Search
 

AIMCO Sweetens Management Investment Opportunities

DENVER-AIMCO is banking on its success to deliver a minimum 30% shareholders return for three years. The REIT is raising the $2-million cap on a senior investment plan. A cut-off has not been set, but it could go as high as $4 million.

By John Rebchook | Updated on November 30, 2000

DENVER-Top executives of Denver-based Apartment Investment and Management will be able to double the amount they can contribute to an investment program, if the board votes to modify and continue what is known as its High Performance Unit program.

It’s sort of like a REIT’s version of an options plan, Pat Foye, spokesman for AIMCO tells GlobeSt.com. “But it’s not an option program, because an option is a freebie,” Foye explains. “If you have options, and your stock goes up, you’re a winner. Under this program, the executives must write a check. If the stock does not perform he loses all of the money. But if he exceeds stated thresholds, he gets more units. The units are sort of a proxy for common stock.”

Under the current plan, senior management can contribute up to $2 million. The new plan may open doors for contributions up to $4 million, although the final amount remains undetermined at this point.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.