Form 4: Veris Residential CEO Nia Mahbod Acquires Phantom Stock Units as Quarterly Dividend

Veris Residential CEO Nia Mahbod acquired 13.274 phantom stock units as a quarterly dividend under the company's Deferred Compensation Plan for Directors.

Summary

• On April 3, 2024, Nia Mahbod, CEO of Veris Residential, Inc., acquired 13.274 phantom stock units.
• These units were awarded as a quarterly dividend credited on cumulative phantom stock units previously granted to Mahbod for service as a director.
• The phantom stock units were accrued under the Veris Residential, Inc. Deferred Compensation Plan for Directors.
• These units convert to common stock on a one-for-one basis and will be settled in Veris Residential, Inc. common stock upon termination of service on the Board or a change in control of the company.
• Following the transaction, Mahbod directly owns 3,679.465 shares of Veris Residential common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The acquisition of phantom stock units as part of a compensation plan is a standard practice and indicates alignment of management's interests with shareholders.

Positives

• The acquisition of phantom stock units aligns the CEO's interests with those of the shareholders.
• The Deferred Compensation Plan for Directors incentivizes long-term commitment and performance.

Future Outlook

The phantom stock units will be settled in Veris Residential, Inc. common stock upon the termination of the reporting person's service on the Board of Directors of Veris Residential, Inc. or upon a change in control of Veris Residential, Inc.

Industry Context

The use of phantom stock units is a common practice in executive compensation to align management's interests with shareholder value, particularly in real estate investment trusts (REITs) like Veris Residential.

Comparison to Industry Standards

• Deferred compensation plans and phantom stock awards are frequently used by REITs to attract and retain key executives.
• Companies like Equity Residential and AvalonBay Communities also utilize similar compensation structures to align executive incentives with long-term shareholder value creation.
• The specific terms of the Veris Residential plan, such as the vesting schedule and conversion ratio, would need to be compared to those of its peers to assess its competitiveness.

Stakeholder Impact

• The acquisition of phantom stock units aligns the CEO's interests with those of the shareholders, potentially leading to better long-term performance.
• The Deferred Compensation Plan for Directors incentivizes long-term commitment and performance, which could benefit employees and other stakeholders.

Key Dates