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Retention Awards for Financial Industry CEOs
November 4, 2014
How Are Companies Designing Retention Awards to Retain Top Executives?
With the improving economy and increased competition for talent, our clients’ interest in the prevalence of
retention awards and best practices
for top management has increased accordingly. One of our recent custom research projects explores retention awards for a sample
of CEOs in the REIT and financial services industries. This highlights how companies are structuring retention awards to retain
their top leaders, as well as the trends in award types, valuation, and vesting schedules.
Cubesmart Retention Awards
CubeSmart, one of the 20 companies included in this analysis, awarded a retention grant in May 2012 to its then CEO, Dean
Jernigan. The intent of the award was to promote retention by solidifying an effective leadership transition and aligning
the interests of the CEO with those of long-term shareholders. The grant consisted of 274,668 performance units at a grant
date fair value of $3,040,575. It was subject to both continued employment through his retirement and the achievement of
stock price performance during the measurement period ending on June 30, 2014.