IBJNews

Simon CEO compensation jumps to $24.6 million

Back to TopCommentsE-mailPrintBookmark and Share

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.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Can your dog sign a marriage license or personally state that he wishes to join you in a legal union? If not then no, you cannot marry him. When you teach him to read, write, and speak a discernible language, then maybe you'll have a reasonable argument. Thanks for playing!

  2. Look no further than Mike Rowe, the former host of dirty jobs, who was also a classically trained singer.

  3. Current law states income taxes are paid to the county of residence not county of income source. The most likely scenario would be some alteration of the income tax distribution formula so money earned in Marion co. would go to Marion Co by residents of other counties would partially be distributed to Marion co. as opposed to now where the entirety is held by the resident's county.

  4. This is more same-old, same-old from a new generation of non-progressive 'progressives and fear mongers. One only needs to look at the economic havoc being experienced in California to understand the effect of drought on economies and people's lives. The same mindset in California turned a blind eye to the growth of population and water needs in California, defeating proposal after proposal to build reservoirs, improve water storage and delivery infrastructure...and the price now being paid for putting the demands of a raucous minority ahead of the needs of many. Some people never, never learn..

  5. I wonder if I can marry him too? Considering we are both males, wouldn't that be a same sex marriage as well? If they don't honor it, I'll scream discrimination just like all these people have....

ADVERTISEMENT