subject to mutually agreed upon future employment and performance conditions and are expected to be reflective of the standard vesting and market practice for awards granted to the most senior executives of similarly situated companies in connection with a new equity listing.I find it hard to believe the stock grants won't get realized. Apparently, according the the 8-K, awards of this nature are "customary." Really? I want some of this custom. Return of investor capital plus the preferred return better be one "performance condition." I'll add this compensation to the overall level of fees CCPT III investors are paying to buy CCPT III's sponsor.
Monday, March 11, 2013
Internalization Fee And Then Some
On Friday Cole Credit Property Trust III (CCPT III) released an 8-K that included the merger agreement between it and Cole Holdings, and the compensation arrangements between the new company and Christopher Cole and Marc Nemer. If a $150 million internalization fee was not enough, as part of their compensation agreements with the new company, Mr. Cole and Mr. Nemer will receive shares in the new entity of $7.5 million and $6.0 million, respectively, payable when the merger closes. These long-term incentive and retention awards are: