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Colonial Properties Trust
2009 Annual Incentive Plan
On April 21, 2009, the Compensation
Committee of the Company’s Board of Trustees adopted an
annual incentive plan for 2009 and set the specific performance
goals and business criteria for the award of 2009 bonus payments to
the Named Executive Officers. Such bonuses are expected to be paid
after the first quarter of 2010. The intent of the performance
goals and business criteria of this plan is to better align the
Company’s executive management team to the interests of the
Company’s investors. The performance goals and business
criteria for 2009 are based on the following:
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The
“total return” for the Company for the year (the
“absolute performance measure”);
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One-year “total return”
for the Company as compared to an index of comparable REITs (a
“relative performance measure”); and
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Two-year “total return”
for the Company as compared to an index of comparable REITs (a
“relative performance measure”).
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For purposes of the 2009 annual incentive plan,
“total return” is equal to the share price of the
Company (or the companies in the index of comparable REITs, as the
case may be) plus any dividends reinvested in the Company (or the
companies in the index of comparable REITs) calculated based on
reinvestment on the dividend pay date.
The Company’s absolute performance measure
must be positive for the plan year for any payout to occur;
however, (a) if the absolute performance measure is negative
but the Company’s total return is at least at the
“median” level of performance when compared to the
one-year “total return” relative performance
measure, the Compensation Committee has discretion to pay up to 20%
of the payout calculated based on the relative performance
measures’ results, and (b) if the absolute performance
measure is positive and the Company’s total return is at
least at the “median” level of performance when
compared to the one-year “total return” relative
performance measure, the Compensation Committee has the discretion
to increase the award amount up to 20% of the payout calculated
based on the relative performance measures’
results.
The first 75% of each annual incentive award is
automatically paid in time-vested restricted common
shares
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