Company: IIPR
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001104659-25-041241
Chunk: 41

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 41
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 component of the annual cash incentive plan, or approximately 19% of the total target cash incentive after application of the 12.5% weighting. 5) Individual/Strategic Goals (Weighted 50%) While 50% of the annual incentive opportunity was tied to the formulaic financial and operational objectives outlined above, the remainder was tied to the committee’s more subjective assessment of each

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TABLE OF CONTENTS executive’s individual performance. The compensation committee used the following process to assess individual performance, and applied judgment in assessing individual performance at the end of the performance year: • At the beginning of 2024, our compensation committee worked with our Chief Executive Officer (“CEO”) to identify general categories that would be used to guide a subjective assessment of individual performance. • After the end of the year, the CEO evaluated each named executive officer’s performance, other than his own, and recommended to the compensation committee the percentages that should be earned under the individual performance component. • The compensation committee engaged in a discussion with the CEO regarding his recommendations and his assessments and made the final determination regarding this metric. • The compensation committee engaged in a review of the CEO’s performance as it relates to our performance, as well as the state of our industry and market competitive practices, in determining the percentage that the CEO earned under his individual performance component. The compensation committee assessed the qualitative performance for each of Mr. Gold, Mr. Smithers, and Mr. Smith, which accounted for 50% of their overall target cash incentive opportunity. While each executive’s individual performance was strong, the compensation committee ultimately determined that the qualitative portion of the annual cash incentive was achieved below the target level. The compensation committee assessed the qualitative component based on each executive’s ability to appropriately manage, among other things, 1) tenant defaults and the releasing of properties by attracting new tenants and controlling operating costs at the properties we took possession of and 2) further strengthening our liquidity position and strong balance sheet by establishing new relationships with four banks expanding participation in our credit facilities. The compensation committee subjectively assessed their qualitative performance below target, at approximately 30% to reflect the impact of reduced shareholder returns caused by a significant tenant default in December 2024. Based on the performance levels achieved as described above and the respective weightings of each component, the aggregate payout under our annual cash incentive plan was 95% of target. The amounts of the annual cash incentives earned by our named executive officers for the 2024 fiscal year on this basis are reflected in the Summary Compensation Table