Form 4: Macerich Director Coppola Acquires 191,220 LTIP Units Following Performance-Based Vesting

Director Edward C. Coppola acquired 191,220 Long-Term Incentive Plan (LTIP) units of Macerich Co. following the vesting of performance-based units.

Summary

• On April 24, 2024, Edward C. Coppola, a director of Macerich Co., reported the acquisition of 191,220 LTIP units.
• These units vested due to the achievement of pre-established performance criteria related to the company's performance from January 1, 2021, through December 31, 2023.
• The Compensation Committee determined that 83.7% of the target amount of 228,426 LTIP units were earned.
• Each LTIP unit can be converted into a common unit of limited partnership interest, which can then be redeemed for cash or Macerich common stock.
• The LTIP units vested on December 31, 2023, and must be retained by the reporting person until December 31, 2024.
• Following the transaction, Coppola directly owns 214,650 shares of Macerich Co.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of LTIP units suggests that the company met certain performance targets, which is generally 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 indicates that Macerich achieved certain performance goals during the specified period.
• The director's increased stake in the company aligns his interests with those of shareholders.

Future Outlook

The LTIP units are subject to retention until December 31, 2024, and can be converted into common units, which can be redeemed for cash or common stock at the holder's election.

Industry Context

This filing reflects standard executive compensation practices within publicly traded companies, where performance-based equity awards are used to incentivize and align management's interests with shareholder value.

Comparison to Industry Standards

• LTIPs are a common form of executive compensation in the real estate industry, aligning executive pay with company performance.
• Similar programs are used by peers such as Simon Property Group and Brookfield Property Partners to incentivize long-term value creation.
• The vesting criteria and retention periods are generally in line with industry norms for such awards.

Stakeholder Impact

• Shareholders may view the vesting of LTIP units as a positive sign, indicating that management is incentivized to improve company performance.
• The transaction has no immediate impact on employees, customers, suppliers, or creditors.

Key Dates