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Simon Property Group signs CEO to long-term contract

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Simon Property Group Inc., the biggest U.S. mall owner, signed an employment agreement with CEO David Simon that will keep him as head of the Indianapolis-based company for the next eight years.

Simon, 49, will receive a one-time award of 1 million long- term incentive performance units that begin vesting in six years as part of the agreement, the Indianapolis-based company said Thursday in a regulatory filing. The value of the award was $120 million, based on Wednesday’s closing share price.

“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.”

The employment agreement was signed Wednesday and runs through July 5, 2019, according to the company. Simon has been CEO of the real estate investment trust since 1995.

As IBJ reported in May, Simon Property's executive pay outclassed other Hoosier public companies in 2010. Using a new system of long-term stock awards, the company boosted total compensation by roughly fivefold for each of its top five executives.

David Simon received a pay package of cash, stock and perks valued at $24.6 million, topping all other Indiana executives. About $13.3 million came in the form of stock awards that will pay out only if Simon achieves certain targets in the future. The same is true for Simon’s other top brass.

Still, the compensation committee of Simon’s board said then that it was working on a long-term compensation package for the CEO, who members believe was underpaid relative to his peers.

“David Simon has been widely recognized as the best and most effective chief executive in an extremely competitive industry and one of the top chief executives in corporate America,” the six-member compensation committee gushed in the company’s proxy statement, released in April.

“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.”

Simon’s stock has been hot indeed. It gained 28.5 percent last year and has since risen another 22 percent. And even after a sharp decline in late 2008 and 2009, Simon’s shares are now above their value at the end of 2007.

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  • What a relief!
    I hate to think of this guy working so hard, but not having enough money to buy that ninth luxury automobile or seventh vacation home.
  • Good
    That is actually a great deal. David, now it's your turn.

    Indianapolis

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  1. I am not by any means judging whether this is a good or bad project. It's pretty simple, the developers are not showing a hardship or need for this economic incentive. It is a vacant field, the easiest for development, and the developer already has the money to invest $26 million for construction. If they can afford that, they can afford to pay property taxes just like the rest of the residents do. As well, an average of $15/hour is an absolute joke in terms of economic development. Get in high paying jobs and maybe there's a different story. But that's the problem with this ask, it is speculative and users are just not known.

  2. Shouldn't this be a museum

  3. I don't have a problem with higher taxes, since it is obvious that our city is not adequately funded. And Ballard doesn't want to admit it, but he has increased taxes indirectly by 1) selling assets and spending the money, 2) letting now private entities increase user fees which were previously capped, 3) by spending reserves, and 4) by heavy dependence on TIFs. At the end, these are all indirect tax increases since someone will eventually have to pay for them. It's mathematics. You put property tax caps ("tax cut"), but you don't cut expenditures (justifiably so), so you increase taxes indirectly.

  4. Marijuana is the safest natural drug grown. Addiction is never physical. Marijuana health benefits are far more reaching then synthesized drugs. Abbott, Lilly, and the thousands of others create poisons and label them as medication. There is no current manufactured drug on the market that does not pose immediate and long term threat to the human anatomy. Certainly the potency of marijuana has increased by hybrids and growing techniques. However, Alcohol has been proven to destroy more families, relationships, cause more deaths and injuries in addition to the damage done to the body. Many confrontations such as domestic violence and other crimes can be attributed to alcohol. The criminal activities and injustices that surround marijuana exists because it is illegal in much of the world. If legalized throughout the world you would see a dramatic decrease in such activities and a savings to many countries for legal prosecutions, incarceration etc in regards to marijuana. It indeed can create wealth for the government by collecting taxes, creating jobs, etc.... I personally do not partake. I do hope it is legalized throughout the world.

  5. Build the resevoir. If built this will provide jobs and a reason to visit Anderson. The city needs to do something to differentiate itself from other cities in the area. Kudos to people with vision that are backing this project.

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