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2012 NEWSMAKER: CEO keeps Simon stock surging

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Newsmakers
2012
                              NEWSMAKER: School librarian Ritz won with grass-roots campaign 2012
                              NEWSMAKER: Crime stance returns Hogsett to political spotlight 2012 NEWSMAKER:
                              Council Dem Mahern plays role of antagonist 2012 NEWSMAKER: CEO keeps Simon stock surging 2012 NEWSMAKER:
                              Miles adds to diverse business, sports career Other 2012 news
                              of note

If there were an MVP for local CEOs, David Simon would again find himself at or near the top of the list in 2012.

Simon Property Group Inc. in 2012 joined the Standard & Poor’s 100 Index, a listing of the nation’s largest and most established companies that includes Apple, Coca-Cola and McDonald’s. The Indianapolis-based company is the only real estate company on the list and is now the largest real estate company in the world.

david-simon-15col.jpg (Bloomberg photo)

At a recent enterprise value of $71 billion as calculated by Yahoo Finance, Simon Property is worth more than Starbucks ($39 billion), Nike ($42 billion) and News Corp. ($64 billion)—three of the most prominent fellow members of the S&P 100.

And the Yahoo Finance figure actually understates the company’s enterprise value, a Simon spokesman told IBJ in May, since it excludes unconverted ownership units and recently issued debt.

David Simon’s savvy acquisition over the years of a portfolio of outlet malls helped make Simon Property Group the best-performing retail real estate stock of the last five years and prompted the hedge fund manager Bill Ackman to push for Simon to acquire rival General Growth Properties, a deal that did not materialize.

In recognition of the company’s blistering performance under David Simon’s watch (a 10-year return of more than 600 percent), the board in 2011 granted him $120 million in restricted stock. He can collect the full grant, on top of his regular compensation, if he stays with Simon until mid-2019.

Simon, son of company co-founder Mel Simon, has been CEO since 1995 and chairman since 2007.

His retention bonus was part of a controversial new contract Simon signed in July 2011, just months before he and his wife, Jackie, paid a cool $25 million for a full-floor, 7,500-square-foot abode at 625 Park Ave. in New York City, where he now spends a chunk of his time.

Investors holding 73 percent of Simon Property Group’s shares voted against the retention package in a symbolic 2011 vote. And one group of dissident shareholders filed a lawsuit challenging the deal, arguing it was more a bonus for past performance than an incentive structure for future performance.

The company’s shares have been on an elevator ever since: The shares traded around $115 apiece when the company re-upped with its chief executive. They had risen to $156 by mid-December.

A more than 35-percent return—before considering dividends—is good enough to silence quite a few critics.•

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  1. I had read earlier this spring that Noodles & Co was going to open in the Fishers Marketplace (which is SR 37 and 131st St, not 141st St, just FYI). Any word on that? Also, do you happen to know what is being built in Carmel at Pennsylvania and Old Meridian? May just be an office building but I'm not sure.

  2. I'm sorry, but you are flat out wrong. There are few tracks in the world with the history of IMS and probably NO OTHER as widely known and recognized. I don't care what you think about the stat of Indy Car racing, these are pretty hard things to dispute.

  3. Also wondering if there is an update on the Brockway Pub-Danny Boy restaurant/taproom that was planned for the village as well?

  4. Why does the majority get to trample on the rights of the minority? You do realize that banning gay marriage does not rid the world of gay people, right? They are still going to be around and they are still going to continue to exist. The best way to get it all out of the spotlight? LEGALIZE IT! If gay marriage is legal, they will get to stop trying to push for it and you will get to stop seeing it all over the news. Why do Christians get to decide what is moral?? Why do you get to push your religion on others? How would legalizing gay marriage expose their lifestyle to your children? By the way, their lifestyle is going to continue whether gay marriage is legalized or not. It's been legal in Canada for quite a while now and they seem to be doing just fine. What about actual rules handed down by God? What about not working on Sundays? What about obeying your parents? What about adultery? These are in the 10 Commandments, the most important of God's rules. Yet they are all perfectly legal. What about divorce? Only God is allowed to dissolve a marriage so why don't you work hard to get divorce banned? Why do you get to pick and choose the parts of the Bible you care about?

  5. Look at the bright side. With the new Lowe's call center, that means 1000 jobs at $10 bucks an hour. IMS has to be drooling over all that disposable income. If those employees can save all their extra money after bills, in five years they can go to the race LIVE. Can you say attendance boost?

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