Equity Residential (NYSE:EQR), a real estate investment trust, has established a new executive severance plan and expanded its commercial paper note program, as disclosed in its recent SEC 8-K filing.
On December 12, 2024, the Board of Trustees approved the Equity Residential Executive Severance Plan, which outlines severance payments and benefits for eligible management employees, including the CEO and executive vice presidents.
The plan, recommended by the Compensation Committee, is designed to provide a structured severance framework for non-change in control situations, aiming to aid in executive retention and recruitment, and offering protections for the company.
Eligible executives, upon termination without cause or for good reason, may receive a lump-sum pro-rata payment based on target bonuses, a cash payment combining annual salary and target bonus multiplied by a set multiplier, and COBRA premium sharing for health benefits. The plan also stipulates immediate vesting of unvested equity awards and extended exercisability of vested options.
In another development reported on December 18, 2024, the company's operating partnership, ERP Operating Limited Partnership, increased its commercial paper program limit from $1 billion to $1.5 billion. The increase allows for the issuance of additional unsecured notes, which are on par with other senior indebtedness and are not registered under the Securities Act of 1933. The notes will be sold in the U.S. commercial paper market and are exempt from registration under Section 4(a)(2) of the Securities Act.
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