Company: PEB
Filing Date: 2025-04-07
Form Type: DEF 14A
Source: 0001474098-25-000062
Chunk: 74

Company: Pebblebrook Hotel Trust
Filing Date: 2025-04-07
Form: DEF 14A
Chunk 74
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 large part a result of the high percentage of our NEOs’ compensation that is paid in the form of time-vesting Common Shares and performance-based equity that vests based on the Company’s TSR and the Company’s TSR relative to the TSRs of the TSR Peer Group. When the Company’s TSR is positive, and especially when it is strong relative to the TSRs of the TSR Peer Group, more of our NEOs’ performance-based equity awards vest and all equity that vests has greater value. Conversely, when the Company’s TSR is negative, and especially when it is also weak relative to the TSRs of the TSR Peer Group, less of our NEOs’ performance-based equity awards vest and all equity that vests has less value.

In contrast, as the following two charts show, there has been almost no correlation between our NEOs’ CAPs and either Net Income or Hotel EBITDA per Key. In our compensation program for each of the years presented, we did not use Net Income to determine any portion of our NEOs’ compensation, and we used Hotel EBITDA per Key only for the cash incentive bonus, to which it contributed a weighted-average 1.7% of our NEOs’ target total compensation for 2021, 2022, 2023 and 2024.

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Other Important Financial Performance Measures for Executive Compensation

The following table sets forth the most important financial measures used to link executive compensation and company performance for our executive compensation program for 2024, which is our most recently completed fiscal year.

| Most Important Financial Performance Measures      |
| Company TSR                                        |
| Company TSR relative to TSRs of the TSR Peer Group |
| Hotel EBITDA per Key growth vs. Peers’             |
| Gross Proceeds from Dispositions                   |
| Portfolio RevPAR Penetration Index Improvement     |
| Adjusted FFO per Share                             |

Please see the CD&A on pages 27through 39 of this Proxy Statement for more information on these measures and how they are taken into account in determining compensation for our NEOs.

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| SECURITY OWNERSHIP INFORMATION |

| SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS |

The following table sets forth the beneficial ownership of Common Shares for each shareholder of the Company that is known to the Company to be the beneficial owner of more than 5% of Common Shares based on 118,685,166 Common Shares outstanding as of March