Form 4: Veris Residential EVP Jeffrey Scott Turkanis Reports Stock Unit Grants

Jeffrey Scott Turkanis, EVP & Chief Investment Officer of Veris Residential, Inc., reports the acquisition of restricted stock units through grants on March 7, 2025.

Summary

• On March 7, 2025, Jeffrey Scott Turkanis, EVP & Chief Investment Officer of Veris Residential, Inc., was granted time vesting restricted stock units (TVRSUs), performance vesting restricted stock units (PVRSUs), and outperformance vesting restricted stock units (OPVRSUs).
• The TVRSUs represent a contingent right to receive one share of common stock and vest in three equal annual installments beginning March 7, 2026.
• The PVRSUs also represent a contingent right to receive one share of common stock, with 50% vesting based on absolute total stockholder return (TSR) and the other 50% based on the company's TSR relative to a select group of twelve peer REITs over a three-year period; vesting can range from 0% to 160% of the target performance level.
• The OPVRSUs may vest on March 6, 2028, from 0% to 100% based on the attainment of certain levels of adjusted funds from operations per share for the company's fiscal year ending December 31, 2027.
• Following the reported transactions, Turkanis beneficially owns 110,914 shares of restricted stock units.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a routine disclosure of stock grants, which is neither particularly positive nor negative on its own. The value depends on future performance.

Positives

• The grants of restricted stock units align the executive's interests with those of the shareholders, incentivizing performance and long-term value creation.
• The vesting schedules for the different types of RSUs (time-based, performance-based, and outperformance-based) provide a balanced approach to incentivizing different aspects of company performance.

Risks

• The actual value of the restricted stock units is contingent upon the future performance of Veris Residential, Inc.'s stock price and financial results.
• The performance-based vesting criteria (TSR and adjusted funds from operations) may not be achieved, resulting in a lower payout than the target amount.

Future Outlook

The vesting of the restricted stock units is contingent upon future company performance, including TSR and adjusted funds from operations per share.

Industry Context

The granting of restricted stock units is a common practice in the real estate investment trust (REIT) industry to align executive compensation with shareholder value. The specific vesting criteria (TSR relative to peers and adjusted funds from operations) are designed to incentivize both market performance and operational efficiency.

Comparison to Industry Standards

• Comparing Veris Residential's executive compensation structure to peers like AvalonBay Communities, Equity Residential, or Simon Property Group would provide a benchmark for assessing the competitiveness and appropriateness of the RSU grants.
• The use of TSR as a performance metric is common among REITs, as it directly reflects the return to shareholders.
• The specific peer group of twelve REITs used for relative TSR performance is a key factor in evaluating the difficulty and relevance of the performance hurdle.

Stakeholder Impact

• Shareholders: The grants align executive interests with shareholder value creation.
• Employees: The grants may have an indirect impact on employee morale and motivation, as they incentivize executive performance.

Key Dates