8-KMaterial AgreementsExhibits & Filings

ESSEX PROPERTY TRUST, INC. 8-K Report, Material Agreement (Dec 28, 2007)

Filed December 28, 2007For Securities:ESS

Summary

This 8-K filing from Essex Property Trust, Inc. (ESS) on December 28, 2007, primarily announces the approval of award agreement forms under the "2007 Outperformance Plan." This plan is designed as a long-term incentive compensation program to align management's interests with those of stockholders by rewarding superior performance and value creation. The filing also details the approval of the Fourteenth Amendment to the Essex Portfolio, L.P. partnership agreement, which establishes the terms for LTIP units to be awarded under this new incentive plan. Investors should note that this report focuses on the formalization of a new executive compensation structure. The "pay for performance" element is intended to drive senior officers toward achieving specific stockholder value targets. While the specifics of individual awards are not detailed here, the underlying mechanism aims to incentivize management to outperform market expectations and enhance shareholder returns.

Key Highlights

  • 1Essex Property Trust, Inc. approved the forms of award agreements for its 2007 Outperformance Plan on December 26, 2007.
  • 2The 2007 Outperformance Plan is a long-term incentive compensation program approved by the Board on December 4, 2007.
  • 3The plan aims to align management interests with stockholders by rewarding outperformance and value creation.
  • 4It employs a 'pay for performance' structure for senior officers.
  • 5The Compensation Committee also approved the Fourteenth Amendment to the Essex Portfolio, L.P. agreement.
  • 6This amendment specifically addresses the terms of LTIP units to be awarded under the 2007 Outperformance Plan.
  • 7The filing includes the award agreement forms (Exhibit 10.1) and the Fourteenth Amendment (Exhibit 10.2) as part of the report.

Frequently Asked Questions

The primary purpose of the 2007 Outperformance Plan is to incentivize and reward senior officers of Essex Property Trust, Inc. by aligning their compensation with the creation of stockholder value and encouraging superior performance. It's structured as a 'pay for performance' program.

LTIP units, or Long-Term Incentive Plan units, are a form of equity-based compensation being established under the new 2007 Outperformance Plan. The Fourteenth Amendment to the Essex Portfolio, L.P. agreement outlines the specific terms and conditions for these units.

The plan is designed to benefit shareholders by directly linking management's compensation to performance metrics that should lead to increased stockholder value. By encouraging senior officers to outperform, the company aims to drive growth and returns that align with shareholder interests.

This particular 8-K filing does not detail the specific financial targets or performance metrics for the 2007 Outperformance Plan. It focuses on the approval of the plan's documentation and award agreement forms. Further details on performance metrics would likely be found in proxy statements or other disclosures related to executive compensation.