8-KLeadership Changes

CBRE GROUP, INC. 8-K Report, Executive Changes (Feb 21, 2013)

Filed February 21, 2013For Securities:CBRE

Summary

This Form 8-K filing by CBRE Group, Inc. (CBRE) on February 21, 2013, primarily details significant executive leadership changes and adjustments to executive compensation for the upcoming year. The most impactful information for investors is the appointment of Michael J. Lafitte as the new Chief Operating Officer (COO), effective February 14, 2013. Mr. Lafitte brings extensive experience within CBRE, having held various leadership roles since 2002, including Global President of its Services business. This appointment signifies a continuation of experienced leadership within the company. Additionally, the filing outlines the 2013 compensation packages for key named executive officers, including the CEO, CFO, COO, and CEO of the Americas division. While base salaries, performance award targets, and long-term incentive award targets have been set, notable increases were made for CEO Robert E. Sulentic and CFO Gil Borok, reflecting their roles and performance. Importantly, Mr. Sulentic voluntarily reduced his initial compensation package, demonstrating a commitment to a more conservative approach in his first year as CEO. The company also notes that a compensation consultant was involved in these decisions and further details for 2012 compensation will be provided in the upcoming proxy statement.

Key Highlights

  • 1Michael J. Lafitte appointed Chief Operating Officer (COO) effective February 14, 2013.
  • 2Mr. Lafitte has a long history with CBRE and its predecessor companies, holding various senior leadership positions.
  • 32013 compensation packages established for key named executive officers, including base salary, performance award targets, and long-term incentive award targets.
  • 4CEO Robert E. Sulentic and CFO Gil Borok received increases in their 2013 compensation.
  • 5Robert E. Sulentic voluntarily reduced his initial 2013 compensation package by $500,000.
  • 6Compensation decisions were made with the input of an independent compensation consultant, Frederic W. Cook & Co., Inc.
  • 7Additional details on 2012 executive compensation will be disclosed in the upcoming 2013 Proxy Statement.

Frequently Asked Questions

Michael J. Lafitte was appointed as the Chief Operating Officer of CBRE Group, Inc., effective February 14, 2013.

The 2013 compensation for named executive officers includes base salary, performance award targets, and long-term incentive award targets. Specific figures for the CEO, CFO, COO, and CEO of the Americas are detailed in the filing.

Yes, while the CEO's compensation was adjusted upwards to reflect his role, Robert E. Sulentic voluntarily requested a reduction of $500,000 from the initially approved compensation for 2013, citing his personal view that a lower amount is appropriate for his first year as CEO.

The company intends to provide additional information regarding the compensation awarded to its named executive officers for the year ended December 31, 2012, in the Proxy Statement for the Company's 2013 annual meeting of stockholders, scheduled for May 9, 2013.