Cha-Ching! American Realty $94M CEO Pay Plan Raises Eyebrows

by Christopher Freeburn | May 30, 2014 11:03 am

The success of American Realty Capital Properties (ARCP[1]) may earn its Chairman and CEO Nicholas Schorsch a very generous payout[2].

money[3]American Realty has an “outperformance” executive incentive compensation pool that has surged to $222.1 million. An analysis by FLP Associates says that, under the American Realty plan, Schorsch could receive as much as $94.4 million in compensation over the coming five years. The hefty payouts — which would extend to other American Realty executives — are based on specified performance targets that ARCP must achieve, the Wall Street Journal notes.

Schorsch says that the compensation is tied to shareholder gains and that American Realty’s growth is the result of constant hard work by his team. “I make a lot of money,” he said. “But I earn it.”

According to a senior managing director at FPL, the American Realty executive incentive compensation pool is the “highest pool we’ve ever observed in the REIT space.” He added that the level of executive compensation would “raise some eyebrows.”

Indeed, the American Realty “outperformance” compensation plan has draw criticism from Institutional Shareholders Services Inc. and Glass, Lewis & Co.

American Realty shareholders were set to vote on the executive compensation plan on Thursday.

ARCP shares sank slightly in Friday morning trading.

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