Form 4: STAG Industrial EVP Steven T. Kimball Awarded Long-Term Incentive Plan Units

Steven T. Kimball, EVP of STAG Industrial, Inc., was granted 11,813 long-term incentive plan units (LTIP Units) on January 7, 2025, which vest quarterly over four years.

Summary

• On January 7, 2025, Steven T. Kimball, the EVP of STAG Industrial, Inc., received 11,813 long-term incentive plan units (LTIP Units).
• These LTIP Units were granted under the company's 2011 Equity Incentive Plan, as amended.
• The LTIP Units vest quarterly over a four-year period.
• These units can achieve full parity with common units of limited partnership of the Operating Partnership (OP Units).
• If parity is reached, the LTIP Units can be converted into OP Units and redeemed for cash or shares of STAG Industrial's common stock on a one-for-one basis.
• The reporting person directly owns 40,026 shares of Common Stock.

Sentiment

Score: 7

Explanation: The document indicates a standard executive compensation practice, suggesting stability and alignment of interests. The sentiment is neutral to positive.

Positives

• The grant of LTIP Units aligns the executive's interests with the long-term performance of the company.
• The vesting schedule encourages continued service and contribution over a four-year period.
• The potential conversion to OP Units and redemption for cash or stock provides a tangible incentive for achieving performance goals.

Future Outlook

The LTIP Units vest over a four-year period, suggesting a long-term commitment from the executive.

Industry Context

Grants of LTIP units are a common practice in the real estate industry to incentivize executives and align their interests with those of shareholders.

Comparison to Industry Standards

• Equity compensation packages, including LTIP units, are a standard practice among publicly traded REITs like STAG Industrial to attract and retain top talent.
• Companies such as Prologis, Duke Realty (now part of Prologis), and Digital Realty Trust also utilize similar long-term incentive plans for their executives.
• The vesting schedule and conversion terms of the LTIP units are generally in line with industry norms, aiming to reward sustained performance and value creation.

Stakeholder Impact

• Shareholders may view the LTIP Unit grant positively as it aligns executive compensation with long-term company performance.
• Employees may see this as a positive sign of investment in leadership and long-term growth.

Key Dates