Correction: March 13 Simon Property CEO Pay Story
The Associated Press
04/30/09 - 12:13 PM EDT
In a March 13 story about executive pay at Simon Property Group Inc., The Associated Press reported erroneously that Chief Executive David Simon received compensation valued at $3.4 million in 2008. The story should have included another $2 million in performance-based stock awards, for a total of $5.4 million, representing a 3 percent decrease, not a 4.6 decrease, from 2007.
The story also erroneously reported the type of stock awards granted to the CEO in 2008. He received restricted stock, not stock options, as part of his compensation.
A corrected version of the story appears below.
INDIANAPOLIS (AP) The chief executive of mall operator Simon Property Group Inc. received 2008 compensation valued at about $5.4 million, a decrease of 3 percent from the previous year, according to Associated Press calculations of figures disclosed in a regulatory filing.
David Simon, 47, who also holds the title of chairman, received $1 million in base salary and an $810,000 bonus, according to a proxy statement filed Friday with the Securities and Exchange Commission.
Simon's salary increased from $882,308 in 2007, but his bonus dropped from $1.35 million, the filing showed.
About a third of Simon's compensation came in the form of restricted stock, which the company valued at $1.6 million at the time they were granted in February 2008.
The company also earmarked $2 million in performance-based stock awards for the CEO, but the board decided to ultimately reduce the actual payout to $578,677 for 2008. In its proxy statement, the company cited current economic conditions and its focus on cost cuts for the reduction.
Simon received $15,697 worth of perks, including $12,650 in company and matching contributions to a 401k retirement plan and $3,047 in employee and dependent life insurance premiums.
The Associated Press' compensation formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.
Indianapolis-based Simon Property Group Inc. is a real estate investment trust that develops and manages regional malls and outlet centers.
In 2008, the company's funds from operations, or FFO, rose 9.5 percent to $1.85 billion, or $6.42 per share, from $1.69 billion, or $5.90 per share, in 2007. Analysts were forecasting 2008 FFO of $6.41 per share. Revenue rose to $3.78 billion from $3.65 billion.
FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of strength for real estate investment trusts because it provides a more accurate picture of cash performance.
The company will hold its annual meeting of shareholders in Indianapolis on May 8.
