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Simon says court should dismiss CEO pay case

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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.

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  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.

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