Form 4: STAG Industrial Executive Receives Long-Term Incentive Plan Units

Jeffrey M. Sullivan, EVP, GC and Secretary of STAG Industrial, Inc., reports the acquisition of LTIP units as part of the company's equity incentive plan.

Summary

• Jeffrey M. Sullivan, an executive at STAG Industrial, Inc., received LTIP units on January 7, 2025, as part of the company's 2011 Equity Incentive Plan.
• A total of 12,508 LTIP units were granted, vesting quarterly over four years.
• Additionally, 12,058 LTIP units were earned based on a performance unit award from January 2022, with 106% of the target number of performance units achieved over a three-year period.
• These earned LTIP units are fully vested as of the issuance date.
• The reporting person directly owns 272,000 LTIP Units and 284,058 LTIP Units.

Sentiment

Score: 7

Explanation: The document indicates standard executive compensation practices, aligning management interests with shareholders. The achievement of performance targets is a positive sign.

Positives

• The granting and earning of LTIP units align executive compensation with company performance and long-term value creation.
• The vesting schedule of the newly granted LTIP units encourages continued service and commitment from the executive.
• Achieving 106% of the target performance units suggests strong performance by the executive.

Future Outlook

The LTIP units vest over time and can be converted into OP Units, which can then be redeemed for cash or shares of STAG Industrial's common stock, aligning the executive's interests with those of the shareholders.

Industry Context

Granting LTIP units is a common practice in the real estate industry to incentivize executives and align their interests with the long-term performance of the company.

Comparison to Industry Standards

• Many REITs use LTIP units as part of their executive compensation packages.
• The vesting schedule and performance metrics associated with these units are typically designed to align with industry best practices and shareholder interests.
• Companies like Prologis and Duke Realty (prior to its acquisition) have similar equity incentive plans for their executives.

Stakeholder Impact

• The granting of LTIP units can positively impact shareholders by aligning executive compensation with company performance.
• Employees may be motivated by the knowledge that executives are incentivized to improve company performance.

Key Dates