Hersha Hospitality Trust — Shareholder Meeting (May 2018)
12 slides from Hersha Hospitality Trust's shareholder meeting presentation, May 23, 2018
Slide 1: Supplemental Information for 2018 Annual Meeting of Shareholders
Supplemental Information for 2018 Annual Meeting of Shareholders
Slide 2: Introduction: Dear Fellow Hersha Shareholder
Introduction Dear Fellow Hersha Shareholder: The twofold purpose of this presentation is to (1) provide additional context on how our recent strategic repositioning has been factored into the design of our compensation system and (2) reinforce our compensation framework, which strongly aligns with i
Slide 3: Key Attributes of our Compensation Program
Key Attributes of our Compensation Program Strong Shareholder Alignment: 83% of our named executive officer (NEO) pay is in the form of equity – the highest amongst our peers(1) Rigorous Performance: We must outperform our peers to earn target, for both of our relative measurements, which includes R
Slide 4: Key Attributes of our Compensation Program
Key Attributes of our Compensation Program CEO Pay Approximates the Median: Based on a comparison of our CEO’s pay to that of our own peers, our CEO’s pay falls slightly below the market median. Other analyses performed by two reputable proxy advisory firms, using different peers, had similar conclu
Slide 5: Company Overview & Transformation
Company Overview & Transformation HT owns 49 high quality, rooms-oriented, transient hotels in Boston, New York, Philadelphia, Washington, DC, Miami, Seattle, and California From 2016 to 2017, HT commenced a strategic transformation of its portfolio that caused significant disruptions to cash flow S
Slide 6: Outperformance in Disrupted Environment
Outperformance in Disrupted Environment 2017 Outperformance RevPAR Growth: For the full year 2017, HT’s RevPAR grew 230 basis points, 170 basis points above the peer average. This outperformance came despite the impact of Hurricane Irma on our South Florida portfolio EBITDA Outperformance: HT’s EBIT
Slide 7: Balanced Approach to Pay
Balanced Approach to Pay We use multiple compensation components that are intended to motivate and reward for various outcomes 100% of our incentives are based on performance We primarily utilize financial and operational metrics for assessing short-term performance and total shareholder return metr
Slide 8: Strong Historical Stockholder Approval
Strong Historical Stockholder Approval Historically we have had strong shareholder support of our executive compensation plan on an advisory basis 2014 Say on Pay Vote: 94.3% FOR 2015 Say on Pay Vote: 95.1% FOR 2016 Say on Pay Vote: 99.4% FOR 2017 Say on Pay Vote: 97.9% FOR Our 2016 compensation pro
Slide 9: Pay-for-Performance
Pay-for-Performance Pay-for-Performance = Alignment with Investors 100% of Incentives Are Performance-Based 100% of Incentives Funded in Equity At the beginning of 2017, all NEOs elected to receive all of their cash bonus in the form of equity that vests over a period of two years; as a result, over
Slide 10: Alignment with Investors
Alignment with Investors On average, 83% of our NEOs’ 2017 compensation was paid in equity, aligning our executive pay with investors 100% of our NEOs elected to take 100% of their cash bonuses in equity, subject to additional two-year vesting Annual CIP = Company’s Annual Cash Incentive Plan
Slide 11: Alignment with Investors
Alignment with Investors Despite significant disruption from Hurricane Irma and a transformative repositioning, strong operational performance resulted in short-term bonuses paid above target Largely due to TSR performance that fell short of rigorous hurdles, our multi-year equity plan resulted in a
Slide 12: The Board of Trustees Recommends You Vote
The Board of Trustees Recommends You Vote: FOR the election of all Class I Trustee nominees FOR the advisory vote to approve the compensation of the Company’s Named Executive Officers FOR ratification of the appointment of KPMG LLP as the Company’s independent auditor for the year ending December 31
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