Summary
AvalonBay Communities Inc. (AVB) announced the upcoming retirement of William M. McLaughlin, Executive Vice President – Development & Construction, expected around January 1, 2022. Mr. McLaughlin, who has served the company for over 27 years, will transition his leadership responsibilities to other executives, and the company does not plan to hire a direct replacement. This transition is structured to ensure continuity, with Mr. McLaughlin expected to provide consulting and transition services through at least March 2023, dedicating no more than 20% of his working time to the company during this period.
Key Highlights
- 1Retirement of key executive William M. McLaughlin (EVP - Development & Construction) expected around January 1, 2022.
- 2No immediate replacement planned for Mr. McLaughlin's role; responsibilities will be absorbed by existing executives.
- 3Mr. McLaughlin will provide consulting and transition services through at least March 2023, limited to 20% of his working time.
- 4Mr. McLaughlin will receive his 2021 cash and restricted stock bonuses in the ordinary course.
- 5His 2019-2021 performance award will convert to stock and cash for dividends as usual.
- 6Most equity awards will continue to vest during the consulting period, with potential pro-rata vesting of the 2021-2023 award at the end of his engagement.
- 7The retirement agreement will include standard provisions such as a general release, confidentiality, non-solicitation, and non-competition clauses.
Frequently Asked Questions
William M. McLaughlin is a long-tenured Executive Vice President responsible for East Coast development and national construction. His retirement marks the end of an era for AVB and necessitates a reallocation of significant leadership responsibilities within the development and construction divisions.
The company has stated that it does not intend to promote or recruit for a replacement for Mr. McLaughlin's specific role. His responsibilities will be transitioned to other existing executive officers, suggesting a strategy to streamline leadership or redistribute duties among the current senior management team.
While Mr. McLaughlin will receive his earned 2021 bonuses and his existing equity awards will continue to vest, he will not earn additional salary or bonuses after 2021, except for compensation related to his consulting services. This transition plan appears designed to manage costs while ensuring continuity and leveraging his expertise during the transition period.
Mr. McLaughlin is expected to enter into an arrangement to provide consulting and transition services through at least March 2023. His duties will include assisting with the handover of his responsibilities and other development-related matters, with his time commitment limited to a maximum of 20% of his working hours. Specific compensation for these services is still to be determined.