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Simon CEO compensation jumps to $24.6 million

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Simon Property Group Inc.’s board is working on a long-term employment agreement with Chairman and CEO David Simon, whose compensation rose more than fivefold last year.

Simon received $24.6 million in compensation in 2010, the biggest part of which were stock awards that totaled $19.5 million, according to the biggest U.S. mall owner’s proxy statement filed Friday. The CEO’s total compensation was $4.6 million in 2009.

The compensation committee of Indianapolis-based Simon Property’s board is attempting to structure a long-term deal to keep Simon as leader of the company “for a substantial period of time,” according to the proxy statement. The proxy indicated Simon hasn’t been paid enough.

“The committee has considered for several years that David Simon’s compensation has not been commensurate with his contributions to our success and creation of long-term stockholder value,” the company said in the filing. “The committee is aware that David Simon’s compensation has been significantly less than the compensation of chief executives of many private and publicly held real estate companies as well as non-real estate companies of comparable size and complexity, many of which have not performed as well as we have.”

Simon, 49, son of the company’s co-founder, the late Melvin Simon, has been CEO since 1995 and chairman since 2007. Simon Property shares gained 25 percent last year as revenue rose 4.8 percent, to $3.96 billion. The share increase was in line with the Bloomberg REIT Index.

The company’s market value was $59 billion in 2010, compared with $48.8 billion in 2006, according to the proxy.

Simon Property ended its pursuit of rival General Growth Properties Inc., the second-biggest U.S. mall owner, last year after being rebuffed by the Chicago-based company. General Growth, in bankruptcy at the time, favored a rival proposal to keep it independent and proceeded with that deal.

Simon Property bought Prime Outlets Acquisition Co. in August for $2.3 billion to expand its outlet-mall business.

The company abandoned a takeover pursuit of Capital Shopping Centres Group Plc in January after the London-based company declined to share due-diligence information. Purchasing Capital Shopping would have enabled Simon to enter the U.K., Europe’s largest economy outside the euro region.

Simon Property fell 43 cents Friday morning, to $105.94 each. The shares were up 7 percent this year through yesterday.

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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