Company: PEB
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0001474098-25-000062
Chunk: 47

Company: Pebblebrook Hotel Trust
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 47
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 |     | Formula-driven total as % of target |                                     |     |                 |     |                       |      |   |     |                     | 155.0 | %  |
| Discretionary                             |     |                                     |                                     |     |                 |     |                       |      |   |     |                     |  (5.0 | %) |
|                                           |     | Total payout as % of target         |                                     |     |                 |     |                       |      |   |     |                     | 150.0 | %  |

Although the maximum level of performance was achieved for five of the seven Annual Objectives, the executive officers jointly recommended that the Compensation Committee reduce the payout percentage from the formula-driven 155% to a slightly lower amount. The executive officers made this recommendation due to the Company’s total shareholder return for 2024. Taking into account both this recommendation and the actual results of the Annual Objectives, the Compensation Committee determined, in its sole discretion, that it would reduce the payout percentage to 150%. As a result, Mr. Bortz was paid an actual cash incentive bonus of $2,017,500 and each of Messrs. Martz and Fisher was paid an actual cash incentive bonus of $855,000.

Long-Term Equity Incentive Awards – 60% as At-Risk / Performance-Based Compensation and 40% as Time-Based Vesting (57% - 62% of Target Total Compensation)

The largest portion of compensation for our NEOs comes from long-term equity incentive awards. For 2024, the aggregate target dollar value of both forms of long-term equity incentive award as a percentage of target total compensation was 62% for Mr. Bortz and 57% for Messrs. Martz and Fisher. For each NEO, the target dollar value was increased from his 2023 amount by 3.5%.

In February 2024, the Compensation Committee and the Board decided that 60% of the target long-term equity amount for each executive officer should be awarded in the form of equity that will vest, if at all, based on specified performance metrics (performance-based vesting equity) and 40% should be awarded in the form of equity that will vest based on time (time-based vesting equity). The numbers of performance units and Common Shares to be awarded were determined based on the average of the closing prices per Common Share for the ten business days preceding the date of the setting of the executive officers’ target long-term equity