Company: CIO
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001193125-25-052437
Chunk: 44

Company: City Office REIT, Inc.
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 44
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 as measured by the efficient use of capital and changes in stockholder value, and that a large portion of their total compensation opportunity is earned over a multi-year period and could be forfeitable in the event of termination of their service to us or our affiliates. This intent is reinforced through our Stock Ownership Policy and our Clawback Policy.

Our overall approach for setting the level of long-term equity incentive compensation is to create and sustain long-term stockholder value while rewarding employee performance. Under the guidelines established by our Compensation Committee, the base salaries our NEO’s receive are intended to be below-market, with the ability to achieve total remuneration at the higher end of the market range, through bonuses and long-term incentive compensation based on performance. When considering market remuneration, our Compensation Committee evaluates remuneration levels of our publicly traded REIT peer set and considers our relative size and performance versus the comparison peer groups. As we intentionally set base salaries generally below the average of our peer groups, the long-term equity incentive compensation component is intended to comprise a material portion of total remuneration if strong performance is achieved by the NEOs.

For the fiscal year ending December 31, 2023, the Compensation Committee elected to alter the composition of long-term equity incentive compensation to NEOs to be comprised of 40% time-based restricted

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stock units and 60% performance restricted stock units, which the Company believes enhances the alignment of NEO compensation with the interests of our stockholders. This ratio was continued for the fiscal year ending December 31, 2024. Grants of Time Vesting Restricted Stock Units to our NEOs in 2024 During the fiscal year ended December 31, 2024, pursuant to the applicable restricted stock unit award agreements and our EIP, we issued 73,289 restricted stock units to Mr. Farrar, 73,289 restricted stock units to Mr. Tylee and 30,537 restricted stock units to Mr. Maretic. These restricted stock unit award agreements were approved by the Company’s Board of Directors, as recommended by the Compensation Committee, pursuant to the EIP. The awards were made pursuant to restricted stock unit award agreements between the Company and each of the award recipients, subject to vesting over a three-year period. These restricted stock units vest in three equal installments on each of the first three anniversaries of the grant date and shall vest in full upon the termination of employment without Cause (as defined in the form of award agreement