Company: HPP
Filing Date: 2025-04-23
Form Type: DEF 14A
Source: 0001104659-25-038079
Chunk: 69

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-04-23
Form: DEF 14A
Chunk 69
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 and reward increases in long-term stockholder value and to align the interests of our NEOs with the interests of our stockholders. 2024 Equity Award Redesign For the 2024 equity awards, the Compensation Committee, in collaboration with FPC, conducted a holistic review that included the following key findings: • External Business Environment . Our management team needed to be focused on continuing to navigate an unprecedented confluence of an unfavorable macroeconomic environment for office owners, the lingering impacts of remote work, and the historic and prolonged studio-related strikes. Focusing on long-term growth vs. short-term headwinds was critically important • Stock Price Performance . The core of HPP’s compensation philosophy has always emphasized alignment with our stockholders over the long term. As a result of the external business environment, our stock price (consistent with many of our office peers) had decreased significantly • Changes to Compensation During Transitional Periods . In addition to the holistic annual compensation market review conducted, the Compensation Committee also reviewed compensation programs used to ensure alignment and effectiveness during periods of significant disruption and noted two key themes: (i) absolute stock price recovery becomes the predominant measure for LTI delivered to key senior leaders most responsible for driving long-term growth, and (ii) retention and stability becomes more important for other employees tasked with day-to-day execution • Governance Factors . Our Compensation Committee also considered preferences of our stockholders and sought to understand what programs had provided better alignment and more favorable say-on-pay outcomes (such as longer vesting periods and goal rigor) Following this review, the Compensation Committee approved a new 2024 long-term equity award program as follows: • Shareholder Alignment Program for Top Senior Leaders . To ensure the engagement and retention of the Company’s top senior leaders and to motivate them to take actions that restore shareholder value, in January 2024, the Committee granted Messrs. Coleman, Lammas and Diramerian “upfront” equity awards that cover two years of grants (i.e., grants for 2024 and 2025). A similar structure has been used by other office REITS, and the Committee determined that increasing rigor and enhancing governance was appropriate as follows: • Awards were approved at the same time as other year-end decisions and in accordance with our usual grant cycle to avoid any perception of timing the market for management’s benefit • With respect to the performance awards, stock price achievement will not be assessed before 2026 and requires a 20 consecutive trading-day average be maintained, and further requires an ~100%

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