Shareholders Reject Kilroy Realty's Executive Compensation Plan
May 23 2012 - 4:55PM
Dow Jones News
Shareholders in Kilroy Realty Corp. (KRC) rejected the office
and industrial landlord's executive compensation plan which
provided Chief Executive and founder John Kilroy with a $1 million
base salary and $2.5 million in equity awards, according to a
regulatory filing.
The vote, held last week during the company's annual meeting, is
non-binding. However, it marked the second consecutive year that
shareholders rejected Kilroy's compensation package even after the
company took steps to address some concerns voiced by investors and
proxy governance firms. Kilroy is also the second REIT this week
after Simon Property Group Inc. (SPG) to disclose that investors
cast a no vote on its compensation agreement.
Institutional Shareholder Services and Glass Lewis & Co.
called on investors to vote against the plan because the company
didn't make enough strides to link remuneration with performance.
"The biggest concern remains; the company has not addressed the
underlying problem of whether executive pay is properly aligned to
performance," Glass Lewis said in a report. "We do not believe the
current structure for granting cash and equity awards properly and
sufficiently establishes this link."
Kilroy's stock closed up 21 cents to $46.33 Wednesday. It is up
21.7% in the year to date.
-By A.D. Pruitt, Dow Jones Newswires; 212-416-2197;
angela.pruitt@dowjones.com
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