Form 4: Macerich Co. Executive Ann C. Menard Acquires 40,368 LTIP Units Following Performance-Based Vesting

Ann C. Menard, Chief Legal Officer/Secretary of Macerich Co., reports the acquisition of 40,368 LTIP units that vested based on the company's performance, convertible into common stock.

Summary

• On April 26, 2024, Ann C. Menard, Chief Legal Officer/Secretary of Macerich Co., filed a Form 4 disclosing a transaction involving Long-Term Incentive Plan (LTIP) units.
• Menard acquired 40,368 LTIP units on April 24, 2024, which vested based on the company's performance between January 1, 2021, and December 31, 2023.
• These LTIP units are convertible into common units of limited partnership interest in The Macerich Partnership, LP, and subsequently redeemable for cash or Macerich Co. common stock.
• The reporting person now beneficially owns 175,497 shares.
• The LTIP Units vested on December 31, 2023 and must be retained by the reporting person until December 31, 2024.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of LTIP units indicates the company met certain performance goals, which is a positive sign. However, it's a routine transaction and doesn't necessarily indicate a major shift in the company's outlook.

Positives

• The vesting of LTIP units suggests that Macerich Co. achieved certain performance criteria during the specified period, which could be viewed positively.

Future Outlook

The acquired LTIP units are subject to continued retention until December 31, 2024, and can be converted into common units and redeemed for cash or common stock, influencing the executive's stake in the company's future performance.

Industry Context

This filing reflects standard executive compensation practices within publicly traded companies, utilizing long-term incentive plans to align management's interests with those of shareholders.

Comparison to Industry Standards

• LTIPs are a common form of executive compensation in the real estate industry, aligning executive incentives with long-term shareholder value.
• The vesting of LTIP units based on performance criteria is a standard practice, similar to companies like Simon Property Group and Brookfield Property Partners.
• The conversion of LTIP units into common stock or cash is also a typical feature, providing flexibility to the executive.

Stakeholder Impact

• The vesting of LTIP units aligns the executive's interests with those of shareholders, potentially incentivizing actions that increase shareholder value.

Key Dates