Summit Hotel Properties, Inc.
For the period ended Dec 31, 2024. Filed Apr 2, 2025.
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What shareholders are asked to vote on at a company's meeting. It is where to find what directors and top executives are paid, and who owns the most shares.
Dec 31, 2024 · Filed Apr 2, 2025
Contents
Compensation Program
2024 Compensation Program
Our executive compensation program consists of base salary, annual cash incentive compensation opportunities and annual long-term equity incentive grants. Our program is designed to be straightforward, transparent and market-based and to comply with sound corporate governance practices.
The chart below contains the key components of our executive compensation program, the purpose of each component and the process for determining each component.
| Compensation Component | Description and Objectives | 2024 Program |
|---|---|---|
| Base Salary | Fixed cash compensation set at a level reflective of each executive’s performance, market conditions, and competitive rates. | The Compensation Committee considered competitive salary information for the Company’s peer group when establishing 2024 base salaries for named executive officers. Annual base salaries are detailed in “Base Salary” below. |
| Annual Cash Incentive Compensation | Performance-based cash incentive that rewards achievement of annual company-specific performance objectives. | The Compensation Committee established our 2024 annual cash incentive program to incorporate performance measures that strongly support our business strategies. 2024 annual cash incentives were tied to objectives in the following categories: Same Store Hotel EBITDA (weighted 50%); Balance Sheet Objective (weighted 10%); Transaction Objective (weighted 10%); Capital Expenditures Objective (weighted 10%) and Strategic Plan Objectives (weighted 20%). Total earned bonuses were paid at approximately 103% of target payout for each of the named executive officers as detailed in “Annual Cash Incentive Program” below. |
| Long-Term EquityIncentives | Equity incentives that align executive compensation with total stockholder return over multi-year performance and vesting periods that encourage the retention of key talent. | In 2024, 60% of each named executive officer’s long-term equity award was in the form of performance-based stock awards that may be earned from 0 to 200% of the target number of shares based on our relative total shareholder return (“TSR”) percentile rank versus a comparable set of lodging REITs over a three-year performance period. The remaining 40% of each executive’s long-term equity award was in the form of time-based stock awards, vesting 25%, 25% and 50% on the one-year, two-year and three-year anniversaries, respectively, of March 9, 2024. Based on our 3-year TSR beginning on March 8, 2022 and ending March 8, 2025, certain previously granted performance-based restricted stock awards granted to executives on March 8, 2022 were earned at 50.4% of target. See Footnote (4) under “Outstanding Equity Awards at Fiscal Year-End”. |
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