8-KLeadership ChangesExhibits & Filings

DIGITAL REALTY TRUST, INC. 8-K Report, Executive Changes (Jan 17, 2018)

Filed January 17, 2018For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) has announced a key executive appointment, naming Erich Sanchack as Executive Vice President, Operations, effective January 25, 2018. This appointment brings in a seasoned executive with extensive experience in the telecommunications and aerospace sectors, having previously held senior roles at CenturyLink and Lockheed Martin. Mr. Sanchack's background in operations and new market development is expected to bolster Digital Realty's capabilities in managing its global data center infrastructure and expanding its services. The company has structured a comprehensive employment agreement for Mr. Sanchack, including a competitive base salary, a significant performance bonus target, a substantial sign-on bonus, and considerable equity awards. These incentives are designed to attract and retain executive talent, aligning Mr. Sanchack's compensation with the company's performance and long-term success. The agreement also outlines severance provisions in specific termination scenarios, providing clarity on executive compensation policies.

Key Highlights

  • 1Appointment of Erich Sanchack as Executive Vice President, Operations, effective January 25, 2018.
  • 2Mr. Sanchack brings extensive experience from leadership roles at CenturyLink (Senior Vice President, IT Solutions and New Market Development) and Lockheed Martin (Vice President, Competitive Enhancements).
  • 3Initial annual base salary for Mr. Sanchack is set at $445,000.
  • 4Eligible for an annual cash performance bonus targeted at 100% of his base salary.
  • 5Received a one-time sign-on bonus of $562,000, with pro-rata repayment obligations under certain voluntary resignation or 'for cause' termination scenarios within the first year.
  • 6Significant equity awards granted, including time-based and performance-based profits interest units (or RSUs) valued at approximately $445,500, $904,500, and a new hire award of approximately $750,000.
  • 7Employment agreement includes severance provisions for termination without 'cause' or by Mr. Sanchack for 'good reason', death, or disability.

Frequently Asked Questions

Erich Sanchack has been appointed as the Executive Vice President, Operations for Digital Realty, effective January 25, 2018. He brings a wealth of experience from his previous roles, including Senior Vice President of IT Solutions and New Market Development at CenturyLink, and Vice President of Competitive Enhancements at Lockheed Martin.

Mr. Sanchack's compensation includes an initial annual base salary of $445,000, an annual cash performance bonus targeted at 100% of his base salary, a one-time sign-on bonus of $562,000, and substantial equity awards valued at approximately $2.1 million in total (combining initial and new hire awards). There are conditions attached to the sign-on bonus repayment and severance clauses in his employment agreement.

The employment agreement has an initial term of one year and will automatically extend for an additional year at the end of the initial term, unless either party provides notice of non-renewal.

Yes, Mr. Sanchack is required to repay a prorated amount of the $562,000 sign-on bonus if he voluntarily resigns or if Digital Realty terminates his employment for 'cause' within one year of his start date.