statement. “The board believes it is in the best interest of SPG shareholders to secure Mr. Simon’s continued service as CEO for at least the next eight years through this equity-based retention plan with long-term vesting.”

Simon has been CEO of the real estate investment trust since 1995.

Simon Simon

He received a pay package of cash, stock and perks valued at $24.6 million for 2010. About $13.3 million came in the form of stock awards that will pay out only if Simon achieves certain targets in the future.

Shortly after landing his long-term deal, Simon aimed his famous ire at Amazon and its sales-tax advantage. The company filed suit against the Indiana Department of Revenue in an attempt to force the state to collect sales taxes from Amazon.com Inc.

The mall powerhouse said it filed the suit not to collect “monetary damages,” but to level the playing field for Indiana’s brick-and-mortar retailers, including the tenants at its 27 Indiana shopping centers.

David Simon has made no secret of his annoyance at the tax advantage Amazon enjoys, summing up his position at an address to the Economic Club of Indiana in 2010.

“[The] Internet has a distinct advantage, which in my opinion is unfair,” he said at the time. “And hopefully we’re looking for fairness in our tax system. If you sell it in the physical world versus the virtual world, it ought to be the same. We need to level the playing field tax-wise.”•

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  1. Just because someone supports the project, they are a PR shill for the developer? Myself and everyone I know has no connection whatsoever to any developer. We just want Broad Ripple to move forward and develop, not stay stagnant.

  2. And the failure on the part of Indiana GOP to allow an expansion of Medicaid had nothing to do with Indiana hospitals' financial woes?

  3. It would have been nice if they could have arranged for at least some of Zaxby's menu to be sold at the concession stands as part of the marketing campaign.

  4. Get the feeling Browning has some PR presence on the message board this morning. I don't know a single person in the neighborhood who supports this project.

  5. Grew up in Warfleigh, which is the neighborhood directly across College from the proposed development. I am against the proposed project for several reasons: 1) Traffic Flow -- College is already a mess, especially with the new lane guidance which makes the southbound left lane 'turn only' at Broad Ripple Ave. Not to mention the backups at 64th and College. If this is in fact a Whole Foods, I would expect a steady stream of cars pulling in and out, either off College or 64th Street which are both bad already. 2) Use of TIF funds. I though TIF funds were for under-developed areas, to help bolster property tax rolls for the city. I agree with Barth that this area will do just fine letting market forces dictate what is developed. 3) Specialty Grocer Overkill. There is already a Fresh Market a mile south and a Whole Foods 2 miles north. This store is not needed. Frankly I shocked that the Whole Foods site selection criteria supports a store right here 4) Hurts the Character of the Neighborhood. This type of development, along with the (hideous) parking garage down the street are out of character with the history and fabric of this area. Broad Ripple has succeeded because it was quirky and different. It would be a shame if the city gets involved and helps support ANOTHER project that aims to turn Broad Ripple into some kind of manufactured urban center.

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