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

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Newsmakers
Simon
                              takes on Amazon.com Melangton Daniels White in crosshairs as reformers target IPS

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. The deductible is entirely paid by the POWER account. No one ever has to contribute more than $25/month into the POWER account and it is often less. The only cost not paid out of the POWER account is the ER copay ($8-25) for non-emergent use of the ER. And under HIP 2.0, if a member calls the toll-free, 24 hour nurse line, and the nurse tells them to go to the ER, the copay is waived. It's also waived if the member is admitted to the hospital. Honestly, although it is certainly not "free" - I think Indiana has created a decent plan for the currently uninsured. Also consider that if a member obtains preventive care, she can lower her monthly contribution for the next year. Non-profits may pay up to 75% of the contribution on behalf of the member, and the member's employer may pay up to 50% of the contribution.

  2. I wonder if the governor could multi-task and talk to CMS about helping Indiana get our state based exchange going so Hoosiers don't lose subsidy if the court decision holds. One option I've seen is for states to contract with healthcare.gov. Or maybe Indiana isn't really interested in healthcare insurance coverage for Hoosiers.

  3. So, how much did either of YOU contribute? HGH Thank you Mr. Ozdemir for your investments in this city and your contribution to the arts.

  4. So heres brilliant planning for you...build a $30 M sports complex with tax dollars, yet send all the hotel tax revenue to Carmel and Fishers. Westfield will unlikely never see a payback but the hotel "centers" of Carmel and Fishers will get rich. Lousy strategy Andy Cook!

  5. AlanB, this is how it works...A corporate welfare queen makes a tiny contribution to the arts and gets tons of positive media from outlets like the IBJ. In turn, they are more easily to get their 10s of millions of dollars of corporate welfare (ironically from the same people who are against welfare for humans).

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