Digital Realty Mandates New Guidelines for Stock Ownership
Zacks
By Zacks Equity Research
August 18, 2015 3:20 PM
In a notable development, Digital Realty Trust Inc. DLR, the San Francisco, CA-based real estate investment trust (“REIT”), announced implementation of minimum stock ownership requirements for its senior executive officers and directors. These moves are aimed at raising the ownership interest of top executives and directors in the company, so as to align their interests with those of the stockholders.
Per the new guidelines, the ownership amount of the Chief Executive Officer (“CEO”) should be equal to six times his/her base salary. For those reporting directly to the CEO, the stock ownership should be equal to three times their base salary; while for certain other executive officers, this will be equal to one and a half times their base salary. Again, directors are required to own shares equal to two and a half times the total number of shares and units granted to them during the prior fiscal year, according to the company’s incentive award plans.
Digital Realty owns, acquires, repositions and manages technology-related real estate. The company's properties contain applications and operations critical to the day-to-day operations of technology industry tenants. The company’s recent moves are in sync with its aim to promote shareholder-friendly corporate governance.
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