Company: IIPR
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001104659-25-041241
Chunk: 31

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 31
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 ​ | ​ | Calendar Year 2024                                                                                                                                                                                                                                                                                                                                                                         | ​ | ​ |
| ​ | ​ | Base Salary            | ​ | ​ | ​ | Fixed compensation necessary to attract and retain executive talent set based on individual’s role with the organization, experience, performance, and potential, including unique skill sets applicable to cannabis industry focus. | ​ | ​ | ​ | Based on the compensation committee’s assessment of the aforementioned factors, annual base salaries were increased by approximately 5% for continuing executives (Mr. Smith’s 2024 base salary as disclosed in the Summary Compensation Table appears more than 5% higher than 2023 because 2023 reflects only approximately nine months of employment from March through December 2023). | ​ | ​ |

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TABLE OF CONTENTS

| ​ | ​ | Compensation Component                  | ​ | ​ | ​ | Description and Objectives                                                                                                                                                                                                                                                                                                                                                             | ​ | ​ | ​ | Calendar Year 2024                                                                                                                                                                                                                                                                                                                                                                              | ​ | ​ |
| ​ | ​ | Annual Cash Incentive Opportunity       | ​ | ​ | ​ | Annual cash incentive awards that reward corporate and individual performance. We sought to enhance the pay-for-performance alignment of our incentive compensation programs in 2024 with a new annual cash incentive plan that tied 50% of the plan to pre-established formulaic financial and strategic objectives and the remaining 50% to each executive’s individual performance. | ​ | ​ | ​ | Based on the compensation committee’s assessment of performance versus the 2024 corporate goals established by the compensation committee at the beginning of 2024, as well as individual performance, the compensation committee awarded annual cash incentives as shown in the Summary Compensation Table for 2024 at 95% of target.                                                          | ​ | ​ |
| ​ | ​ | Long-Term Equity Incentive Compensation | ​ | ​ | ​ | Equity awards that align the interests of executives with those of stockholders and promote the retention of key talent through multi-year vesting.                                                                                                                                                                                                                                    | ​ | ​ | ​ | In 2024, as in 2023, the compensation committee granted restricted stock or RSUs that vest in three equal annual installments, subject to the executive’s continued employment on each vesting date. The Company continues to evaluate various long-term incentive plan designs. However, in light of the challenges in the cannabis industry, the Company did not change its plan during 2024. | ​ | ​ |

The charts below illustrate the mix between compensation elements provided to