Stephen E. Budorick President + Chief Executive Officer |
TIME + DATE | PLACE | RECORD DATE | ||||||||||||||||||
9:30 a.m. Eastern Time on Thursday, May | Virtual Meeting www.virtualshareholdermeeting.com/ | March |
Items of Business | How to Vote | ||||||||||||||||||||||||||
1 | Elect nine Trustees. | www.proxyvote.com | |||||||||||||||||||||||||
2 | Approve, on an advisory basis, the compensation of our named executive officers as disclosed in the proxy statement for this meeting. | Tablet or Smartphone Scan the QR code on your proxy card, notice of internet availability of proxy materials or voting instruction form to vote with your mobile device. | |||||||||||||||||||||||||
Telephone 1-800-690-6903 Call toll-free 24/7 | |||||||||||||||||||||||||||
4 | Ratify the appointment of PricewaterhouseCoopers LLP (“PwC”) as our independent registered public accounting firm for the current fiscal year. | ||||||||||||||||||||||||||
Mail Complete, sign and date your proxy card and return it in the postage-paid envelope provided. | |||||||||||||||||||||||||||
5 | Transact any other business properly brought before the Annual Meeting. |
Page Number | ||||||||||||
Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Shareholders to be Held Virtually on May | ||||||||||||
SHAREHOLDERS WILL BE VOTING ON THE FOLLOWING MATTERS: | |||||||||||||||||||||
Agenda Item | Voting Recommendation | More Information | |||||||||||||||||||
2. | |||||||||||||||||||||
Page 46 | |||||||||||||||||||||
4. |
Board Committees | ||||||||||||||||||||||||||||||||||||||||||||
Age | Trustee Since | Audit | Compensation | Investment | Nominating and Corporate Governance | |||||||||||||||||||||||||||||||||||||||
ROBERT L. DENTON, SR. Chairman of the Board as of January 1, 2024 | 71 | 1999 | ||||||||||||||||||||||||||||||||||||||||||
THOMAS F. BRADY | 74 | 2002 | ||||||||||||||||||||||||||||||||||||||||||
STEPHEN E. BUDORICK President + Chief Executive Officer | 63 | 2016 | ||||||||||||||||||||||||||||||||||||||||||
PHILIP L. HAWKINS | 68 | 2014 | ||||||||||||||||||||||||||||||||||||||||||
LETITIA A. LONG | 65 | 2020 | ||||||||||||||||||||||||||||||||||||||||||
ESSYE B. MILLER | 60 | 2022 | ||||||||||||||||||||||||||||||||||||||||||
RAYMOND L. OWENS | 65 | 2021 | ||||||||||||||||||||||||||||||||||||||||||
C. TAYLOR PICKETT | 62 | 2013 | ||||||||||||||||||||||||||||||||||||||||||
LISA G. TRIMBERGER | 63 | 2017 |
Chair | Member |
| | | | | | | | | | | | Board Committee Memberships | | |||||||||
Board Committee Memberships | | | Age | | | Trustee Since | | | Audit | | | Compensation | | | Investment | | | Nominating and Corporate Governance | | |||
| | THOMAS F. BRADY Chairman of the Board | | | 72 | | | 2002 | | | | | | | | | | | ||||
| | STEPHEN E. BUDORICK President + Chief Executive Officer | | | 61 | | | 2016 | | | | | | | | | | | | | | |
| | ROBERT L. DENTON, SR. | | | 69 | | | 1999 | | | | | | | | | | | ||||
| | PHILIP L. HAWKINS | | | 66 | | | 2014 | | | | | | | | | | | | |||
| | STEVEN D. KESLER | | | 70 | | | 1998 | | | | | | | | | | | | |||
| | LETITIA A. LONG | | | 63 | | | 2020 | | | | | | | | | | | | |||
| | RAYMOND L. OWENS | | | 63 | | | 2021 | | | | | | | | | | | | |||
| | C. TAYLOR PICKETT | | | 60 | | | 2013 | | | | | | | | | | | | |||
| | LISA G. TRIMBERGER | | | 61 | | | 2017 | | | | | | | | | | | |
95% leased / 94% occupied | 80% tenant retention rate | 747,000 square feet of development leasing | ||||||||||||
848,000 square feetdeveloped, with817,000 square feet under development at year end | $190 million raised from sale of interests in properties | $345 million in debt issued at 5.25% |
Shareholder Support | Shareholders will have the opportunity at our |
2 | COPT Defense Properties |
100% of NEO AIAs are formulaic and based on achievement of established corporate objectives. | 60% of NEO LTIP awards are performance-based, with payout tied to the TSR of our common shares for a three-year period, and 40% are time-based awards. |
2024 Proxy Statement | 3 |
Recent Achievements | ||||||||||||
Received Green Star recognition from GRESB for the | ||||||||||||
Reported information with respect to the Company’s risks and emissions data to align with applicable frameworks under both SASB and Global Reporting Initiative. | ||||||||||||
Proposal 1 | ELECTION OF NINE TRUSTEES | Our Board recommends a vote FOR each of the nine Trustee nominees. | |||||||||||||||||||||||||||||
Our Bylaws provide for the annual election of Trustees at the Annual Meeting of Shareholders. Our Board, at the recommendation of its Nominating and Corporate Governance Committee, has nominated nine of our current Trustees for | |||||||||||||||||||||||||||||||
1. | |||||||||||||||||||||||||||||||
Robert L. Denton, Sr. | 4.Philip L. Hawkins | 7.Raymond L. Owens | |||||||||||||||||||||||||||||
2.Thomas F. Brady | 5.Letitia A. Long | 8.C. Taylor Pickett | |||||||||||||||||||||||||||||
3.Stephen E. Budorick | 6.Essye B. Miller | 9. Lisa G. Trimberger | |||||||||||||||||||||||||||||
2024 Proxy Statement | 5 |
Trustee Skills and Experience | Robert L. Denton, Sr. | Philip L. Hawkins | Letitia A. Long | Raymond L. Owens | C. Taylor Pickett | Lisa G. Trimberger | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Leadership | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public Company Board Service | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance/Capital Markets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Risk Management | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Investment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Strategic Planning + Leadership | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Technology/Cybersecurity Experience | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government/Regulatory Affairs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Audit Committee Financial Expert |
6 | COPT Defense Properties |
Robert L. Denton, Sr. | Age: 71 | ||||||||||||||||
Independent Trustee Since: 1999 | |||||||||||||||||
BACKGROUND The Shidler Group >Managing Partner—New York (1994-2013) Providence Capital, Inc. >Co-Founder and Managing Director (1991-1994) Jefferies Group LLC (f/k/a Jefferies & Co.) >Co-Head Mergers and Acquisitions (1987-1991) Pacific Equity Ltd. >Head of Investment Research (1985-1987) Booz Allen & Hamilton, Inc. >Consulting-Principal (1980-1985) OTHER EXPERIENCE Co-Founder of several organizations sponsored by The Shidler Organization, including: >COPT Defense Properties (NYSE: CDP) >First Industrial Realty Trust, Inc. (NYSE: FR) >Primus Guaranty, Ltd. (formerly NYSE: PRS) Structured execution of initial public offering for TriNet Corporate Realty Trust (formerly NYSE: TRI) Co-Inventor: Business process patent to create, price and manage electronic trading and distribution of credit risk transfer products (U.S. Pat. Appl. 20020055897) EDUCATION >BS in Economics—University of Pennsylvania >MBA—Wharton School of the University of Pennsylvania COPT BOARD SERVICE Mr. Denton’s extensive real estate, financial, and consulting career, including as a senior executive in a well-known private real estate investment and acquisition company, enables him to provide meaningful insight and leadership into our strategic initiatives, with specific focus on the analysis of our proposed investment, development and capital market initiatives. His professional experience and history with the Company, including being the former chair of the Nominating and Corporate Governance Committee, make Mr. Denton ideally suited as Chairman of the Board. | |||||||||||||||||
CHAIRMAN OF THE BOARD SINCE | |||||||||||||||||
COMMITTEES Nominating and Corporate Governance | |||||||||||||||||
Skills and Qualifications | |||||||||||||||||
Public Company Board Service | |||||||||||||||||
Financial Literacy/ Accounting | |||||||||||||||||
Finance/Capital Markets | |||||||||||||||||
Corporate Governance | |||||||||||||||||
Real Estate Investment | |||||||||||||||||
Strategic Planning + Leadership | |||||||||||||||||
Audit Committee Financial Expert |
2024 Proxy Statement | 7 |
Thomas F. Brady | Age: | |||||||||||||||||||
Independent Trustee Since: 2002 | ||||||||||||||||||||
BACKGROUND Opower, Inc. > Former Chairman, Advisory Board (2009-2016) Constellation Energy Group (NYSE: CEG) > Former Executive Vice President-Corporate Strategy Baltimore Gas & Electric Company > Various Positions, including Vice President and Chief Accounting Officer OTHER EXPERIENCE Baltimore Gas & Electric Company > Former Stevenson University > Former Trustee and Treasurer of the Board Maryland Public Broadcasting Commission and Maryland Public Television > Former Chairman Maryland Chamber of Commerce > Former Member EDUCATION > BS in Accounting—University of Baltimore > MBA in Finance—Loyola University > Advanced Executive Program—Penn State University > Certified Public Accountant COPT BOARD SERVICE Mr. |
COMMITTEES Compensation, Investment, Nominating and Corporate Governance | |||||||||||||
Skills and Qualifications | |||||||||||||
Executive Leadership | |||||||||||||
Public Company Board Service | |||||||||||||
Financial Literacy/ Accounting | |||||||||||||
Finance/Capital Markets | |||||||||||||
Corporate Governance | |||||||||||||
Strategic Planning + Leadership | |||||||||||||
Stephen E. Budorick | Age: | |||||||||||||||||||
Trustee Since: 2016 | ||||||||||||||||||||
BACKGROUND > President + Chief Executive Officer (“CEO”) (2016-Present) > Executive Vice President + Chief Operating Officer (“COO”) (2011-2016) Callahan Capital Partners, LLC > Executive Vice President of Asset Management (2006-2011) Trizec Properties, Inc. > Executive Vice President Central Region (1997-2006) Miglin Beitler Management Company > Executive Vice President (1991-1997) Lasalle Partners, Ltd. (now known as Jones Lang LaSalle, Inc.) > Vice President Asset Management (1988-1991) American Hospital Association > Facilities management and planning (1983-1988) EDUCATION > BS in Industrial Engineering—University of Illinois > MBA—University of Chicago COPT BOARD SERVICE Mr. Budorick’s experience as our President + CEO and his prior experience as our COO, as well as his depth of both operational and financial expertise, make him highly qualified to serve as a valued member of our Board. In his role as CEO, Mr. Budorick is a critical link between the Board and management. His experience at initiating and implementing strategic initiatives and continued engagement in the commercial real estate community are valuable assets to the Board. | ||||||||||||||||||||
PRESIDENT + CHIEF EXECUTIVE OFFICER (“CEO”) SINCE MAY 2016 | ||||||||||||||||||||
COMMITTEES None | ||||||||||||||||||||
Skills and Qualifications | ||||||||||||||||||||
Executive Leadership | ||||||||||||||||||||
Financial Literacy/ Accounting | ||||||||||||||||||||
Finance/Capital Markets | ||||||||||||||||||||
Corporate Governance | ||||||||||||||||||||
Real Estate Investment | ||||||||||||||||||||
Strategic Planning + Leadership |
8 | COPT Defense Properties |
Philip L. Hawkins | Age: | ||||||||
Independent Trustee Since: 2014 | |||||||||
BACKGROUND DCT Industrial Trust (formerly NYSE: DCT) > President and Chief Executive Officer (2006-2018) CarrAmerica Realty Corporation (formerly NYSE: CRE) > Various positions, including President and Chief Operating Officer (1996-2006) LaSalle Partners, Ltd. (now known as Jones Lang LaSalle, Inc.) > Various senior executive positions in real estate investment, development, leasing and management (1982-1996) |
OTHER EXPERIENCE >COPT Defense Properties (NYSE: CDP) >First Industrial Realty Trust, Inc. (NYSE: FR) > Primus Guaranty, Ltd. (formerly NYSE: PRS) Co-Inventor: Business process patent to create, price and manage electronic trading and distribution of credit risk transfer products (U.S. Pat. Appl. 20020055897) EDUCATION >BS in Economics—University of Pennsylvania >MBA—Wharton School of the COPT BOARD SERVICE | |||||||||||
CHAIRMAN OF THE BOARD SINCE JANUARY 2024 | |||||||||||
COMMITTEES Audit, Investment, Nominating and Corporate Governance | |||||||||||
Skills and Qualifications | |||||||||||
Public Company Board Service | |||||||||||
Financial Literacy/ Accounting | |||||||||||
Finance/Capital Markets | |||||||||||
Corporate Governance | |||||||||||
Real Estate Investment | |||||||||||
Strategic Planning + Leadership | |||||||||||
Audit Committee Financial Expert |
2024 Proxy Statement | 7 |
Age: | ||||||||||||||||||
Independent Trustee Since: | ||||||||||||||||||
BACKGROUND >Former Chairman, Advisory Board (2009-2016) Constellation Energy Group (NYSE: > > > Former Chairman Board of Directors >Former Trustee and Maryland Chamber of Commerce EDUCATION > > MBA in >Certified Public Accountant COPT BOARD SERVICE Mr. |
COMMITTEES Compensation, Investment, Nominating and Corporate Governance | |||||||||||||||
Skills and Qualifications | |||||||||||||||
Executive Leadership | |||||||||||||||
Public Company Board Service | |||||||||||||||
Financial Literacy/ Accounting | |||||||||||||||
Finance/Capital Markets | |||||||||||||||
Corporate Governance | |||||||||||||||
Strategic Planning + Leadership | |||||||||||||||
Age: | ||||||||||||||||||
BACKGROUND > President + Chief Executive Officer > Executive Vice President > Executive Vice President of Miglin Beitler Management Company > EDUCATION > > COPT BOARD SERVICE Mr. | ||||||||||||||||||
PRESIDENT + CHIEF EXECUTIVE OFFICER (“CEO”) SINCE MAY 2016 | ||||||||||||||||||
COMMITTEES None | ||||||||||||||||||
Skills and Qualifications | ||||||||||||||||||
Executive Leadership | ||||||||||||||||||
Financial Literacy/ Accounting | ||||||||||||||||||
Finance/Capital Markets | ||||||||||||||||||
Corporate Governance | ||||||||||||||||||
Real Estate Investment | ||||||||||||||||||
Strategic Planning + Leadership |
8 | COPT Defense Properties |
Philip L. Hawkins | Age: | |||||||||||||||||
Independent Trustee Since: | ||||||||||||||||||
BACKGROUND > President and Chief Executive Officer (2006-2018) >Various positions, including President and > OTHER EXPERIENCE > COPT Defense Properties (NYSE: CDP) >First Industrial Realty Trust, Inc. (NYSE: FR) >Primus Guaranty, Ltd. (formerly NYSE: PRS) Structured execution of initial public offering for TriNet Corporate Realty Trust (formerly NYSE: TRI) Co-Inventor: Business process patent to create, price and manage electronic trading and distribution of credit risk transfer products (U.S. Pat. Appl. 20020055897) EDUCATION >BS in Economics—University of Pennsylvania >MBA—Wharton School of the University of Pennsylvania COPT BOARD SERVICE Mr. Denton’s extensive real estate, financial, and consulting career, including as a senior executive in a well-known private real estate investment and acquisition company, enables him to provide meaningful insight and leadership into our strategic initiatives, with specific focus on the analysis of our proposed investment, development and capital market initiatives. His professional experience and history with the Company, including being the former chair of the Nominating and Corporate Governance Committee, make Mr. Denton ideally suited as Chairman of the Board. | ||||||||||||||||||
CHAIRMAN OF THE BOARD SINCE JANUARY 2024 | ||||||||||||||||||
COMMITTEES Audit, Investment, Nominating and Corporate Governance | ||||||||||||||||||
Skills and Qualifications | ||||||||||||||||||
Public Company Board Service | ||||||||||||||||||
Financial Literacy/ Accounting | ||||||||||||||||||
Finance/Capital Markets | ||||||||||||||||||
Corporate Governance | ||||||||||||||||||
Real Estate Investment | ||||||||||||||||||
Strategic Planning + Leadership | ||||||||||||||||||
Audit Committee Financial Expert |
2024 Proxy Statement | 7 |
Thomas F. Brady | Age: 74 | ||||||||||||||||
Independent Trustee Since: 2002 | |||||||||||||||||
BACKGROUND Opower, Inc. (formerly NYSE: OPWR) >Former Chairman, Advisory Board (2009-2016) Constellation Energy Group (NYSE: CEG) >Former Executive Vice President-Corporate Strategy Baltimore Gas & Electric Company >Various Positions, including Vice President and Chief Accounting Officer OTHER EXPERIENCE Baltimore Gas & Electric Company >Former Chairman Board of Directors Stevenson University >Former Trustee and Treasurer of the Board Maryland Public Broadcasting Commission and Maryland Public Television >Former Chairman Maryland Chamber of Commerce >Former Member Board of Directors EDUCATION >BS in Accounting—University of Baltimore >MBA in Finance—Loyola University >Advanced Executive Program—Penn State University >Certified Public Accountant COPT BOARD SERVICE Mr. Brady served as our Board’s Chairman from May 2013 until stepping down from that role effective December 31, 2023. His extensive career in key financial and strategic executive positions at a larger public company, and experiences with privately-owned, venture capital funded start-up companies, qualifies him to contribute to our Board and assess our strategic initiatives, both qualitatively and quantitatively. Mr. Brady’s utility operations experience and significant civic involvement also complement and enhance the perspectives he brings to his role as a member of our Board. | |||||||||||||||||
COMMITTEES Compensation, Investment, Nominating and Corporate Governance | |||||||||||||||||
Skills and Qualifications | |||||||||||||||||
Executive Leadership | |||||||||||||||||
Public Company Board Service | |||||||||||||||||
Financial Literacy/ Accounting | |||||||||||||||||
Finance/Capital Markets | |||||||||||||||||
Corporate Governance | |||||||||||||||||
Strategic Planning + Leadership | |||||||||||||||||
Stephen E. Budorick | Age: 63 | ||||||||||||||||
Trustee Since: 2016 | |||||||||||||||||
BACKGROUND COPT Defense Properties >President + Chief Executive Officer (“CEO”) (2016-Present) >Executive Vice President + Chief Operating Officer (“COO”) (2011-2016) Callahan Capital Partners, LLC >Executive Vice President of Asset Management (2006-2011) Trizec Properties, Inc. >Executive Vice President Central Region (1997-2006) Miglin Beitler Management Company >Executive Vice President (1991-1997) Lasalle Partners, Ltd. (now known as Jones Lang LaSalle, Inc.) >Vice President Asset Management (1988-1991) American Hospital Association >Facilities management and planning (1983-1988) EDUCATION >BS in Industrial Engineering—University of Illinois >MBA—University of Chicago COPT BOARD SERVICE Mr. Budorick’s experience as our President + CEO and his prior experience as our COO, as well as his depth of both operational and financial expertise, make him highly qualified to serve as a valued member of our Board. In his role as CEO, Mr. Budorick is a critical link between the Board and management. His experience at initiating and implementing strategic initiatives and continued engagement in the commercial real estate community are valuable assets to the Board. | |||||||||||||||||
PRESIDENT + CHIEF EXECUTIVE OFFICER (“CEO”) SINCE MAY 2016 | |||||||||||||||||
COMMITTEES None | |||||||||||||||||
Skills and Qualifications | |||||||||||||||||
Executive Leadership | |||||||||||||||||
Financial Literacy/ Accounting | |||||||||||||||||
Finance/Capital Markets | |||||||||||||||||
Corporate Governance | |||||||||||||||||
Real Estate Investment | |||||||||||||||||
Strategic Planning + Leadership |
8 | COPT Defense Properties |
Philip L. Hawkins | Age: 68 | ||||||||||||||||
Independent Trustee Since: 2014 | |||||||||||||||||
BACKGROUND DCT Industrial Trust (formerly NYSE: DCT) >President and Chief Executive Officer (2006-2018) CarrAmerica Realty Corporation (formerly NYSE: CRE) >Various positions, including President and Chief Operating Officer (1996-2006) LaSalle Partners, Ltd. (now known as Jones Lang LaSalle, Inc.) >Various senior executive positions in real estate investment, development, leasing and management (1982-1996) OTHER PUBLIC COMPANY BOARDS Current >Welltower (NYSE: WELL) Former (past 5 years) >DCT Industrial Trust (formerly NYSE: DCT) >Prologis Inc. (NYSE: PLD) OTHER EXPERIENCE Pure Industrial >Board Member (2022-Present) WPG (formerly Washington Prime Group, Inc.; formerly NYSE: WPG) >Board Member (2022-Present) Link Logistics Real Estate >Executive Chairman (2020-Present) Hamilton College >Trustee (2012-Present) EDUCATION >BA in Economics—Hamilton College >MBA—University of Chicago COPT BOARD SERVICE Mr. Hawkins’ lengthy real estate career and current and past executive positions, both in the office and industrial sectors, with publicly traded companies, qualifies him to provide an experienced perspective on our strategic initiatives, to assess capital allocation and other investment decisions, as well as to evaluate compensation matters. In addition, Mr. Hawkins’ extensive public company board service enhances the insights he brings as a Board member. | |||||||||||||||||
COMMITTEES Compensation, Investment (Chair) | |||||||||||||||||
Skills and Qualifications | |||||||||||||||||
Executive Leadership | |||||||||||||||||
Public Company Board Service | |||||||||||||||||
Financial Literacy/ Accounting | |||||||||||||||||
Finance/Capital Markets | |||||||||||||||||
Real Estate Investment | |||||||||||||||||
Strategic Planning + Leadership | |||||||||||||||||
2024 Proxy Statement | 9 |
Letitia A. Long | Age: 65 | ||||||||||||||||
Independent Trustee Since: 2020 | |||||||||||||||||
BACKGROUND US Government >Director, National Geospatial-Intelligence Agency (2010-2014) >Deputy Director, Defense Intelligence Agency (“DIA”) (2006-2010) >Deputy Undersecretary of Defense for Intelligence (2003-2006) >Deputy Director, Naval Intelligence (2000-2003) >Various positions with US Intelligence (1978-2000) OTHER PUBLIC COMPANY BOARDS Current >T-Mobile US, Inc. (NASDAQ: TMUS) >Parsons Corporation (NYSE: PSN) Former (past 5 years) >Raytheon Company (NYSE: RTX) >Urthecast (TSX: UR) >Chain Bridge I (SPAC) OTHER EXPERIENCE Noblis, Inc. >Vice Chair of the Board of Trustees Virginia Polytechnic Institute and State University >Virginia Tech Board of Visitors EDUCATION >BS in Electrical Engineering—Virginia Polytechnic Institute and State University >MS in Engineering—Catholic University of America COPT BOARD SERVICE Ms. Long’s experience in the U.S. Department of Defense and multiple intelligence agencies, as well as her experience as a public company board member, positions her to contribute to our strategy and governance matters. | |||||||||||||||||
COMMITTEES Audit, Nominating and Corporate Governance (Chair) | |||||||||||||||||
Skills and Qualifications | |||||||||||||||||
Executive Leadership | |||||||||||||||||
Public Company Board Service | |||||||||||||||||
Financial Literacy/Accounting | |||||||||||||||||
Risk Management | |||||||||||||||||
Corporate Governance | |||||||||||||||||
Strategic Planning + Leadership | |||||||||||||||||
Technology/Cybersecurity Experience | |||||||||||||||||
Government, Regulatory Affairs |
Essye B. Miller | Age: 60 | ||||||||||||||||
Independent Trustee Since: 2022 | |||||||||||||||||
BACKGROUND Executive Business Management LLC >President and Chief Executive Officer (2020 to present) US Government >Department of Defense (“DOD”) >Principal Deputy Chief Information Officer (“CIO”) (2018-2020) >Deputy CIO for Cybersecurity (“CISO”) (2016-2018) >Acting CIO (December 2017-May 2018) >Department of U.S. Army >CISO and Cybersecurity (2015-2017) >Department of U.S. Air Force >Director of Information Management (2006-2014) OTHER EXPERIENCE Concordance Academy and the National Cyber Scholarship Foundation >Non-Profit Board Member EDUCATION >Honorary Doctor of Science—Talladega College >MBA in Business Administration—Troy State University >Master of Strategic Studies—U.S. Air Force, Air University COPT BOARD SERVICE Ms. Miller’s experience in the U.S. Government, and experience information technology and cyber security positions her to contribute to our strategy and risk management matters. | |||||||||||||||||
COMMITTEES Audit, Nominating and Corporate Governance | |||||||||||||||||
Skills and Qualifications | |||||||||||||||||
Executive Leadership | |||||||||||||||||
Risk Management | |||||||||||||||||
Corporate Governance | |||||||||||||||||
Strategic Planning + Leadership | |||||||||||||||||
Technology/Cybersecurity Experience | |||||||||||||||||
Government, Regulatory Affairs |
10 | COPT Defense Properties |
Raymond L. Owens | Age: 65 | ||||||||||||||||
Independent Trustee Since: 2021 | |||||||||||||||||
BACKGROUND Piedmont Office Realty Trust (NYSE: PDM) >Chief Investment Officer and Executive Vice President of Capital Markets (2016-2017) >Executive Vice President, Capital Markets (2007-2016) Wells Real Estate Funds >Managing Director and Executive Vice President of Capital Markets (2002-2007) PM Realty Group, LP >Senior Vice President (1997-2002) Various Roles, Capital Markets and Real Estate Investment >General Electric Investments, HPI Realty Partners, Travelers Realty Investment Company and Aetna Realty Investors (1982-1997) OTHER EXPERIENCE Stephen M. Ross School of Business at the University of Michigan >Member, Advisory Board Ross Real Estate Fund (2016-2020) >Member, Alumni Board of Governors (2010-2016) EDUCATION >BA in Economics—University of Michigan, Ann Arbor >MBA in Marketing and Real Estate—Stephen M. Ross School of Business at the University of Michigan, Ann Arbor COPT BOARD SERVICE Mr. Owens’ lengthy real estate career and past executive positions at both publicly traded and private companies qualifies him to provide an experienced perspective on our strategic initiatives and to assess capital allocation and other investment decisions. | |||||||||||||||||
COMMITTEES Compensation, Investment | |||||||||||||||||
Skills and Qualifications | |||||||||||||||||
Executive Leadership | |||||||||||||||||
Financial Literacy/Accounting | |||||||||||||||||
Finance/Capital Markets | |||||||||||||||||
Real Estate Investment | |||||||||||||||||
Strategic Planning + Leadership | |||||||||||||||||
C. Taylor Pickett | Age: 62 | ||||||||||||||||
Independent Trustee Since: 2013 | |||||||||||||||||
BACKGROUND Omega Healthcare Investors, Inc. (NYSE: OHI) >Chief Executive Officer (2001-Present) Integrated Health Services, Inc. >Executive Vice President and Chief Financial Officer (1998-2001) >Various executive positions (1993-1998) PHH Corporation >Vice President of Taxes (1991-1993) KPMG >Certified public accountant (1984-1991) OTHER PUBLIC COMPANY BOARDS Current >Omega Healthcare Investors, Inc. (NYSE: OHI) EDUCATION >BA in Accounting—University of Delaware >JD—University of Maryland School of Law >Certified Public Accountant COPT BOARD SERVICE Mr. Pickett’s extensive executive experience at various public companies and his financial expertise are assets to considering our strategic initiatives, capital allocation decisions and compensation matters, and supplement our financial oversight. In addition, his active role as a chief executive officer serves as a valuable resource for both management and the Board. | |||||||||||||||||
COMMITTEES Compensation (Chair), Investment | |||||||||||||||||
Skills and Qualifications | |||||||||||||||||
Executive Leadership | |||||||||||||||||
Public Company Board Service | |||||||||||||||||
Financial Literacy/Accounting | |||||||||||||||||
Finance/Capital Markets | |||||||||||||||||
Real Estate Investment | |||||||||||||||||
Strategic Planning + Leadership |
2024 Proxy Statement | 11 |
Lisa G. Trimberger | Age: 63 | ||||||||||||||||
Independent Trustee Since: 2017 | |||||||||||||||||
BACKGROUND Mack Capital Investments LLC >Principal and owner (2014-Present) Deloitte & Touche LLP >Audit partner and other positions (1983-2014) >Co-chair of the Nominating Committee of the Board of Directors >Leader of the firm’s National Women’s Initiative for development and retention of women professionals OTHER PUBLIC COMPANY BOARDS Current >EPR Properties (NYSE: EPR) >Luxfer Holdings PLC (NYSE: LXFR) OTHER EXPERIENCE NACD >Member and Board Leadership Fellow National Association of Real Estate Investment Trusts > Member > BS in Accounting—St. Cloud State University > Certified Public Accountant > CERT Certificate in Cybersecurity Oversight—NACD, Ridge Global and Carnegie Mellon University’s CERT division > Women’s Director Development Executive Program—J.L. Kellogg School of Management of Northwestern University COPT BOARD SERVICE Ms. Trimberger’s experience as an audit partner in a Big Four firm positions her to contribute significantly as a financial expert in areas including financial and audit oversight, corporate governance and risk management matters. | |||||||||||||||||
COMMITTEES Audit (Chair), Nominating and Corporate Governance | |||||||||||||||||
Skills and Qualifications | |||||||||||||||||
Public Company Board Service | |||||||||||||||||
Financial Literacy/Accounting | |||||||||||||||||
Risk Management | |||||||||||||||||
Corporate Governance | |||||||||||||||||
Strategic Planning + Leadership | |||||||||||||||||
Audit Committee Financial Expert | |||||||||||||||||
12 | COPT Defense Properties |
2024 Proxy Statement | 13 |
Annual Trustee Fee | $ | 70,000 | ||||||
Annual Chair of Board fee | $ | 70,000 | ||||||
Annual committee chair fee | ||||||||
Audit | $ | 17,500 | ||||||
Compensation | $ | 15,000 | ||||||
Investment | $ | 13,000 | ||||||
Nominating and Corporate Governance | $ | 15,000 | ||||||
Annual committee fees | ||||||||
Audit | $ | 14,000 | ||||||
Compensation | $ | 12,000 | ||||||
Investment | $ | 10,000 | ||||||
Nominating and Corporate Governance | $ | 12,000 | ||||||
Fee for each Board meeting attended after first 12 per calendar year | $ | 2,000 |
| Annual Trustee Fee | | | | $ | 64,000 | | |
| Annual Chair of Board fee | | | | $ | 50,000 | | |
| Annual committee chair fee | | | | | | | |
| Audit | | | | $ | 17,500 | | |
| Compensation | | | | $ | 15,000 | | |
| Investment | | | | $ | 13,000 | | |
| Nominating and Corporate Governance | | | | $ | 11,000 | | |
| Annual committee fees | | | | | | | |
| Audit | | | | $ | 14,000 | | |
| Compensation | | | | $ | 12,000 | | |
| Investment | | | | $ | 10,000 | | |
| Nominating and Corporate Governance | | | | $ | 8,000 | | |
| Fee for each Board meeting attended after first 12 per calendar year | | | | $ | 2,000 | | |
14 | COPT Defense Properties |
Name of Trustee | | | Fees Earned (Paid in Cash)(1) | | | Equity Awards(2) | | | Total | | |||||||||
Thomas F. Brady | | | | $ | 144,000 | | | | | $ | 92,642 | | | | | $ | 236,642 | | |
Robert L. Denton, Sr. | | | | $ | 107,000 | | | | | $ | 92,642 | | | | | $ | 199,642 | | |
Philip L. Hawkins | | | | $ | 99,000 | | | | | $ | 92,642 | | | | | $ | 191,642 | | |
David M. Jacobstein | | | | $ | 92,375 | | | | | $ | 92,642 | | | | | $ | 185,017 | | |
Steven D. Kesler | | | | $ | 88,000 | | | | | $ | 92,642 | | | | | $ | 180,642 | | |
Letitia A. Long | | | | $ | 79,250 | | | | | $ | 92,642 | | | | | $ | 171,892 | | |
Raymond L. Owens(3) | | | | $ | 64,083 | | | | | $ | 116,361 | | | | | $ | 180,444 | | |
C. Taylor Pickett | | | | $ | 101,000 | | | | | $ | 92,642 | | | | | $ | 193,642 | | |
Lisa G. Trimberger | | | | $ | 99,125 | | | | | $ | 92,642 | | | | | $ | 191,767 | | |
Name of Trustee | Fees Earned (Paid in Cash)(1) | Equity Awards(2) | Total | |||||||||||||||||
Robert L. Denton, Sr. | $ | 121,000 | $ | 107,421 | $ | 228,421 | ||||||||||||||
Thomas F. Brady | $ | 174,000 | $ | 107,421 | $ | 281,421 | ||||||||||||||
Philip L. Hawkins | $ | 105,000 | $ | 107,421 | $ | 212,421 | ||||||||||||||
Steven D. Kesler | $ | 94,000 | $ | 107,421 | $ | 201,421 | ||||||||||||||
Letitia A. Long | $ | 96,000 | $ | 107,421 | $ | 203,421 | ||||||||||||||
Essye B. Miller | $ | 86,000 | $ | 107,421 | $ | 193,421 | ||||||||||||||
Raymond L. Owens | $ | 92,000 | $ | 107,421 | $ | 199,421 | ||||||||||||||
C. Taylor Pickett | $ | 107,000 | $ | 107,421 | $ | 214,421 | ||||||||||||||
Lisa G. Trimberger | $ | 113,500 | $ | 107,421 | $ | 220,921 |
2024 Proxy Statement | 15 |
16 | COPT Defense Properties |
Board Member | | | Audit | | | Compensation | | | Investment | | | Nominating and Corporate Governance | |
Thomas F. Brady | | | | | | | | | | | |||
Robert L. Denton, Sr. | | | | | | | | | | | |||
Philip L. Hawkins | | | | | | | | | | | | ||
David M. Jacobstein(1) | | | | | | | | | | | | ||
Steven D. Kesler | | | | | | | | | | | | ||
Letitia A. Long(2) | | | | | | | | | | | | ||
Raymond L. Owens(3) | | | | | | | | | | | | ||
C. Taylor Pickett | | | | | | | | | | | | ||
Lisa G. Trimberger(1) | | | | | | | | | | | | ||
Meetings Held in 2021 | | | 8 | | | 4 | | | 4 | | | 4 | |
Board Member | Audit | Compensation | Investment | Nominating and Corporate Governance | |||||||||||||||||||
Robert L. Denton, Sr. (1) | |||||||||||||||||||||||
Thomas F. Brady | |||||||||||||||||||||||
Philip L. Hawkins | |||||||||||||||||||||||
Steven D. Kesler | |||||||||||||||||||||||
Letitia A. Long (1) | |||||||||||||||||||||||
Essye B. Miller(2) | |||||||||||||||||||||||
Raymond L. Owens | |||||||||||||||||||||||
C. Taylor Pickett | |||||||||||||||||||||||
Lisa G. Trimberger | |||||||||||||||||||||||
Meetings Held in 2023 | 10 | 4 | 4 | 5 |
Chair | Member |
2024 Proxy Statement | 17 |
18 | COPT Defense Properties |
2024 Proxy Statement | 19 |
20 | COPT Defense Properties |
2024 Proxy Statement | 21 |
Anthony Mifsud | Anthony Mifsud, |
Proposal 2 | ADVISORY VOTE TO APPROVE EXECUTIVE COMPENSATION | Our Board recommends a voteFOR the approval of this resolution. | ||||||||||||
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, or the Dodd-Frank Act, enables our shareholders to vote to approve, on an advisory basis, the compensation of our named executive officers as disclosed in this proxy statement in accordance with the SEC’s rules. This is commonly known as, and is referred to herein as, a “say-on-pay” proposal or resolution. |
22 | COPT Defense Properties |
COMPENSATION COMMITTEE | |||||||||||
C. Taylor Pickett, Chair Thomas F. Brady Philip L. Hawkins Raymond L. Owens |
2024 Proxy Statement | 23 |
Page Number | ||||||||||||
24 | COPT Defense Properties |
1-Year | 3-Year | 5-Year | |||||||||||||||||
COPT | COPT | ||||||||||||||||||
Nareit Office | Nareit Office | Nareit Office | |||||||||||||||||
Peer Group | Peer Group | Peer Group |
2024 Proxy Statement | 25 |
Performance Period | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Result | % of Target Payout | |||||||||||||||||||||||
2017 - 2019 | Below Target | 53 | % | |||||||||||||||||||||||||||||
2018 - 2020 | Maximum Earned | 200 | % | |||||||||||||||||||||||||||||
2019 - 2021 | Maximum Earned | 200 | % | |||||||||||||||||||||||||||||
2020 - 2022 | Maximum Earned | 200 | % | |||||||||||||||||||||||||||||
2021 - 2023 | Maximum Earned | 200 | % |
26 | COPT Defense Properties |
WHAT WE DO | WHAT WE DON’T DO | ||||||||||
Pay for Performance: We tie our NEOs’ compensation to performance by setting clear and challenging objectives with the majority of total target compensation consisting of performance-based components. Multiple Performance Metrics: We use different performance measures for short-and long-term incentives, with multi-year vesting or measurement periods for long-term incentives. Risk Oversight: We annually prepare an Enterprise Risk Management assessment. The Compensation Committee carefully considers the risks associated with all elements of our compensation programs. Annual Pay for Performance Analysis: We assess pay and performance relative to peers to ensure that actual payouts align competitively. Share Ownership | No Guaranteed Bonuses: We do not provide NEOs with guaranteed cash bonuses. No Excise Tax Gross-Ups: We have no agreements in place that provide for reimbursement by the Company for the tax obligations of our employees resulting from severance payments made in the event of a change in control and will not enter into any such agreements in the future. No Repricing of Stock Options: We have not issued stock options since 2009. There are currently no outstanding stock options, none of our current NEOs were ever issued stock options and we do not reprice underwater stock options. No Hedging or Pledging: We have an anti-pledging and anti-hedging policy. Subject to the terms of the policy, executives may not (1) hold securities of the Company in a margin account or pledge securities of the Company as collateral for a loan, or (2) enter into hedging or monetization transactions or similar arrangements with respect to securities of the Company. | ||||||||||
Clawback Policy: We have in place a comprehensive incentive recoupment (i.e., “clawback”) policy. Peer Group: We use an appropriately sized and defined peer group for compensation benchmarking purposes and review the companies comprising the peer group annually. |
Shareholder Support | At our May |
2024 Proxy Statement | 27 |
28 | COPT Defense Properties |
> | American Assets Trust, Inc. (ticker: AAT) | > | Highwoods Properties, Inc. (ticker: HIW) | |||||||||
> | Brandywine Realty Trust | > | Hudson Pacific Properties, Inc. (ticker: HPP) | |||||||||
> | Cousins Properties Incorporated (ticker: CUZ) | > | JBG Smith Properties (ticker: JBGS) | |||||||||
> | Douglas Emmett, Inc. (ticker: DEI) | > | Kilroy Realty Corporation (ticker: KRC) | |||||||||
> | Easterly Government Properties, Inc. | Piedmont Office Realty Trust, Inc. (ticker: PDM) | ||||||||||
> | Elme Communities (ticker: ELME) | > | STAG Industrial, Inc. | |||||||||
> | Empire State Realty Trust, Inc. (ticker: ESRT) | Veris Residential, Inc. (ticker: VRE) |
2024 Proxy Statement | 29 |
| | | Base Salary as of December 31, | | | | | | | | |||||||||
Name of Executive | | | 2020 | | | 2021 | | | % Increase | | |||||||||
Stephen E. Budorick | | | | $ | 725,000 | | | | | $ | 750,000 | | | | | | 3.4% | | |
Todd Hartman(1) | | | | $ | 425,000 | | | | | $ | 425,000 | | | | | | 0.0% | | |
Anthony Mifsud | | | | $ | 439,000 | | | | | $ | 446,000 | | | | | | 1.6% | | |
Base Salary as of December 31, | ||||||||||||||||||||
Name of Executive | 2022 | 2023 | % Increase | |||||||||||||||||
Stephen E. Budorick | $ | 775,000 | $ | 775,000 | 0.0 | % | ||||||||||||||
Britt A. Snider(1) | N/A | $ | 425,000 | N/A | ||||||||||||||||
Anthony Mifsud | $ | 456,000 | $ | 456,000 | 0.0 | % | ||||||||||||||
Todd Hartman(2) | $ | 447,000 | N/A | N/A |
30 | COPT Defense Properties |
2024 Proxy Statement | 31 |
2023 AIA Opportunity as a % of Base Salary | ||||||||||||||||||||
Name of Executive | Threshold Level | Target Level | High Level | |||||||||||||||||
Stephen E. Budorick | 65.0 | % | 130.0 | % | 195.0 | % | ||||||||||||||
Anthony Mifsud | 57.5 | % | 115.0 | % | 172.5 | % | ||||||||||||||
Todd Hartman | 57.5 | % | 115.0 | % | 172.5 | % |
| | | 2021 AIA Opportunity as a % of Base Salary | | |||||||||||||||
Name of Executive | | | Threshold Level | | | Target Level | | | High Level | | |||||||||
Stephen E. Budorick | | | | | 65.0% | | | | | | 130.0% | | | | | | 195.0% | | |
Todd Hartman | | | | | 57.5% | | | | | | 115.0% | | | | | | 172.5% | | |
Anthony Mifsud | | | | | 57.5% | | | | | | 115.0% | | | | | | 172.5% | | |
Objective | | | Weighting % | | | Threshold Level | | | Target Level | | | High Level | | | Maximum Level | | | Actual Results, as Adjusted(1) | | | Achievement % | | | Weighted Results % | | ||||||||||||||||||||||||
Financial Measures | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
FFO per share | | | | | 35% | | | | | $ | 2.15 | | | | | $ | 2.19 | | | | | $ | 2.23 | | | | | $ | 2.27 | | | | | $ | 2.25 | | | | | | 175.0% | | | | | | 61.3% | | |
Same Properties cash NOI change | | | | | 15% | | | | | | -1.78% | | | | | | -0.79% | | | | | | 0.21% | | | | | | 1.20% | | | | | | 1.35% | | | | | | 200.0% | | | | | | 30.0% | | |
Debt ratio | | | | | 10% | | | | | | 6.44x | | | | | | 6.24x | | | | | | 6.04x | | | | | | 5.84x | | | | | | 6.31x | | | | | | 82.5% | | | | | | 8.3% | | |
Development leasing volume(2) | | | | | 30% | | | | | | 800 | | | | | | 1,000 | | | | | | 1,200 | | | | | | 1,400 | | | | | | 1,301 | | | | | | 175.2% | | | | | | 52.6% | | |
Core portfolio year end occupancy | | | | | 10% | | | | | | 91.6% | | | | | | 92.6% | | | | | | 93.6% | | | | | | 94.6% | | | | | | 92.7% | | | | | | 105.0% | | | | | | 10.5% | | |
| | | | | 100% | | | | | | | | | | | | | | | | | | | | | | | | | | | | Calculated Results | | | | | 162.6% | | | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Final Results | | | | | 150.0% | | |
Objective | Weighting % | Threshold Level | Target Level | High Level | Maximum Level | Actual Results(1) | Achievement % | Weighted Results % | ||||||||||||||||||
Financial Measures | ||||||||||||||||||||||||||
FFO per share | 30 | % | $2.34 | $2.38 | $2.42 | $2.46 | $2.42 | 150.0 | % | 45.0 | % | |||||||||||||||
Same Properties cash NOI change(2) | 10 | % | 2.0% | 3.0% | 4.0% | 5.0% | 4.5% | 176.5 | % | 17.7 | % | |||||||||||||||
Debt ratio | 10 | % | 6.4x | 6.2x | 5.9x | 5.7x | 6.1x | 110.0 | % | 11.0 | % | |||||||||||||||
Development leasing volume(3) | 20 | % | 325 | 475 | 625 | 775 | 565 | 130.0 | % | 26.0 | % | |||||||||||||||
New leasing annualized revenue(4) | 20 | % | $9,900 | $11,000 | $12,100 | $13,200 | $12,064 | 148.4 | % | 29.7 | % | |||||||||||||||
Core portfolio year end occupancy(5) | 10 | % | 92.8% | 93.8% | 94.8% | 95.8% | 94.3% | 125.0 | % | 12.5 | % | |||||||||||||||
100 | % | Final Results | 141.8 | % |
Name of Executive | | | Base Salary | | | AIA % of Salary at Target | | | Corporate Objectives Achievement % | | | Actual AIA Award | | | Actual Payout as a % of Salary | | |||||||||||||||
Stephen E. Budorick | | | | $ | 750,000 | | | | | | 130% | | | | | | 150.0% | | | | | $ | 1,462,500 | | | | | | 195.0% | | |
Todd Hartman | | | | $ | 425,000 | | | | | | 115% | | | | | | 150.0% | | | | | $ | 733,125 | | | | | | 172.5% | | |
Anthony Mifsud | | | | $ | 446,000 | | | | | | 115% | | | | | | 150.0% | | | | | $ | 769,350 | | | | | | 172.5% | | |
Name of Executive | Base Salary | AIA % of Salary at Target | Corporate Objectives Achievement % | Actual AIA Award | Actual Payout as a % of Salary | |||||||||||||||||||||||||||
Stephen E. Budorick | $ | 775,000 | 130 | % | 141.8 | % | $ | 1,428,635 | 184.3 | % | ||||||||||||||||||||||
Anthony Mifsud | $ | 456,000 | 115 | % | 141.8 | % | $ | 743,599 | 163.1 | % |
32 | COPT Defense Properties |
2024 Proxy Statement | 33 |
Name of Executive | | | Base Salary Used for Equity Award | | | Total Target Equity Award as a % of Base Salary(1) | | | PB-PIU % of Total Target Equity | | | Target Award Value of PB-PIUs | | | Number of PB-PIUs Awarded(2) | | | Fair Value of PB-PIUs Awarded(3) | | ||||||||||||||||||
Stephen E. Budorick | | | | $ | 750,000 | | | | | | 400% | | | | | | 60% | | | | | $ | 1,799,996 | | | | | | 138,408 | | | | | $ | 2,078,196 | | |
Todd Hartman | | | | $ | 425,000 | | | | | | 195% | | | | | | 60% | | | | | $ | 497,259 | | | | | | 38,236 | | | | | $ | 574,114 | | |
Anthony Mifsud | | | | $ | 446,000 | | | | | | 215% | | | | | | 60% | | | | | $ | 575,341 | | | | | | 44,240 | | | | | $ | 664,264 | | |
Name of Executive | Base Salary Used for Equity Award | Total Target Equity Award as a % of Base Salary(1) | PB-PIU % of Total Target Equity | Target Award Value of PB-PIUs | Number of PB-PIUs Awarded(2) | Fair Value of PB-PIUs Awarded(3) | ||||||||||||||||||||||||||||||||
Stephen E. Budorick | $ | 775,000 | 450 | % | 60 | % | $ | 2,092,488 | 162,112 | $ | 2,556,506 | |||||||||||||||||||||||||||
Anthony Mifsud | $ | 456,000 | 235 | % | 60 | % | $ | 642,957 | 49,812 | $ | 785,535 | |||||||||||||||||||||||||||
Todd Hartman(4) | $ | 456,000 | 235 | % | 60 | % | $ | 642,957 | 49,812 | $ | 785,535 |
Percentile Rank | Earned PB-PIUs Payout % | |||||||||
75th or greater | 100% of PB-PIUs granted | |||||||||
50th (target) | 50% of PB-PIUs granted | |||||||||
25th | 25% of PB-PIUs granted | |||||||||
Below 25th | 0% of PB-PIUs granted |
34 | COPT Defense Properties |
Name of Executive | | | Base Salary Used for Equity Award | | | Total Target Equity Award as a % of Base Salary(1) | | | TB-PIU % of Total Target Equity | | | Value of TB-PIUs Awarded | | | Number of TB-PIUs Awarded | | |||||||||||||||
Stephen E. Budorick | | | | $ | 750,000 | | | | | | 400% | | | | | | 40% | | | | | $ | 1,200,004 | | | | | | 46,154 | | |
Todd Hartman | | | | $ | 425,000 | | | | | | 195% | | | | | | 40% | | | | | $ | 331,500 | | | | | | 12,750 | | |
Anthony Mifsud | | | | $ | 446,000 | | | | | | 215% | | | | | | 40% | | | | | $ | 383,552 | | | | | | 14,752 | | |
Name of Executive | Base Salary Used for Equity Award | Total Target Equity Award as a % of Base Salary(1) | TB % of Total Target Equity | Value of TB-PIUs or RSs Awarded | Number of TB-PIUs or RSs Awarded | |||||||||||||||||||||||||||
Stephen E. Budorick | $ | 775,000 | 450 | % | 40 | % | $ | 1,395,001 | 54,238 | |||||||||||||||||||||||
Anthony Mifsud | $ | 456,000 | 235 | % | 40 | % | $ | 428,650 | 16,666 | |||||||||||||||||||||||
Todd Hartman(2) | $ | 456,000 | 235 | % | 40 | % | $ | 428,650 | 16,666 |
2024 Proxy Statement | 35 |
Role | Value of Common Shares to be Owned | |||||||||
Trustees | 5 times annual retainer and fees for four quarterly meetings | |||||||||
CEO | 6 times base salary | |||||||||
COO | 3 times base salary | |||||||||
CFO | 3 times base salary |
36 | COPT Defense Properties |
2024 Proxy Statement | 37 |
Name and Principal Position | | | Year | | | Salary(1) | | | Equity-Based Compensation Awards(2) | | | Non-Equity Incentive Plan Compensation(3) | | | Bonus(4) | | | All Other Compensation(5) | | | Total | | |||||||||||||||||||||
Stephen E. Budorick President + CEO | | | | | 2021 | | | | | $ | 749,712 | | | | | $ | 3,278,200 | | | | | $ | 1,462,500 | | | | | $ | — | | | | | $ | 12,150 | | | | | $ | 5,502,562 | | |
| | | 2020 | | | | | $ | 751,923 | | | | | $ | 2,741,199 | | | | | $ | 1,044,290 | | | | | $ | — | | | | | $ | 11,400 | | | | | $ | 4,548,812 | | | ||
| | | 2019 | | | | | $ | 697,924 | | | | | $ | 2,346,010 | | | | | $ | 1,263,990 | | | | | $ | — | | | | | $ | 11,200 | | | | | $ | 4,319,124 | | | ||
Todd Hartman EVP + COO | | | | | 2021 | | | | | $ | 425,000 | | | | | $ | 905,614 | | | | | $ | 733,125 | | | | | $ | 115,385 | | | | | $ | 9,836 | | | | | $ | 2,188,960 | | |
| | | 2020 | | | | | $ | 24,519 | | | | | $ | 616,988 | | | | | $ | — | | | | | $ | 9,615 | | | | | $ | — | | | | | $ | 651,122 | | | ||
Anthony Mifsud EVP + CFO | | | | | 2021 | | | | | $ | 445,946 | | | | | $ | 1,047,816 | | | | | $ | 769,350 | | | | | $ | — | | | | | $ | 11,600 | | | | | $ | 2,274,712 | | |
| | | 2020 | | | | | $ | 455,478 | | | | | $ | 924,756 | | | | | $ | 575,718 | | | | | $ | — | | | | | $ | 12,179 | | | | | $ | 1,968,131 | | | ||
| | | 2019 | | | | | $ | 428,983 | | | | | $ | 743,810 | | | | | $ | 653,605 | | | | | $ | — | | | | | $ | 11,950 | | | | | $ | 1,838,348 | | |
Name and Principal Position | Year | Salary | Equity-Based Compensation Awards(1) | Non-Equity Incentive Plan Compensation(2) | Bonus(3) | All Other Compensation(4) | Total | |||||||||||||||||||||||||||||||||||||
Stephen E. Budorick | 2023 | $ | 775,000 | $ | 3,951,507 | $ | 1,428,635 | $ | — | $ | 13,200 | $ | 6,168,342 | |||||||||||||||||||||||||||||||
President + CEO | 2022 | $ | 774,038 | $ | 3,583,054 | $ | 1,177,768 | $ | — | $ | 12,200 | $ | 5,547,060 | |||||||||||||||||||||||||||||||
2021 | $ | 749,712 | $ | 3,278,200 | $ | 1,462,500 | $ | — | $ | 12,150 | $ | 5,502,562 | ||||||||||||||||||||||||||||||||
Britt A. Snider | 2023 | $ | 17,981 | $ | 599,995 | $ | — | $ | 23,077 | $ | — | $ | 641,053 | |||||||||||||||||||||||||||||||
EVP + COO | ||||||||||||||||||||||||||||||||||||||||||||
Anthony Mifsud | 2023 | $ | 456,000 | $ | 1,214,185 | $ | 743,599 | $ | — | $ | 13,200 | $ | 2,426,984 | |||||||||||||||||||||||||||||||
EVP + CFO | 2022 | $ | 455,615 | $ | 1,092,238 | $ | 613,024 | $ | — | $ | 13,224 | $ | 2,174,101 | |||||||||||||||||||||||||||||||
2021 | $ | 445,946 | $ | 1,047,816 | $ | 769,350 | $ | — | $ | 11,600 | $ | 2,274,712 | ||||||||||||||||||||||||||||||||
Todd Hartman(5) | 2023 | $ | 94,362 | $ | 1,214,185 | $ | — | $ | — | $ | 639,507 | $ | 1,948,054 | |||||||||||||||||||||||||||||||
Former EVP + COO | 2022 | $ | 446,154 | $ | 995,974 | $ | 600,924 | $ | — | $ | 12,200 | $ | 2,055,252 | |||||||||||||||||||||||||||||||
2021 | $ | 425,000 | $ | 905,614 | $ | 733,125 | $ | 115,385 | $ | 9,836 | $ | 2,188,960 |
38 | COPT Defense Properties |
Name | | | Year | | | Matching of Contributions to 401(k) Plans | | | Other | | | Total | | ||||||||||||
Stephen E. Budorick | | | | | 2021 | | | | | $ | 11,600 | | | | | $ | 550 | | | | | $ | 12,150 | | |
| | | 2020 | | | | | $ | 11,400 | | | | | $ | — | | | | | $ | 11,400 | | | ||
| | | 2019 | | | | | $ | 11,200 | | | | | $ | — | | | | | $ | 11,200 | | | ||
Todd Hartman | | | | | 2021 | | | | | $ | 9,785 | | | | | $ | 51 | | | | | $ | 9,836 | | |
| | | 2020 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | ||
Anthony Mifsud | | | | | 2021 | | | | | $ | 11,600 | | | | | $ | — | | | | | $ | 11,600 | | |
| | | 2020 | | | | | $ | 11,400 | | | | | $ | 779 | | | | | $ | 12,179 | | | ||
| | | 2019 | | | | | $ | 11,200 | | | | | $ | 750 | | | | | $ | 11,950 | | |
Name | Year | Matching of Contributions to 401(k) Plans | Consulting Agreement Payments | Other | Total | |||||||||||||||||||||||||||
Stephen E. Budorick | 2023 | $ | 13,200 | $ | — | $ | — | $ | 13,200 | |||||||||||||||||||||||
2022 | $ | 12,200 | $ | — | $ | — | $ | 12,200 | ||||||||||||||||||||||||
2021 | $ | 11,600 | $ | — | $ | 550 | $ | 12,150 | ||||||||||||||||||||||||
Britt A. Snider | 2023 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Anthony Mifsud | 2023 | $ | 13,200 | $ | — | $ | — | $ | 13,200 | |||||||||||||||||||||||
2022 | $ | 12,200 | $ | — | $ | 1,024 | $ | 13,224 | ||||||||||||||||||||||||
2021 | $ | 11,600 | $ | — | $ | — | $ | 11,600 | ||||||||||||||||||||||||
Todd Hartman(1) | 2023 | $ | 13,200 | $ | 584,500 | $ | 41,807 | $ | 639,507 | |||||||||||||||||||||||
2022 | $ | 12,200 | $ | — | $ | — | $ | 12,200 | ||||||||||||||||||||||||
2021 | $ | 9,785 | $ | — | $ | 51 | $ | 9,836 |
Name | | | Type | | | Grant Date | | | Date of Board Action (1) | | | Estimated Possible Payouts Under Non-Equity Incentive Plan Awards ($)(2) | | | Estimated Possible Payouts Under Equity Incentive Plan Awards (#)(3) | | | All Other Stock Awards: Number of Shares of Stock (#)(4) | | | Grant Date Fair Value of Stock Awards ($)(3)(4)(5) | | ||||||||||||||||||||||||||||||||||||||||||
| Threshold | | | Target | | | High | | | Threshold | | | Target | | | Maximum | | |||||||||||||||||||||||||||||||||||||||||||||||
Stephen E. Budorick | | | AIA | | | | | | | | | | | 11/11/2020 | | | | | | 487,500 | | | | | | 975,000 | | | | | | 1,462,500 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PB-PIU | | | | | 1/1/2021 | | | | | | 11/11/2020 | | | | | | | | | | | | | | | | | | | | | | | | 34,602 | | | | | | 69,204 | | | | | | 138,408 | | | | | | | | | | | | 2,078,196 | | | ||
| TB-PIU | | | | | 3/1/2021 | | | | | | 11/11/2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 46,154 | | | | | | 1,200,004 | | | ||
Todd Hartman | | | AIA | | | | | | | | | | | 11/11/2020 | | | | | | 244,375 | | | | | | 488,750 | | | | | | 733,125 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PB-PIU | | | | | 1/1/2021 | | | | | | 11/11/2020 | | | | | | | | | | | | | | | | | | | | | | | | 9,559 | | | | | | 19,118 | | | | | | 38,236 | | | | | | | | | | | | 574,114 | | | ||
| TB-PIU | | | | | 3/1/2021 | | | | | | 11/11/2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 12,750 | | | | | | 331,500 | | | ||
Anthony Mifsud | | | AIA | | | | | | | | | | | 11/11/2020 | | | | | | 256,450 | | | | | | 512,900 | | | | | | 769,350 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| PB-PIU | | | | | 1/1/2021 | | | | | | 11/11/2020 | | | | | | | | | | | | | | | | | | | | | | | | 11,060 | | | | | | 22,120 | | | | | | 44,240 | | | | | | | | | | | | 664,264 | | | ||
| TB-PIU | | | | | 3/1/2021 | | | | | | 11/11/2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 14,752 | | | | | | 383,552 | | |
Name | Type | Grant Date | Date of Board Action(1) | Estimated Possible Payouts Under Non-Equity Incentive Plan Awards ($)(2) | Estimated Possible Payouts Under Equity Incentive Plan Awards (#)(3) | All Other Stock Awards: Number of Shares of Stock (#)(4) | Grant Date Fair Value of Stock Awards ($)(3)(4)(5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Threshold | Target | High | Threshold | Target | Maximum | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stephen E. Budorick | AIA | 11/9/2022 | 503,750 | 1,007,500 | 1,511,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PB-PIU | 1/1/2023 | 11/9/2022 | 40,528 | 81,056 | 162,112 | 2,556,506 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TB-PIU | 3/1/2023 | 11/9/2022 | 54,238 | 1,395,001 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Britt A. Snider | TB-PIU | 12/1/2023 | 23,474 | 599,995 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Anthony Mifsud | AIA | 11/9/2022 | 262,200 | 524,400 | 786,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PB-PIU | 1/1/2023 | 11/9/2022 | 12,453 | 24,906 | 49,812 | 785,535 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TB-PIU | 3/1/2023 | 11/9/2022 | 16,666 | 428,650 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Todd Hartman | AIA | 11/9/2022 | 262,200 | 524,400 | 786,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PB-PIU | 1/1/2023 | 11/9/2022 | 12,453 | 24,906 | 49,812 | 785,535 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TB-PIU | 3/1/2023 | 11/9/2022 | 16,666 | 428,650 |
2024 Proxy Statement | 39 |
| | | | | | | | | Stock Awards | | |||||||||||||||||||||
Name | | | Grant Date | | | Number of Time-Based Equity Awards That Have Not Vested(1) | | | Market Value of Time-Based Awards That Have Not Vested ($)(2) | | | Equity Incentive Plan Awards: Number of Unearned Units(3) | | | Equity Incentive Plan Awards: Market or Payout Value of Unearned Units ($)(4) | | |||||||||||||||
Stephen E. Budorick | | | | | 3/1/2019 | | | | | | 11,210 | | | | | | 313,544 | | | | | | — | | | | | | — | | |
| | | 1/1/2020 | | | | | | — | | | | | | — | | | | | | 105,546 | | | | | | 2,952,122 | | | ||
| | | 3/1/2020 | | | | | | 26,704 | | | | | | 746,911 | | | | | | — | | | | | | — | | | ||
| | | 1/1/2021 | | | | | | — | | | | | | — | | | | | | 71,381 | | | | | | 1,996,527 | | | ||
| | | 3/1/2021 | | | | | | 46,154 | | | | | | 1,290,927 | | | | | | — | | | | | | — | | | ||
Todd Hartman | | | | | 12/1/2020 | | | | | | 18,612 | | | | | | 520,578 | | | | | | — | | | | | | — | | |
| | | 1/1/2021 | | | | | | — | | | | | | — | | | | | | 19,719 | | | | | | 551,540 | | | ||
| | | 3/1/2021 | | | | | | 12,750 | | | | | | 356,618 | | | | | | — | | | | | | — | | | ||
Anthony Mifsud | | | | | 3/1/2019 | | | | | | 3,555 | | | | | | 99,433 | | | | | | — | | | | | | — | | |
| | | 1/1/2020 | | | | | | — | | | | | | — | | | | | | 35,606 | | | | | | 995,900 | | | ||
| | | 3/1/2020 | | | | | | 9,009 | | | | | | 251,982 | | | | | | — | | | | | | — | | | ||
| | | 1/1/2021 | | | | | | — | | | | | | — | | | | | | 22,816 | | | | | | 638,164 | | | ||
| | | 3/1/2021 | | | | | | 14,752 | | | | | | 412,613 | | | | | | — | | | | | | — | | |
Stock Awards | ||||||||||||||||||||||||||||||||
Name | Grant Date | Number of Time-Based Equity Awards That Have Not Vested(1) | Market Value of Time-Based Awards That Have Not Vested ($)(2) | Equity Incentive Plan Awards: Number of Unearned Units(3) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Units ($)(4) | |||||||||||||||||||||||||||
Stephen E. Budorick | 3/1/2021 | 15,386 | 394,343 | — | — | |||||||||||||||||||||||||||
1/1/2022 | — | — | 74,753 | 1,915,919 | ||||||||||||||||||||||||||||
3/1/2022 | 32,280 | 827,336 | — | — | ||||||||||||||||||||||||||||
1/1/2023 | — | — | 83,940 | 2,151,382 | ||||||||||||||||||||||||||||
3/1/2023 | 54,238 | 1,390,120 | — | — | ||||||||||||||||||||||||||||
Britt A. Snider | 12/1/2023 | 23,474 | 601,639 | — | — | |||||||||||||||||||||||||||
Anthony Mifsud | 3/1/2021 | 4,918 | 126,048 | — | — | |||||||||||||||||||||||||||
1/1/2022 | — | — | 22,787 | 584,031 | ||||||||||||||||||||||||||||
3/1/2022 | 9,840 | 252,199 | — | — | ||||||||||||||||||||||||||||
1/1/2023 | — | — | 25,792 | 661,049 | ||||||||||||||||||||||||||||
3/1/2023 | 16,666 | 427,150 | — | — |
40 | COPT Defense Properties |
Name | | | Number of Shares Acquired on Vesting(1) | | | Value Realized on Vesting(2) | | ||||||
Stephen E. Budorick | | | | | 152,495 | | | | | $ | 4,198,366 | | |
Todd Hartman | | | | | 4,653 | | | | | $ | 119,396 | | |
Anthony Mifsud | | | | | 48,547 | | | | | $ | 1,336,251 | | |
Name | Number of Shares Acquired on Vesting(1) | Value Realized on Vesting(2) | ||||||||||||
Stephen E. Budorick | 199,761 | $ | 5,110,899 | |||||||||||
Anthony Mifsud | 63,849 | $ | 1,633,581 | |||||||||||
Todd Hartman | 8,736 | $ | 222,156 |
Value of Initial Fixed $100 Investment Based on(4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year | Summary Compensation Table Total for CEO(1) | Compensation Actually Paid to CEO(2) | Average Summary Compensation Table Total for Non-CEO NEOs(3) | Compensation Actually Paid to Non-CEO NEOs(2) | COPT Defense Total Shareholder Return | Office Property Sector of FTSE Nareit All Equity REITs Index Total Shareholder Return(5) | Net Income(6) | FFO per Share(7) | |||||||||||||||||||||||||||||||||||||||||||||
2023 | $ | 6,168,342 | $ | 7,178,869 | $ | 1,672,030 | $ | 559,464 | $ | 103.90 | $ | 63.34 | $ | (74,347) | $ | 2.42 | |||||||||||||||||||||||||||||||||||||
2022 | $ | 5,547,060 | $ | 8,518,704 | $ | 2,114,677 | $ | 2,814,964 | $ | 100.32 | $ | 62.07 | $ | 178,822 | $ | 2.36 | |||||||||||||||||||||||||||||||||||||
2021 | $ | 5,502,562 | $ | 7,170,639 | $ | 2,231,836 | $ | 2,539,830 | $ | 103.69 | $ | 99.51 | $ | 81,578 | $ | 2.29 | |||||||||||||||||||||||||||||||||||||
2020 | $ | 4,548,812 | $ | 4,844,929 | $ | 1,405,232 | $ | 550,795 | $ | 92.89 | $ | 81.56 | $ | 102,878 | $ | 2.12 | |||||||||||||||||||||||||||||||||||||
2024 Proxy Statement | 41 |
CEO | Non-CEO NEOs | |||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2023 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Summary Compensation Table Total Compensation | $ | 6,168,342 | $ | 5,547,060 | $ | 5,502,562 | $ | 4,548,812 | $ | 1,672,030 | $ | 2,114,677 | $ | 2,231,836 | $ | 1,405,232 | ||||||||||||||||||||||||||||||||||
Subtract: Grant Date Fair Value of Awards in Year(1) | (3,951,507) | (3,583,054) | (3,278,200) | (2,741,199) | (1,009,455) | (1,044,106) | (976,715) | (822,167) | ||||||||||||||||||||||||||||||||||||||||||
Add: Year End Fair Value of Outstanding and Unvested Awards Granted in Year(2) | 3,997,691 | 4,228,174 | 3,454,244 | 2,552,887 | 610,005 | 1,232,094 | 1,029,165 | 489,327 | ||||||||||||||||||||||||||||||||||||||||||
Add/Subtract: Change in Fair Value of Outstanding and Unvested Prior Year Grants(3) | 20,856 | 1,066,829 | 338,161 | (73,623) | 2,096 | 307,193 | 74,414 | (7,703) | ||||||||||||||||||||||||||||||||||||||||||
Add/Subtract: Change in Fair Value of Vested Prior Year Grants(4) | 627,112 | 892,804 | 892,746 | 533,320 | 65,331 | 146,828 | 140,535 | 33,458 | ||||||||||||||||||||||||||||||||||||||||||
Subtract: Prior Year End Value of Grants Forfeited in Year(5) | — | — | — | — | (816,120) | — | — | (550,372) | ||||||||||||||||||||||||||||||||||||||||||
Add: Dividends and Distributions on Stock Awards Not Included in Award Fair Value(6) | 316,375 | 366,891 | 261,126 | 24,732 | 35,577 | 58,278 | 40,595 | 3,020 | ||||||||||||||||||||||||||||||||||||||||||
Compensation Actually Paid | $ | 7,178,869 | $ | 8,518,704 | $ | 7,170,639 | $ | 4,844,929 | $ | 559,464 | $ | 2,814,964 | $ | 2,539,830 | $ | 550,795 |
42 | COPT Defense Properties |
2024 Proxy Statement | 43 |
44 | COPT Defense Properties |
Name | | | Cash Severance Payments | | | Continuation of Medical/ Welfare Benefits(1) | | | Value of Time-Based Vestings(2) | | | Value of Performance-Based Vestings(3) | | | Total Termination Benefits | | |||||||||||||||
Stephen E. Budorick | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Premature/Constructive Termination | | | | $ | 4,697,033 | | | | | $ | 31,229 | | | | | $ | 2,351,382 | | | | | $ | 2,474,121 | | | | | $ | 9,553,765 | | |
Constructive Termination in Connection with Change in Control | | | | $ | 6,539,440 | | | | | $ | 31,229 | | | | | $ | 2,351,382 | | | | | $ | 2,474,121 | | | | | $ | 11,396,172 | | |
Change in Control | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,474,121 | | | | | $ | 2,474,121 | | |
Death or Disability | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 2,474,121 | | | | | $ | 2,474,121 | | |
Todd Hartman | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Premature/Constructive Termination | | | | $ | 1,402,500 | | | | | $ | 9,427 | | | | | $ | 877,195 | | | | | $ | 139,796 | | | | | $ | 2,428,918 | | |
Constructive Termination in Connection with Change in Control | | | | $ | 3,220,863 | | | | | $ | 9,427 | | | | | $ | 877,195 | | | | | $ | 139,796 | | | | | $ | 4,247,281 | | |
Change in Control | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 139,796 | | | | | $ | 139,796 | | |
Death or Disability | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 139,796 | | | | | $ | 139,796 | | |
Anthony Mifsud | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Premature/Constructive Termination | | | | $ | 1,535,108 | | | | | $ | 15,615 | | | | | $ | 764,029 | | | | | $ | 825,681 | | | | | $ | 3,140,432 | | |
Constructive Termination in Connection with Change in Control | | | | $ | 3,569,301 | | | | | $ | 15,615 | | | | | $ | 764,029 | | | | | $ | 825,681 | | | | | $ | 5,174,625 | | |
Change in Control | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 825,681 | | | | | $ | 825,681 | | |
Death or Disability | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 825,681 | | | | | $ | 825,681 | | |
Name | Cash Severance Payments | Continuation of Medical/Welfare Benefits(1) | Value of Time-Based Vestings(2) | Value of Performance-Based Vestings(3) | Total Termination Benefits | ||||||||||||||||||||||||
Stephen E. Budorick | |||||||||||||||||||||||||||||
Premature/Constructive Termination | $ | 5,013,872 | $ | 25,330 | $ | 2,611,800 | $ | 1,996,059 | $ | 9,647,061 | |||||||||||||||||||
Constructive Termination in Connection with Change in Control | $ | 6,997,026 | $ | 25,330 | $ | 2,611,800 | $ | 1,996,059 | $ | 11,630,215 | |||||||||||||||||||
Change in Control | $ | — | $ | — | $ | — | $ | 1,996,059 | $ | 1,996,059 | |||||||||||||||||||
Death or Disability | $ | — | $ | — | $ | — | $ | 1,996,059 | $ | 1,996,059 | |||||||||||||||||||
Britt A. Snider | |||||||||||||||||||||||||||||
Premature/Constructive Termination | $ | 913,750 | $ | 12,665 | $ | 601,639 | $ | — | $ | 1,528,054 | |||||||||||||||||||
Constructive Termination in Connection with Change in Control | $ | 2,732,113 | $ | 12,665 | $ | 601,639 | $ | — | $ | 3,346,417 | |||||||||||||||||||
Change in Control | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Death or Disability | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Anthony Mifsud | |||||||||||||||||||||||||||||
Premature/Constructive Termination | $ | 1,633,097 | $ | 11,065 | $ | 805,397 | $ | 610,211 | $ | 3,059,770 | |||||||||||||||||||
Constructive Termination in Connection with Change in Control | $ | 3,839,405 | $ | 11,065 | $ | 805,397 | $ | 610,211 | $ | 5,266,078 | |||||||||||||||||||
Change in Control | $ | — | $ | — | $ | — | $ | 610,211 | $ | 610,211 | |||||||||||||||||||
Death or Disability | $ | — | $ | — | $ | — | $ | 610,211 | $ | 610,211 |
2024 Proxy Statement | 45 |
Proposal 3 | APPROVAL OF AN AMENDMENT TO OUR 2017 OMNIBUS EQUITY AND INCENTIVE PLAN | Our Board recommends a vote FOR this proposal. | ||||||
The Board is asking shareholders to approve an amendment (the “Amendment”) to our 2017 Omnibus Equity and Incentive Plan (the "2017 Plan") previously approved by our shareholders in May 2017 and subsequently amended by the Board. The Board adopted the amendment on March 15, 2024, subject to, and to become effective upon, shareholder approval. The purpose of the Amendment is to increase the number of shares reserved and available under the 2017 Plan from 3,400,000 Shares to 6,900,000. |
As of March 8, 2024 | ||||||||||||||||||||
RSs | 360,103 | |||||||||||||||||||
Unvested PB-PIUs(1) | 743,454 | |||||||||||||||||||
Unvested TB-PIUs | 229,133 | |||||||||||||||||||
Deferred share awards, vested and unvested(2) | 79,269 | |||||||||||||||||||
Dilution associated with outstanding awards (A) | 1,411,959 | |||||||||||||||||||
Outstanding common shares and units, including RSs and vested PIUs | 114,562,180 | |||||||||||||||||||
Overhang | 1.2 | % | ||||||||||||||||||
Shares available under 2017 Plan | 396,445 | |||||||||||||||||||
Additional shares assuming approval of the Amendment | 3,500,000 | |||||||||||||||||||
Shares available under 2017 Plan including additional shares under Amendment (B) | 3,896,445 | |||||||||||||||||||
Dilution associated with awards outstanding or available under 2017 Plan and additional shares under Amendment (A+B) | 5,308,404 | |||||||||||||||||||
Outstanding common shares and units, including RSs and vested PIUs | 114,562,180 | |||||||||||||||||||
Overhang assuming approval of the Amendment | 4.6 | % |
46 | COPT Defense Properties |
2023 | 2022 | 2021 | ||||||||||||||||||
Share options granted (A) | — | — | — | |||||||||||||||||
Time-based full-value awards granted(1) | 353,282 | 295,252 | 275,394 | |||||||||||||||||
Performance-based full-value awards settled(2) | 141,152 | 156,104 | 93,824 | |||||||||||||||||
Total full-value awards (B) | 494,434 | 451,356 | 369,218 | |||||||||||||||||
Weighted average common shares/units outstanding during the fiscal year (C)(3) | 113,840,000 | 113,527,000 | 113,217,000 | |||||||||||||||||
Annual Burn Rate ((A+B)/C)(4) | 0.43 | % | 0.40 | % | 0.33 | % | ||||||||||||||
Three Year Average Burn Rate(5) | 0.39 | % | ||||||||||||||||||
ISS industry category burn rate threshold | 1.05 | % |
48 | COPT Defense Properties |
2024 Proxy Statement | 49 |
50 | COPT Defense Properties |
2024 Proxy Statement | 51 |
52 | COPT Defense Properties |
Plan Category | | | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) | | | Weighted-average Exercise Price of Outstanding Options, Warrants and Rights (b) | | | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities in Column (a)) (c) | | |||||||||
Equity compensation plans approved by security holders | | | | | 829,804(1) | | | | | | N/A(2) | | | | | | 1,876,109(3) | | |
Equity compensation plans not approved by security holders | | | | | — | | | | | | N/A | | | | | | — | | |
Total | | | | | 829,804 | | | | | | N/A | | | | | | 1,876,109 | | |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a) | Weighted-average Exercise Price of Outstanding Options, Warrants and Rights (b) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities in Column (a)) (c) | |||||||||||||||||
Equity compensation plans approved by security holders | 1,463,349 | (1) | N/A | (2) | 934,764 | (3) | ||||||||||||||
Equity compensation plans not approved by security holders | — | N/A | — | |||||||||||||||||
Total | 1,463,349 | N/A | 934,764 |
2024 Proxy Statement | 53 |
Proposal 4 | RATIFICATION OF THE APPOINTMENT OF INDEPENDENT AUDITOR | Our Board recommends a vote FOR this proposal. | ||||||||||||
The Audit Committee has selected and appointed PwC as our |
| | | 2021 | | | 2020 | | ||||||
Audit fees(1) | | | | $ | 1,938,354 | | | | | $ | 1,896,352 | | |
Audit-related fees(2) | | | | | 67,099 | | | | | | 64,518 | | |
Tax fees(3) | | | | | 344,150 | | | | | | 365,971 | | |
Total | | | | $ | 2,349,603 | | | | | $ | 2,326,841 | | |
2023 | 2022 | ||||||||||
Audit fees(1) | $ | 2,094,459 | $ | 1,905,653 | |||||||
Audit-related fees(2) | 76,407 | 72,769 | |||||||||
Tax fees(3) | 346,150 | 331,600 | |||||||||
All other fees(4) | — | 41,000 | |||||||||
Total | $ | 2,517,016 | $ | 2,351,022 |
54 | COPT Defense Properties |
2024 Proxy Statement | 55 |
AUDIT COMMITTEE | |||||||||||
Lisa G. Trimberger, Chair Robert L. Denton, Sr. Steven D. Kesler Letitia A. Long | Essye B. Miller |
56 | COPT Defense Properties |
| | | Common Share Beneficially Owned(1) | | | Percent of All Common Shares Beneficially Owned(2) | | | Awards Available within 60 days after March 4, 2022(3) | | |||||||||
BlackRock, Inc.(4) | | | | | 17,831,166 | | | | | | 15.86% | | | | | | — | | |
The Vanguard Group(5) | | | | | 16,552,053 | | | | | | 14.72% | | | | | | — | | |
State Street Corporation(6) | | | | | 5,982,371 | | | | | | 5.32% | | | | | | — | | |
FMR LLC(7) | | | | | 5,685,677 | | | | | | 5.06% | | | | | | — | | |
Trustees and executive officers | | | | | | | | | | | | | | | | | | | |
Thomas F. Brady | | | | | 32,996 | | | | | | * | | | | | | 19,509 | | |
Robert L. Denton, Sr.(8) | | | | | 238,930 | | | | | | * | | | | | | — | | |
Philip L. Hawkins(9) | | | | | 28,142 | | | | | | * | | | | | | 15,188 | | |
David M. Jacobstein | | | | | 9,567 | | | | | | * | | | | | | — | | |
Steven D. Kesler | | | | | 34,568 | | | | | | * | | | | | | — | | |
Letitia A. Long | | | | | 2,707 | | | | | | * | | | | | | 2,707 | | |
Raymond L. Owens | | | | | 906 | | | | | | * | | | | | | — | | |
C. Taylor Pickett(10) | | | | | 79,404 | | | | | | * | | | | | | 15,188 | | |
Lisa G. Trimberger(11) | | | | | 18,756 | | | | | | * | | | | | | 7,444 | | |
Stephen E. Budorick(12) | | | | | 383,978 | | | | | | * | | | | | | — | | |
Todd Hartman(13) | | | | | 8,903 | | | | | | * | | | | | | — | | |
Anthony Mifsud(14) | | | | | 121,851 | | | | | | * | | | | | | — | | |
All trustees and executive officers as a group (12 persons)(8) | | | | | 960,708 | | | | | | 0.85% | | | | | | 60,036 | | |
Common Shares Beneficially Owned(1) | Percent of All Common Shares Beneficially Owned(2) | Awards Available within 60 days after March 8, 2024(3) | |||||||||||||||
BlackRock, Inc.(4) | 17,908,018 | 15.90 | % | — | |||||||||||||
The Vanguard Group(5) | 16,664,736 | 14.79 | % | — | |||||||||||||
State Street Corporation(6) | 6,893,387 | 6.12 | % | — | |||||||||||||
Trustees and executive officers | |||||||||||||||||
Thomas F. Brady | 40,353 | * | 26,866 | ||||||||||||||
Robert L. Denton, Sr.(7) | 186,287 | * | — | ||||||||||||||
Philip L. Hawkins(8) | 35,499 | * | 15,188 | ||||||||||||||
Steven D. Kesler | 41,313 | * | — | ||||||||||||||
Letitia A. Long(9) | 10,064 | * | 2,707 | ||||||||||||||
Essye B. Miller | 2,830 | * | 2,830 | ||||||||||||||
Raymond L. Owens(10) | 8,263 | * | — | ||||||||||||||
C. Taylor Pickett(11) | 86,761 | * | 15,188 | ||||||||||||||
Lisa G. Trimberger(12) | 19,863 | * | 7,444 | ||||||||||||||
Stephen E. Budorick(13) | 582,986 | * | — | ||||||||||||||
Britt Snider | 1,000 | * | — | ||||||||||||||
Anthony Mifsud(14) | 185,698 | * | — | ||||||||||||||
Todd Hartman(15) | 17,806 | * | — | ||||||||||||||
All trustees and executive officers as a group (12 persons)(16) | 1,200,917 | 1.06 | % | 70,223 |
2024 Proxy Statement | 57 |
58 | COPT Defense Properties |
2024 Proxy Statement | 59 |
60 | COPT Defense Properties |
2024 Proxy Statement | 61 |
62 | COPT Defense Properties |
2024 Proxy Statement | A-1 |
B-1 | COPT Defense Properties |
2024 Proxy Statement | B-2 |
B-3 | COPT Defense Properties |
2024 Proxy Statement | B-4 |
B-5 | COPT Defense Properties |
2024 Proxy Statement | B-6 |
B-7 | COPT Defense Properties |
2024 Proxy Statement | B-8 |
B-9 | COPT Defense Properties |
2024 Proxy Statement | B-10 |
B-11 | COPT Defense Properties |
2024 Proxy Statement | C-1 |