Company: IIPR
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001104659-25-041241
Chunk: 32

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 32
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 our named executive officers in 2024: — 79% of our chief executive officer’s and, on average, 80% of our other named executive officers’ total target direct compensation was variable (or “at-risk”). “At-risk” pay is determined based on the achievement of corporate and individual performance objectives under the annual cash incentive plan or stock price performance, comprising time-vesting equity awards vesting over three-year periods and annual cash incentives. — 49% of our chief executive officer’s and, on average, 48% of our other named executive officers’ total target direct compensation (restricted stock/RSUs), on average, was tied directly to stock price performance .

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The amounts shown above reflect total direct compensation for 2024, calculated as the sum of 2024 annual base salaries, target annual cash incentives for the 2024 performance year, and the fair-values of the long-term equity incentive awards granted in January 2024. The actual annual cash incentive earned for 2024

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TABLE OF CONTENTS depended on the assessment of executive performance by the compensation committee and the actual value realized from the long-term equity incentive awards will depend directly on the performance of the Company’s share price over the service period during which the long-term equity awards vest. Previous Years’ Say-on-Pay Votes We provide our stockholders with an annual advisory “say-on-pay” vote on the compensation of named executive officers. We conducted our first advisory say-on-pay vote in 2020. In the four years from 2020 to 2023, our stockholders expressed substantial support for the compensation of our named executive officers, where we received (on average) more than 93% of votes cast “FOR” our executive compensation program. In 2024, only 73% of the votes cast were in support of our 2023 executive compensation program. We believe our compensation program, as described below, reflects a strong alignment with the Company’s performance. Stockholders noted concerns about the prior annual cash incentive programs being 100% discretionary. Therefore, in response to stockholder feedback and in an effort to improve pay-for-performance alignment, we established a new annual cash incentive plan for 2024 that is tied 50% to pre-established formulaic financial and strategic objectives and the remaining 50% to each executive’s individual performance. We also continue to explore ways to make our long-term incentive program more performance-based, each as described under the heading