Summary
Equity Residential (EQR) announced on August 29, 2012, a significant leadership transition involving the retirement of Frederick C. Tuomi, Executive Vice President and President – Property Management, effective June 30, 2013. This change marks the end of Mr. Tuomi's tenure, with David S. Santee, currently Executive Vice President – Operations, set to assume direct responsibility for property management operations. This transition is being handled with a clear succession plan in place, as Mr. Santee has been with the company since 1994 and has held a key operational role since 2007. Mr. Tuomi's retirement package includes continued salary until his departure, eligibility for 2012 bonuses and equity awards, and prorated awards for 2013 covering his remaining six months of service. These prorated awards are substantial, amounting to $250,000 each in restricted shares/LTIP Units, share options, and a cash bonus, based on 100% of his target amounts. Furthermore, his unvested equity awards will continue to vest according to their original schedules and options remain exercisable, provided he adheres to non-competition and non-solicitation clauses, and meets the Rule of 70 criteria for continued benefits.
Key Highlights
- 1Frederick C. Tuomi, Executive Vice President and President – Property Management, will retire effective June 30, 2013.
- 2David S. Santee will assume direct responsibility for property management operations.
- 3Mr. Tuomi will continue to receive his current base salary until his retirement date.
- 4Mr. Tuomi is eligible for 2012 bonuses and equity awards, plus prorated awards for 2013.
- 5Prorated 2013 awards for Mr. Tuomi include $250,000 each in restricted shares/LTIP Units, share options, and a cash bonus.
- 6Unvested equity awards for Mr. Tuomi will continue to vest per original schedules, subject to non-compete and non-solicitation compliance.
- 7Mr. Tuomi's retirement benefits are contingent on meeting the 'Rule of 70' criteria.