IBJNews

Simon says court should dismiss CEO pay case

Back to TopCommentsE-mailPrintBookmark and Share

Simon Property Group Inc., the biggest U.S. owner of shopping malls, told a Delaware judge that an investor lawsuit over executive pay should be thrown out now that the company has rewritten the compensation plan.

The Louisiana Municipal Police Employees Retirement System sued Indianapolis-based Simon Property and its board in August 2012, claiming they wrongly amended a 1998 stock incentive plan by awarding CEO David Simon a long-term package with a $1.25 million annual salary, a 200-percent bonus and $120 million in incentive payments.

Delaware Chancery Court Judge J. Travis Laster in Wilmington Tuesday held off on making an immediate decision in the case after hearing arguments from the company and the pension fund.

In a letter last month to Laster, David Simon’s lawyer Donald J. Wolfe Jr. said the company’s stock incentive plan had been revised and approved by the board.

“We think it’s completely resolved,” Lewis R. Clayton, a lawyer for the directors, told Laster Tuesday. “The plaintiffs have won.”

The pension fund wants the case to continue.

“There is still relief we can get,” said Stuart Grant, a lawyer for the plaintiffs. The company could be compelled to make more disclosures, he said.

Simon Property has interests in 325 properties in North America, Europe and Asia, with 5,500 U.S. employees.

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:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
ADVERTISEMENT