2018 Performance-Based RSU
Targets
.
Also in early 2018, the Compensation Committee established the 2018 performance-based RSU award program for NEOs, which requires growth in same store revenues at the
following potential award levels:
|
|
|
2018 Same Store
Revenue Growth
|
|
Grant Award Levels
|
Below 0%
|
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No Award
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0% - 1%
|
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50% of
Target
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1%-2%
|
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75% of
Target
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2-3%
|
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100% of
Target
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Above 3%
|
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150% of
Target
|
The Compensation Committee approved target award amounts at the 100% level for NEOs reporting to the CEO as follows:
Mr. Russell 5,000 RSUs, Mr. Reyes 12,000 RSUs, and Ms. Hughes 2,000 RSUs.
2018 COMPENSATION DECISIONS
Satisfaction of Performance Targets
.
In early 2019, the
Compensation Committee determined that with respect to the 2018 annual incentive bonuses performance targets, the company had achieved a 1.5% and 2.6% year-over-year increase in same store revenues and Core FFO per share, respectively. Since Core
FFO per share growth in 2018 satisfied the growth threshold approved by the Compensation Committee for annual cash incentive bonuses for our CEO and all other NEOs, annual cash bonuses were awarded to all of our NEOs. Since the company achieved 1.5%
in Same Store Revenue growth, RSU awards to NEOs reporting to Mr. Havner, RSUs were awarded to those NEOs as described below.
2018 CEO
Compensation
.
In recognition of Mr. Havners success in achieving our corporate goals and driving shareholder value during 2018
despite a challenging operating year, the Compensation Committee approved a cash bonus of $2,000,000 (100% of target), and an award of 25,000 RSUs (which vest in equal installments over five years starting on the first through fifth anniversaries of
the grant date), but did not grant any options.
2018 Compensation for NEOs other than our CEO
Base Salaries.
Base salaries for 2018 for
Mr. Reyes, Mr. Russell, and Ms. Hughes remained unchanged from 2017 at $600,000, $600,000, and $350,000, respectively. Ms. Johnson was promoted to Senior Vice President, Chief Human Resources Officer in April 2018 and received an
increase in annual base salary from $300,000 to $400,000.
Annual Cash
Incentives
.
Since the company achieved the positive growth of Core FFO per share in 2018 for the annual incentive bonus, and after consideration of individual executive performance as assessed by
Mr. Havner, the Compensation Committee awarded the following annual cash incentive bonuses to the NEOs reporting to Mr. Havner: Mr. Reyes, $2,000,000 (250% of target); Mr. Russell, $600,000 (100% of target); Ms. Hughes,
$350,000 (100% of target); and Ms. Johnson, $400,000 (100% of target).
Public Storage 2019
Proxy Statement 41