Simon Property Group Inc., the biggest U.S. mall owner, signed an employment agreement with Chief Executive Officer David Simon that will keep him as head of the 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 today in a regulatory filing. The value of the award was $120 million, based on yesterday’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 today 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 yesterday and runs through July 5, 2019, according to the company. Simon has been CEO of the real estate investment trust since 1995.
Simon Property rose $1.35, or 1.1 percent, to $121.58 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have gained 22 percent this year, compared with a 13 percent increase in the Bloomberg REIT index.