Company: ABR-PF
Filing Date: 2025-04-17
Form Type: DEF 14A
Source: 0001628280-25-018236
Chunk: 44

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-04-17
Form: DEF 14A
Chunk 44
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 Board of Directors, and on April 5, 2024, the Board approved, and the Company and Mr. Kaufman entered into, a Third Amended and Restated Annual Incentive Agreement (the “2024 Agreement”), which became effective as of January 1, 2024, with a term of five years, extending to December 31, 2028. The 2024 Agreement amended the Second Amended and Restated Annual Incentive Agreement between the Company and Mr. Kaufman (the “2021 Agreement”) and generally followed the structure of the 2021 Agreement. Under the terms of the 2024 Agreement, Mr. Kaufman has (1) an annual base salary of $1,200,000, (2) an additional annual cash payment of $1,171,280, and (3) annual performance-based cash bonus opportunities of $3,897,439 at target performance, $1,948,717 at threshold performance and $5,846,151 at maximum performance, with the opportunity to earn up to an additional $974,359 annually in the event of extraordinary performance with respect to corporate capital growth goals. The goals applicable to the annual performance-based cash bonus are our distributable earnings per share, corporate capital growth, balance sheet-management, efficiency and the relative risk of our portfolio. These goals are set by the Compensation Committee of our Board of Directors.

The 2024 Agreement also provides that the value of Mr. Kaufman’s annual cash payment, his annual performance-based cash bonus and both long term equity awards increase by 10% for each increase of 25% in our GAAP equity capitalization, measured annually (the “GAAP Equity Adjustment”). The values of the annual cash payment, the annual performance-based cash bonus and both long term equity awards in the 2024 Agreement are the result of a similar GAAP Equity Adjustment that was operative under the 2021 Agreement.

The 2024 Agreement also provides Mr. Kaufman with long term equity awards. Under the 2024 Agreement, Mr. Kaufman receives (1) an annual grant of three year time-based vesting stock with a value at grant of $2,200,000 and (2) an annual grant of performance-based vesting restricted stock units with a value at grant of $8,800,000, which vest, in whole or in part, based on our four year total shareholder return ("TSR") objectives. Under the terms of the 2021 Agreement that were