Company: CIO
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001193125-25-052437
Chunk: 37

Company: City Office REIT, Inc.
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 37
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 practices of our peers, we focus on both publicly traded office REITs and publicly traded REITs of a similar size to us. In determining pay practices, we believe it is important to evaluate REITs of a similar size, as we are one of the smaller REITs in the publicly traded office REIT peer group. As part of our annual analysis, we utilize data provided by our association with the National Association of Real Estate Investment Trusts (“NAREIT”). Each year, NAREIT sponsors a detailed compensation survey conducted by independent consultant Ferguson Partners. In 2024, 117 companies participated in the survey, representing approximately 72% of the equity market capitalization of U.S listed equity REITs. The data is segmented into an analysis of base salary, total cash compensation and total remuneration. Data is further segmented based on the 25 thpercentile, median, average and 75 thpercentile by role, market segment and other factors. The Compensation Committee evaluates the range of data within both the publicly traded office REIT sector, as well as REITs that have a total enterprise value of less than $1.5 billion. When analyzing this data cohort, the Compensation Committee considers the fact that the Company is one of the smaller entities within the publicly traded office REIT sector. 2024 Performance Objectives On November 8, 2023, the Company’s Board of Directors approved an updated strategic plan and an operating budget for 2024. The Board of Directors believes that the successful execution of the strategic plan and operating budget will position the Company for strong stockholder returns over the long term. The targets from the strategic plan and operating budget were used to develop specific operating and financial performance targets in order to measure progress. Subsequently, the Compensation Committee approved the creation of the Performance Objectives and relative weightings, which it believed would appropriately measure progress towards the achievement of both the strategic plan and the operating budget, and the concepts are summarized below:

| 1. | Operational Targets. The Compensation Committee believes that setting specific targets related to operations derived from the annual business plan and strategic plan is an appropriate measure of the Company’s performance. Such targets in 2024 included achieving overall leasing targets and targets for specific tenants and properties while maximizing the lengths of renewal lease terms, maintaining high rent collection levels throughout 2024, achieving portfolio occupancy targets and Same Store Cash NOI targets, executing early lease extensions with key tenants, completing renovations and ready-to-lease spec suite projects on time and on