Revenue and growth at the four publicly traded self-storage REITs may have soared in 2014, but a majority of the REITs’ executives saw their total compensation decline.
Most notably, all six executives at Sovran Self Storage (Uncle Bob’s) made 26 percent to 30 percent less than they did in 2013. However, the disparity is not a reflection on their performance, but instead is tied to a special award of shares in 2013 on top what they normally would have gotten. Sovran executives did not receive incentive stock awards in 2012 amid a compensation review.
One industry analyst told The Storage Beat that it’s normal for executive compensation to fluctuate from year to year, depending on the timing of various performance-based awards.
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Based on The SpareFoot Storage Beat’s examination of filings with the U.S. Securities and Exchange Commission, John Reyes, chief financial officer at Public Storage, remained the highest paid executive among the public self-storage REITs, raking in $9.24 million last year. That was down 1 percent from 2013. Public Storage, Chairman, President and CEO Ron Havner came in right below Reyes, with just over $9 million in total compensation.
The SpareFoot Storage Beat reviewed compensation for executives at Public Storage, Extra Space Storage, CubeSmart and Sovran. National Storage Affiliates Trust became the fifth publicly traded self-storage REIT in the U.S. earlier this year, so its executives’ compensation for 2014 isn’t available.
Candace Krol, chief human resources officer at Public Storage, saw the biggest rise in compensation last year among top executives at the four self-storage REITs included in our review. Greater stock awards and other compensation in 2014 more than doubled her compensation compared with 2013. Krol was promoted to her executive position in February 2015; she’d been senior vice president of human resources since 2005.
Chris Marr, president and CEO of CubeSmart, saw a 53 percent bump in compensation during his first year at the helm of the company.
To access a copy of our interactive infographic, visit news.sparefoot.com/iframes/REITS-exec-salary-table.html.