Summary
This 8-K filing from AvalonBay Communities, Inc. (AVB) reports on significant changes to the compensation of its outgoing CEO, Bryce Blair, in anticipation of his retirement from the CEO role at the end of 2011. While Mr. Blair will transition to Chairman of the Board and remain an executive officer in 2012, dedicating significant time to the company, his compensation structure is being adjusted. Notably, his 2011 long-term equity award will be entirely in restricted stock, deviating from a prior plan that included stock options. His 2012 compensation includes a substantial base salary and a target annual cash bonus, with a portion of the bonus tied to metrics traditionally used for long-term equity awards, reflecting the company's ongoing reliance on his contributions despite the leadership change.
Key Highlights
- 1Bryce Blair, Chairman and CEO, will retire as CEO effective December 31, 2011.
- 2Mr. Blair will continue as Chairman of the Board and an executive officer in 2012, dedicating at least half his working time to the company.
- 3Mr. Blair's 2011 long-term equity award will be entirely in restricted stock, changing from a previous plan of 2/3 restricted stock and 1/3 stock options.
- 4For 2012, Mr. Blair's base salary will be $700,000.
- 5Mr. Blair will receive no long-term incentive (LTI) bonus for 2012 service.
- 6A target annual cash bonus of $1,700,000 is set for 2012 service.
- 7A significant portion ($1,265,000) of the 2012 target cash bonus will be calculated using performance metrics typically associated with Mr. Blair's LTI award.