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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Michigan
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38-2033632
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer Identification No.)
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200 East Long Lake Road,
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Suite 300,
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Bloomfield Hills,
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Michigan
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USA
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48304-2324
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(Address of principal executive offices)
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(Zip code)
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Registrant's telephone number, including area code:
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(248) 258-6800
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Trading
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Name of each exchange
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Title of each class
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Symbol
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on which registered
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Common Stock,
$0.01 Par Value |
TCO
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New York Stock Exchange
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6.5% Series J Cumulative
Redeemable Preferred Stock, No Par Value |
TCO PR J
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New York Stock Exchange
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6.25% Series K Cumulative
Redeemable Preferred Stock, No Par Value |
TCO PR K
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New York Stock Exchange
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ITEM
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PAGE
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PART III
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PART IV
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Name
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Age
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Title
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Term
Ending
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Mayree C. Clark
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63
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Director
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2020
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Michael J. Embler
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56
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Director
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2020
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Janice L. Fields
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64
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Director
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2020
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Michelle J. Goldberg
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51
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Director
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2020
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Nancy Killefer
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66
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Director
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2020
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Cia Buckley Marakovits
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55
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Director
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2020
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Robert S. Taubman
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66
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Chairman of the Board, President and Chief Executive Officer
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2020
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Ronald W. Tysoe
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67
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Director
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2020
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Myron E. Ullman, III
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73
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Lead Director
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2020
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Mayree C. Clark
Director since: 2018
Age: 63
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Qualifications, Attributes, Skills and Experience:
» Brings significant investor stewardship and extensive business leadership experience as CEO of an investment management firm and as an executive of a major public financial services company
» Possesses experience in real estate, investment banking and capital markets, asset management, strategic planning, governance, and risk management, as well as extensive global exposure through her prior professional positions and service on other boards and professional organizations
» Appointed by the Council of Institutional Investors to serve on the 2019 Corporate Governance Advisory Council
» Served on the board of directors of the Stanford Management Company, which is responsible for Stanford University's endowment (2007-2015) and Commonfund (1992-2004)
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Current Occupation(s):
» Founding partner of Eachwin Capital, an investment management organization, which she led from 2011 to late 2016 for the benefit of third party investors and now oversees her family's investments
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Prior Occupation(s):
» Independent director of Regulatory Data Corp. (RDC), owned by Vista Equity Partners, until 2020
» Partner and member of the executive committee of AEA Holdings, and a Senior Advisor to its real estate affiliate, Aetos Capital Asia from 2006 to 2010
» Held a variety of executive positions at Morgan Stanley over a span of 24 years from 1981 to 2005, serving as Head of Real Estate Capital Markets, Global Research Director, Director of Global Private Wealth Management, deputy to the Chairman, President and Chief Executive Officer, and non-executive Chairman of MSCI
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Other Public Company Board(s):
» Director of Ally Financial Inc. (since 2009) (including service on the Audit and Risk Committees) (past Chair of the Risk Committee)
» Member of the Supervisory Board of Deutsche Bank (since 2018) (including service as Chair of the Risk Committee and a member of the Strategy Committee and Nomination Committee)
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Name
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Age
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Title
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Robert S. Taubman
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66
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Chairman of the Board, President and Chief Executive Officer
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William S. Taubman
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61
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Chief Operating Officer
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Simon J. Leopold
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52
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Executive Vice President, Chief Financial Officer and Treasurer
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Paul A. Wright
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49
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President, Taubman Asia Management Limited
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2019 ($)
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Annual cash retainer:
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Board
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70,000
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Additional annual cash retainer for Lead Director
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25,000
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Additional annual cash retainer for Committees:
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Audit Committee chair
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20,000
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Audit Committee member
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12,000
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Compensation Committee chair
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15,000
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Compensation Committee member
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6,000
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Nominating and Corporate Governance Committee chair
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12,500
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Nominating and Corporate Governance Committee member
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4,500
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Annual equity retainer (fair market value)
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125,000
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Name
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Fees Earned or
Paid in Cash
($) (1)(4)
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Stock Awards
($) (2)(4)
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Total
($)
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Mayree C. Clark
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96,750
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124,875
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221,625
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Michael J. Embler
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87,625
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125,000
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212,625
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Janice Fields
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76,000
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125,000
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201,000
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Nancy Killefer
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82,000
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125,000
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207,000
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Michelle Goldberg(3)
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41,000
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62,500
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103,500
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Jonathan Litt(3)
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41,000
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62,500
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103,500
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Cia Buckley Marakovits
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80,500
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125,000
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205,500
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Ronald W. Tysoe
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108,000
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125,000
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233,000
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Myron E. Ullman, III
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112,000
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125,000
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237,000
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Total
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724,875
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999,875
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1,724,750
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(1)
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Represents primarily amounts earned in cash in 2019 with respect to the annual cash retainers, as well as cash paid for fractional shares awarded under the 2018 Omnibus Plan.
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(2)
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Reflects shares of common stock granted under the 2018 Omnibus Plan in 2019. The amounts reported reflect the grant-date fair value of each award, which equals the corresponding cash value of the award.
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(3)
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Mr. Litt's service on the Board ended on May 31, 2019. Ms. Goldberg's service on the Board began on May 31, 2019.
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(4)
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In 2019, the following directors elected to defer the receipt of all or a portion of their cash retainers and/or equity retainers under the Non-Employee Directors' Deferred Compensation Plan. The restricted share units were fully vested on the grant date.
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Name
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2019 Cash Deferrals
($)
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2019 Stock Deferrals
($)
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Restricted Share
Units Credited
(excl. dividend
equivalents) (#)
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Michael J. Embler(1)
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—
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125,000
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2,809
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Janice Fields
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76,000
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125,000
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4,409
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Nancy Killefer
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82,000
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125,000
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4,541
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Michelle Goldberg(2)
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41,000
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62,500
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2,535
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Jonathan Litt(2)
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41,000
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62,500
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2,116
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Cia Buckley Marakovits
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80,500
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125,000
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4,617
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Ronald W. Tysoe(1)
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—
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125,000
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2,809
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Myron E. Ullman, III
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112,000
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125,000
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5,325
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(1)
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Mr. Embler and Mr. Tysoe elected to defer 0% of their cash compensation in 2019.
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(2)
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Mr. Litt's service on the Board ended on May 31, 2019. Ms. Goldberg's service on the Board began on May 31, 2019.
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Objectives
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Our NEO compensation program is designed to:
• Align executives' long-term interests with those of our shareholders • Reward superior individual and Company performance • Attract, retain and motivate key executives who are critical to our operations |
Philosophy
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Our NEO compensation philosophy is built on the following principles:
• Provide total compensation that is fair and competitively positioned in the marketplace • Reward results linked to short-term and long-term performance (pay for performance) • Drive a focus on increasing long-term shareholder value • Ensure incentives do not encourage inappropriate risk-taking |
What We Do:
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Pay for Performance
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Balance long-term and short-term incentives through a mix of metrics and performance periods
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Benchmark compensation against an appropriate peer group
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Independent committee administrates our equity plans
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Use an industry specific index peer group as a long-term performance metric
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Maintain a Clawback Policy
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Maintain robust stock ownership requirements and monitor potential risks in our incentive plans
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Engage an independent compensation consultant
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What We Don't Do:
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Permit excise tax gross ups
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Allow for equity vesting of less than one year or “single trigger” Change in Control vesting under the 2018 Omnibus Plan
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Provide tenure-based benefits for executives, such as pension plans and retiree medical benefits
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Pay dividends or dividend equivalent rights prior to vesting of equity award
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Reprice, discount or reload stock options
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Provide guaranteed bonuses
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Net income attributable to common shareholders of $3.32 per diluted common share, compared to $0.95 per diluted common share in 2018
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Adjusted funds from operations (AFFO) per diluted common share of $3.71(1) compared to AFFO per diluted share of $3.83 in 2018(2) (for additional information on funds from operations (FFO) and AFFO, see “Use of Non-GAAP Measures” below)
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Comparable Center Net Operating Income (NOI) in 2019 compared to 2018:
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Decreased by 2.6% - including lease cancellation income
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Decreased by 1.3% - excluding lease cancellation income
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AFFO,
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Growth in Comparable Center NOI, excluding lease cancellation income,
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Asia goals related to combined center NOI and operating performance, and
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Absolute and relative total shareholder return (TSR).
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Similar to 2017 and 2018, Mr. R. Taubman volunteered, with the approval of the Committee, to forfeit all of his annual equity awards and the majority of his base salary as detailed further on pages 22 and 23.
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Similar to 2017 and 2018, the Committee adopted a tiered bonus funding approach that would begin funding the individual target cash bonus for Mr. R. Taubman only in the event our FFO/share exceeded $3.70. Based on our performance results (which exceeded the $3.70), Mr. R. Taubman received 2019 total direct pay of $1.4 million compared to his target total direct compensation of approximately $5 million.
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These forfeiture actions were initiated by Mr. R. Taubman and supported by the Committee and the Board, given the collective focus on the long-term health of the business and advancing long-term value creation for shareholders.
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Link to Program Objectives
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Type of Compensation
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Important Features
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Base Salary
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• Fixed level of cash compensation to attract and retain key executives in a competitive marketplace
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Cash
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• Determined based on evaluation of individual’s experience, current performance, and internal pay equity and a comparison to the executive compensation peer group
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Annual Cash Bonus
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• Target cash incentive opportunity (set as a percentage of base salary) that encourages executives to achieve annual Company financial goals, and for Taubman Asia, certain operating goals
• Assists in retaining, attracting and motivating employees in the near term
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Cash
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• U.S. funding based on the performance measures of FFO per diluted common share, as adjusted for extraordinary and/or unusual items, and growth in Comparable Center NOI
• Payouts generally are based on individual performance
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Long-Term Incentives Program: RSUs*
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• Focuses executives on achievement of long-term Company financial and strategic goals especially with respect to PSUs in creating long-term shareholder value (pay-for-performance) by using TSR (relative and absolute) and Comparable Center NOI performance metrics
• Assists in maintaining a stable, continuous management team in a competitive market
• Maintains shareholder-management alignment
• Easy to understand and track performance
• Limits dilution to existing shareholders relative to utilizing stock options
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Long-Term
Equity
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• Funding based on the performance measures of FFO per diluted common share, as adjusted for extraordinary and/or unusual items, and growth in Comparable Center NOI
• Payouts are based on individual performance
• Senior management can elect to receive their award as Profits Units although no executives elected to receive Profits Units in 2019.
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Long-Term Incentives Program: PSUs*
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Long-Term
Equity
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• 50-60% of annual long-term incentive award in 2019 (half based on relative TSR and half based on Comparable Center NOI & Absolute TSR) with a three-year performance period
• Three-year cliff-vest with actual payout of units at 0% to 300% of the target grant amount
• Provides some upside in up- or down-market based on relative performance
• Senior management can elect to receive their award as Profits Units although no executives elected to receive Profits Units in 2019.
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Retirement Benefits
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• Helps attract and retain executive talent
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Benefit
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• NEOs receive retirement benefits through the 401(k) Plan
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Perquisites
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• Assists in attracting and retaining employees in competitive marketplace
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Benefit
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• Limited in amount and the Committee maintains a strict policy regarding eligibility and use
• Messrs. Wright and Sharp's employment agreements permit certain expatriate benefits
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Change of Control Agreements
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• Attracts and retains employees in a competitive market
• Ensures continued dedication of employees in case of personal uncertainties or risk of job loss
• Attracts highly skilled employees in a competitive environment
• Provides confidentiality and non-compete protections
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Benefit
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• The Severance Plan terminated in accordance with its terms on December 11, 2019 and was approved on February 9, 2020
• "Double trigger" protections (meaning an individual must experience a qualifying terminatin in connection with a change of control in order to receive any benefits)apply to all benefits, except for equity awards granted under the 2008 Omnibus Plan. The 2018 Omnibus Plan and Severance Plan both contain double-trigger protections
• Messrs. R. and W. Taubman are not party to either the Severance Plan or a change in control agreement
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Severance Plan Benefits
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Benefit
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Employment Agreements
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Benefit
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• Specific for the individual - only applies to Messrs. P. Sharp (who resigned in October 2019) and P. Wright
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U.S.
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Asia
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Performance Metric
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Weighting
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Performance Metric
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Weighting
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FFO/share and Comparable Center NOI
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100
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%
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FFO/share and Comparable Center NOI
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50
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%
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Asia Net Incremental Expense Performance
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25
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%
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Asia Combined Center NOI
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25
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%
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The Committee administers the long-term incentive program. 2019 awards under the long-term incentive program were made in accordance with the 2018 Omnibus Plan made in the following forms:
- Restricted Share Units (RSUs)
- Performance Share Units (PSUs)
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Driving Shareholder Return
Long-term incentive grants are intended to balance our short-term operating focus and align the long-term financial interests of senior management with those of our shareholders.
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•
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40% RSUs and 60% PSUs (30% relative TSR and 30% Comparable Center NOI with Absolute TSR Modifier) (1)
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(1)
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With the exception of Mr. Wright due to the nature of his two-year assignment as described on page 25
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Relative Total Shareholder Return
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Less than 25th percentile
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25th percentile
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50th percentile
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75th percentile
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100th percentile
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Multiple of Target Award upon Vesting
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0x
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0.5x
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1x
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2x
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3x
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Average Comparable Center NOI Growth
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Less than 67% of Target
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67% of Target
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Target
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117% of Target
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133% of Target
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Multiple of Target Award upon Vesting
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0x
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0.5x
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1x
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2x
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3x
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Factors Guiding Decisions
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•
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Compensation program objectives and philosophy (greater emphasis on variable pay - primarily long-term incentives)
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Company financial performance
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•
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Individual executive performance
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•
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Recommendations of the CEO for other NEOs
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Market pay practices
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Assessment of risk management, including avoidance of unnecessary or excessive risk taking to ensure long-term shareholder value
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Shareholder input including “say-on-pay” vote
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Advice of independent outside compensation consultant
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2019 Target Base Salary* ($)
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2019
Target Bonus Percentage of Base Salary
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2019
Actual Bonus ($)
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Robert S. Taubman
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928,818
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125%
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1,200,000
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Simon J. Leopold
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525,000
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100%
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600,000
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William S. Taubman
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750,000
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100%
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775,000
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Paul A. Wright
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835,000
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55%
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440,000
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Peter J. Sharp
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500,000
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55%
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—
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(1)
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The amounts reflect each NEO's LTIP target. These amounts differ from the grant-date fair value amounts reflected in the Summary Compensation Table-Stock Awards column, which are based on various valuation assumptions described in note 13 of our audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019.
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Performance Period
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Relative TSR Percentile Ranking During Performance Period
(Estimates as of December 31, 2019)
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Estimated/Actual
Payout of Target PSUs
(Estimates as of December 31, 2019)
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2019 Award
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March 12, 2019 - March 1, 2022
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3%
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Estimated 0x payout
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2018 Award
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March 7, 2018 - March 1, 2021
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8%
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Estimated 0x payout
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2017 Award
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February 20, 2017 - March 1, 2020
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26%
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Actual 0.52x payout
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Performance Period
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Comparable Center NOI During Performance Period with Absolute TSR Modifier (as of December 31, 2019)
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Estimated/Actual
Payout of Target PSUs
(as of December 31, 2019)
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2019 Award
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Jan 1, 2019 - Dec 31, 2021
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0.2%
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Estimated 0x payout 1
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2018 Award
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Jan 1, 2018 - Dec 31, 2020
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2%
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Estimated .5x payout 1
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2017 Award
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Jan 1, 2017 - Dec 31, 2019
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1.6%
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Actual 0x payout
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(i)
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payment of annual salary, and (if any), unused paid time off or unused vacation earned and accrued prior to such termination (paid no more than 30 days after termination);
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(ii)
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a cash lump sum payment (payable within 65 days after termination) equal to the sum of (A) 250% of the sum of (I) 12 times the highest monthly base salary in the twelve-month period preceding the month in which termination occurs (Annual Base Salary) and (II) the greater of the Participant’s target bonus in the year of termination or the highest bonus earned in the last three full fiscal years (or for such lesser number of full fiscal years prior to termination), including annualization for a bonus earned in a partial fiscal year (Annual Bonus) (collectively, CIC Cash Severance) and (B) 18 times the applicable monthly COBRA premium, with the CIC Cash Severance to be reduced by any Annual Base Salary or Annual Bonus payable for a termination event under any employment agreement (including a change of control employment agreement) the Participant otherwise has with us;
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(iii)
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full and immediate vesting of the Participant’s unvested equity awards (other than performance equity awards) granted under the 2008 or 2018 Omnibus Plan; and
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(iv)
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the vesting of the Participant’s unvested performance equity awards granted under the 2008 or 2018 Omnibus Plan, with the determination of performance and other factors as provided under the terms of the applicable plan and related award agreement.
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Stock Ownership Guidelines
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Stock ownership guidelines are in place for all U.S. based senior executives and are intended to align the interests of executive management with those of our shareholders by requiring executives to be subject to the same long-term stock price volatility our shareholders experience.
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Linking Compensation to Stock Performance
Guidelines tie the compensation of the U.S. NEOs to our stock performance, since the increase or decrease in our stock price impacts their personal holdings. As of February 1, 2020, all continuing NEOs complied with the accumulation, or target ownership, requirement as per the Stock Ownership Guidelines.
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Required Number of Shares Equivalent to*:
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CEO
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6x base salary
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CFO
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6x base salary
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COO
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6x base salary
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All Other U.S. Executive Officers
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3x base salary
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The Compensation Committee
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Mayree C. Clark, Chair
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Janice L. Fields
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Cia Buckley Marakovits
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Ronald W. Tysoe
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Name and
Principal Position
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Year
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Salary
($)
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Bonus
($)(1)
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Stock
Awards
($)(2)
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Non-Equity
Incentive Plan
Compensation
($)(3)
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All Other
Compensation
($)(4)
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Total
($)
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|||||
Robert S. Taubman
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2019
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120,010
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—
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1,200,000
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37,337
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|
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1,357,347
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Chairman, President and CEO
|
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2018
|
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119,786
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|
|
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—
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|
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1,498,000
|
|
|
224,847
|
|
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1,842,633
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2017
|
|
152,719
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|
|
|
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2,849,591
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—
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20,839
|
|
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3,023,149
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|
Simon J. Leopold
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2019
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|
525,000
|
|
200,000
|
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1,265,509
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600,000
|
|
17,864
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|
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2,608,373
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Executive Vice President, CFO and Treasurer
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2018
|
|
525,000
|
|
200,000
|
|
1,110,945
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|
678,000
|
|
72,199
|
|
|
2,586,144
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2017
|
|
521,154
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|
|
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1,708,921
|
|
315,000
|
|
16,456
|
|
|
2,561,531
|
|
||||
William S. Taubman
|
|
2019
|
|
98,978
|
|
|
|
|
—
|
|
|
775,000
|
|
|
26,037
|
|
|
900,015
|
|
Chief Operating Officer
|
|
2018
|
|
98,978
|
|
|
|
|
—
|
|
|
968,000
|
|
|
147,350
|
|
|
1,214,328
|
|
|
2017
|
|
127,374
|
|
|
|
|
1,855,670
|
|
|
—
|
|
|
18,703
|
|
|
2,001,747
|
|
|
Paul A. Wright
|
|
2019
|
|
835,000
|
|
|
|
|
791,282
|
|
|
440,000
|
|
|
261,303
|
|
|
2,327,585
|
|
EVP, Global Head of Leasing
|
|
2018
|
|
835,000
|
|
|
|
|
734,168
|
|
|
525,000
|
|
|
112,630
|
|
|
2,206,798
|
|
|
2017
|
|
707,822
|
|
|
|
|
1,193,932
|
|
|
332,692
|
|
|
116,168
|
|
|
2,350,614
|
|
|
Peter J. Sharp
|
|
2019
|
|
375,000
|
|
|
|
|
602,625
|
|
|
—
|
|
|
1,407,711
|
|
|
2,385,336
|
|
Former President, Taubman Asia
|
|
2018
|
|
500,000
|
|
|
|
|
331,876
|
|
|
350,000
|
|
|
406,144
|
|
|
1,588,020
|
|
|
2017
|
|
500,000
|
|
|
|
|
905,090
|
|
|
220,000
|
|
|
406,740
|
|
|
2,031,830
|
|
(1)
|
In 2017, the Committee approved a Workforce Retention Program for key employees including a cash retention award payable to Mr. Leopold in the amount of $400,000, payable in equal installments in March 2018 and 2019.
|
(2)
|
The amounts reported consist of the grant-date fair value (excluding the effect of estimated forfeitures) of RSUs, PSUs and Profits Units granted under the 2008 Omnibus Plan and 2018 Omnibus Plan.
|
(3)
|
The amounts earned in 2019 were under the 2019 annual bonus program. Payment of such bonus occurred on March 6, 2020, for NEOs. Mr. Wright's bonus payment includes an additional $250,000 pre-paid bonus (paid over equal installments throughout the year) with a claw-back provision based on individual and Company performance per the terms of his employment agreement for his expatriate assignment. Mr. Sharp did not receive a bonus due to his resignation in October 2019.
|
(4)
|
Amounts for 2019 include: 401(k) Plan Company contributions for Mr. R. Taubman ($6,001); Mr. Leopold ($14,000); Mr. W. Taubman ($4,949); and Mr. Wright ($14,000). The following perquisites for 2019: Mr. R. Taubman - financial planning ($10,000) and insurance premiums ($21,336). Mr. Simon - insurance premiums ($3,864). Mr. W. Taubman - financial planning ($10,000) and insurance premiums ($11,088). Mr. Wright's amounts also include expatriate payments relating to shipping of household goods ($3,810 which includes a $1,760 gross up), a grossed up payment to cover taxes on RSU grants given in 2015 and 2016 ($240,972) and insurance premiums ($2,520). Mr. Sharp - housing costs ($202,057), auto-related costs, personal travel and other personal expenses paid in equal monthly installments through September 2019 and paid in a lump sum for the remainder of his employment agreement term following his resignation in October 2019 ($150,000), travel and life insurance ($15,297), group medical plans ($40,357), and per the Separation Agreement a lump sum cash redemption payment for his equity ownership interest in Taubman Properties Asia III ($1,000,000).
|
•
|
Relative TSR: Our relative performance against members of a comparator group consisting of companies in the FTSE NAREIT All REITs Index (Property Sector: Retail) as of the grant date (NAREIT Index), with respect to TSR over a three-year period. We utilized the full NAREIT Index to ensure the perception of objectivity in setting such performance measures.
|
•
|
NOI Growth with Absolute TSR Modifier: The three-year simple average for Comparable Center NOI growth with growth targets set by the Committee at the time of grant which are reasonably possible but challenging based on historical comparisons and our budget. PSUs have a 0% to 300% payout with an absolute TSR modifier which limits the payout to 100% (target) if absolute TSR is not positive for the three-year period. Profits Units also have an absolute TSR modifier which limits the payout to 1/3rd of the award value (target) if absolute TSR is not positive for the three-year period.
|
CEO Pay Ratio
|
2018 CEO Pay
|
CEO Pay Description
|
16:1
|
$1,357,347
|
Summary Compensation Table Pay (required SEC disclosure)
|
59:1
|
$4,990,015
|
Annual Target Pay
|
|
|
|
|
Estimated Possible Payouts
Under Non-Equity
Incentive Plan Awards (1)
|
|
Estimated Future Payouts
Under Equity
Incentive Plan Awards
|
|
All Other
Stock
Awards:
Number
of Shares
of Stock
or Units
(#)
|
|
Grant Date
Fair Value
of Stock and
Option
Awards
($)(5)
|
||||||||||||||||
Name
|
|
Grant
Date
|
|
Threshold
($)
|
|
Target
($)(1)
|
|
Maximum
($)
|
|
Threshold
(#)
|
|
Target
(#)
|
|
Maximum
(#)
|
|
|||||||||||
Robert S. Taubman
|
|
N/A
|
|
—
|
|
|
1,161,023
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Simon J. Leopold
|
|
N/A
|
|
—
|
|
|
525,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(2)
|
|
3/12/2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,123
|
|
|
425,726
|
|
(3)
|
|
3/12/2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,092
|
|
|
18,276
|
|
|
—
|
|
|
520,501
|
|
(4)
|
|
3/12/2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,092
|
|
|
18,276
|
|
|
—
|
|
|
319,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
William S. Taubman
|
|
N/A
|
|
—
|
|
|
750,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Paul A. Wright
|
|
N/A
|
|
—
|
|
|
462,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(2)
|
|
3/12/2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,576
|
|
|
344,648
|
|
(3)
|
|
3/12/2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,240
|
|
|
9,720
|
|
|
—
|
|
|
276,826
|
|
(4)
|
|
3/12/2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,240
|
|
|
9,720
|
|
|
—
|
|
|
169,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Peter J. Sharp
|
|
N/A
|
|
—
|
|
|
275,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(2)
|
|
3/12/2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,868
|
|
|
202,722
|
|
(3)
|
|
3/12/2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,901
|
|
|
8,703
|
|
|
—
|
|
|
247,861
|
|
(4)
|
|
3/12/2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,901
|
|
|
8,703
|
|
|
—
|
|
|
152,041
|
|
(1)
|
The amounts in this column relate to the 2019 annual bonus program. Mr. Wright's full year target is $462,500 which consists of a bonus target of $212,500 and an additional bonus opportunity of $250,000 paid on a biweekly basis with a clawback provision as per the terms of his employment agreement.
|
(2)
|
Awards of RSUs.
|
(3)
|
Awards of relative TSR PSUs.
|
(4)
|
Awards of Comparable Center NOI PSUs.
|
(5)
|
Each RSU awarded on March 12, 2019 had a grant date fair value of $52.41, each TSR PSU had a grant date fair value of $85.44, and each NOI PSU had a grant date fair value of $52.41.
|
|
|
|
Stock Awards
|
||||||||
Name
|
Grant
Date
|
|
Number
of Shares
or Units
of Stock
That Have
Not Vested
(#)(1)
|
Market
Value of
Shares or
Units of
Stock That
Have Not
Vested
($)(2)
|
Equity Incentive
Plan
Awards: Number
of Unearned
Shares,
Units or Other Rights
That Have
Not Vested (#)(3)
|
Equity Incentive Plan
Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested
($)(2)
|
|||||
Robert S. Taubman
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Simon J. Leopold
|
Various
|
|
23,050
|
|
716,625
|
|
—
|
|
—
|
|
|
|
3/12/2019
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
3/12/2019
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
3/7/2018
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(4
|
)
|
3/7/2018
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
3/7/2018
|
|
—
|
|
—
|
|
5,405
|
|
168,042
|
|
|
(4
|
)
|
3/7/2018
|
|
—
|
|
—
|
|
2,130
|
|
66,222
|
|
|
2/20/2017
|
|
—
|
|
—
|
|
4,590
|
|
142,703
|
|
|
(4
|
)
|
2/20/2017
|
|
—
|
|
—
|
|
1,466
|
|
45,578
|
|
|
2/20/2017
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(4
|
)
|
2/20/2017
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|||||
William S. Taubman
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Paul A. Wright
|
Various
|
|
24,808
|
|
771,280
|
|
—
|
|
—
|
|
|
|
3/12/2019
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
3/12/2019
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
3/7/2018
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
3/7/2018
|
|
—
|
|
—
|
|
2,875
|
|
89,384
|
|
|
|
2/20/2017
|
|
—
|
|
—
|
|
1,487
|
|
46,231
|
|
|
|
2/20/2017
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
3/13/2017
|
|
—
|
|
—
|
|
1,005
|
|
31,246
|
|
|
|
3/13/2017
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Peter J. Sharp
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1)
|
The RSUs vest as follows:
|
|
|
March 1,
|
|||||||
Name
|
|
2020
|
|
2021
|
|
2022
|
|||
Robert S. Taubman
|
|
—
|
|
|
—
|
|
|
—
|
|
Simon J. Leopold
|
|
6,773
|
|
|
8,154
|
|
|
8,123
|
|
William S. Taubman
|
|
—
|
|
|
—
|
|
|
—
|
|
Paul A. Wright
|
|
12,398
|
|
|
5,834
|
|
|
6,576
|
|
Peter J. Sharp
|
|
—
|
|
|
—
|
|
|
—
|
|
(2)
|
Based upon the closing price of our common stock on the NYSE on December 31, 2019 of $31.09.
|
(3)
|
Performance goal assumptions are based upon performance through December 31, 2019. NOI PSUs: Awards granted in 2017 and 2019 were both below the threshold performance goal and awards granted in 2018 were between the threshold and target performance goals. TSR PSUs: Awards granted in 2017, 2018, and 2019 were all below the threshold performance goals. However, the 2017 TSR PSU grant subsequently resulted in a 0.52x payout between the threshold and target performance goals, and is included at above the threshold performance goal, but at or below the target performance goal. For additional information see pages 23 and 24 in the Compensation Discussion and Analysis. The achievement of the target performance goal would result in a 100% payout of the target PSU awards granted in 2019, 2018, and 2017.
|
|
|
March 1,
|
|||||||||||||
Name
|
|
2020
|
|
2021
|
|
2022
|
|||||||||
|
|
TSR
|
NOI
|
|
TSR
|
NOI
|
|
TSR
|
NOI
|
||||||
Robert S. Taubman
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Simon J. Leopold
|
|
4,590
|
|
4,590
|
|
|
5,405
|
|
5,405
|
|
|
6,092
|
|
6,092
|
|
William S. Taubman
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Paul A. Wright
|
|
2,492
|
|
2,492
|
|
|
2,875
|
|
2,875
|
|
|
3,240
|
|
3,240
|
|
Peter J. Sharp
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
(4)
|
Represents maximum units awarded for TRG Profits Units for DERS.
|
|
|
|
Stock Awards
|
||
Name
|
|
|
Number of Shares
Acquired on Vesting
(#)(1)
|
|
Value Realized on
Vesting
($)(2)
|
Robert S. Taubman
|
|
|
—
|
|
—
|
Simon J. Leopold
|
|
|
7,600
|
|
236,284
|
William S. Taubman
|
|
|
—
|
|
—
|
Paul A. Wright
|
|
|
3,893
|
|
200,256
|
Peter J. Sharp
|
|
|
—
|
|
—
|
(1)
|
Includes the vesting of RSUs and PSUs that vested on March 1, 2019. Additional RSUs vested on December 31, 2019 related to a Retention Award for Mr. Leopold.
|
(2)
|
The value realized for purposes of the table is based upon the number of shares of common stock received upon vesting multiplied by the closing price of the common stock on the NYSE on the vesting date. The closing price of the common stock on March 1, 2019 and December 31, 2019 was $51.44 and $31.09, respectively.
|
Name
|
|
Plan
|
|
Aggregate
Earnings (Loss)
in Last FY
($)(2)
|
|
Aggregate
Withdrawals/
Distributions
($)(3)
|
|
Aggregate
Balance at
Last FYE
($)(4)
|
||||
Robert S. Taubman
|
|
Supplemental Retirement Savings Plan
|
|
22,549
|
|
|
|
|
|
371,297
|
|
|
|
|
Option Deferral Agreement
|
|
(12,546,180
|
)
|
(5)
|
|
2,344,014
|
|
|
27,087,528
|
|
William S. Taubman
|
|
Supplemental Retirement Savings Plan
|
|
21,012
|
|
|
|
|
|
346,006
|
|
(1)
|
Our contributions to the supplemental retirement savings plan ended in 2013.
|
(2)
|
None of the earnings set forth in the table are above-market or preferential, and therefore none of such amounts are reflected in the Summary Compensation Table.
|
(3)
|
Withdrawals and distributions are not reflected in the Summary Compensation Table.
|
(4)
|
For Messrs. R. Taubman and W. Taubman, $71,902 and $65,078, respectively, was reported in the Summary Compensation Table from 2006 through 2013 as compensation, in aggregate, all of which related to the Company's contributions to the supplemental retirement savings plan.
|
(5)
|
Represents a loss due to a $14.40 per share decrease in the common stock price. The share price decrease is with respect to the options previously exercised and the deferral of the underlying TRG units.
|
•
|
the amounts noted above for termination by reason of death or disability;
|
•
|
two and a half times the executive’s annual base salary and an annual cash bonus amount;
|
•
|
continued welfare benefits and perquisites for at least thirty months; and
|
•
|
outplacement services for one year.
|
(i)
|
Base salary and additional salary shall continue to be paid to him until the end of the Wright Term;
|
(ii)
|
Payment of the target bonus and additional bonus for the period ending at the end of the Wright Term or prorated for any partial year that may fall within the aforementioned period;
|
(iii)
|
Reimbursement for the cost of continuing his health insurance coverage under our benefit plans for the maximum continuation period allowed under such plans, but not longer than three months; provided, however, that (i) he shall in good faith endeavor to find other comparable employment, and (ii) any salary or bonus continuation due to him will be subject to reduction on a dollar-for-dollar basis according to any cash compensation earned by him as a result of such other employment; and
|
(iv)
|
Reimbursement for his reasonable out of pocket expenses incurred in relocating back to Hong Kong.
|
(i)
|
Mr. Wright fully participates in our sponsored home marketing program;
|
(ii)
|
The residence was listed for sale at a reasonable and market rate as advised by an independent realtor (and confirmed by appraisal if requested by us); and
|
(iii)
|
We were provided with all relevant documentation related to the purchase and sale of the residence.
|
•
|
Any payments, or benefits, provided by the Severance Plan as it was not in effect on December 31, 2019.
|
•
|
Accrued salary, cash bonus and paid time off.
|
•
|
Potential payment under Mr. Wright's Home Protection Agreement upon termination resulting from a Change of Control or reimbursement of reasonable out of pocket expatriate expenses relating to Mr. Wright relocating back to Hong Kong.
|
•
|
Costs of any mandated governmental assistance program to former employees.
|
•
|
Amounts outstanding under the Company's 401(k) plan.
|
•
|
Supplemental Retirement Savings Plan. If such participant's employment is terminated for any reason, upon the occurrence of specified events (including a change of control of TRG, the dissolution of TRG or the termination (without renewal) of the Manager's services agreement with TRG), or we accelerate such payment as of December 31, 2019, then the participant would receive the aggregate balance amount relating to the plan as set forth in the “Non-qualified Deferred Compensation in 2019” table.
|
•
|
Mr. R. Taubman's Deferral of TRG Units. If Mr. R. Taubman's employment is terminated for any reason as of December 31, 2019, the Deferred TRG units will be paid to Mr. R. Taubman in five annual installments. If Mr. R. Taubman's employment is terminated within six months of a change of control, then the Deferred TRG units will be paid to Mr. R. Taubman in a single distribution. The aggregate balance amount relating to this deferral arrangement is set forth in the “Non-qualified Deferred Compensation in 2019” table.
|
•
|
The 2008 Omnibus Plan provides for the acceleration of vesting of share-based awards upon retirement, death, disability, layoff in connection to a reduction in force or a change of control. The closing price of our common stock on December 31, 2019 was $31.09. The table reflects the intrinsic value of such acceleration, which is:
|
•
|
for each unvested RSU or Restricted TRG Profits Units, $31.09; and
|
•
|
for each PSU or Profits Units, in the case of death, disability, layoff in connection to a reduction in force (or retirement, for the annual PSU grants) or in the case of a change of control, $31.09 multiplied by:
|
•
|
0x for each 2019 NOI TRG Profit Unit or PSU (estimated multiplier as of December 31, 2019)
|
•
|
0x for each 2019 relative TSR Profit Unit or PSU (estimated multiplier as of December 31, 2019)
|
•
|
0.5x for each 2018 NOI TRG Profit Unit or PSU (estimated multiplier as of December 31, 2019)
|
•
|
0x for each 2018 relative TSR Profit Unit or PSU (estimated multiplier as of December 31, 2019)
|
•
|
0x for each 2017 NOI TRG Profit Unit or PSU (actual multiplier as of December 31, 2019)
|
•
|
0.52x for each 2017 relative TSR Profit Unit or PSU (actual multiplier as of March 1, 2020)
|
•
|
The Committee has discretion to accelerate the vesting of RSU, PSU and Profits Units awards to the extent not expressly set forth above. The table assumes the Committee does not utilize such discretion.
|
•
|
For a termination following a change of control, the table below assumes such termination is other than for cause, death or disability, or due to the executive resigning for good reason, or upon certain terminations in connection with or in anticipation of a change of control.
|
•
|
None of the NEOs are eligible for retirement and therefore termination due to retirement is not included in the table below.
|
•
|
Life insurance amounts only reflect policies paid for by us.
|
•
|
The table assumes a “disability” is of a long-term nature, which triggers vesting of share-based awards. Disability payments are shown on an annual basis.
|
|
|
Cash
Severance ($)(5)
|
|
Miscellaneous
Benefits ($)
|
|
Acceleration
of Share-
Based
Awards ($)
|
|
Life
Insurance
Proceeds ($)
|
|
Annual
Disability
Benefits ($)(6)
|
|
Total
($)
|
||||||
Robert S. Taubman(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Death
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,400,000
|
|
|
—
|
|
|
1,400,000
|
|
Disability
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
360,000
|
|
|
360,000
|
|
Simon J. Leopold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Death
|
|
—
|
|
|
—
|
|
|
893,788
|
|
|
1,400,000
|
|
|
—
|
|
|
2,293,788
|
|
Disability
|
|
—
|
|
|
—
|
|
|
893,788
|
|
|
—
|
|
|
360,000
|
|
|
1,253,788
|
|
Layoff in connection with a reduction in force(2)
|
|
—
|
|
|
—
|
|
|
893,788
|
|
|
—
|
|
|
—
|
|
|
893,788
|
|
Change of control(2)
|
|
3,007,500
|
|
|
91,470
|
|
|
893,788
|
|
|
—
|
|
|
—
|
|
|
3,992,758
|
|
William S. Taubman(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Death
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,400,000
|
|
|
—
|
|
|
1,400,000
|
|
Disability
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
360,000
|
|
|
360,000
|
|
Paul Wright
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Termination without cause or for Good Reason(3)
|
|
324,375
|
|
|
8,247
|
|
|
1,114,328
|
|
|
—
|
|
|
—
|
|
|
1,446,950
|
|
Death
|
|
—
|
|
|
—
|
|
|
1,114,328
|
|
|
1,400,000
|
|
|
—
|
|
|
2,514,328
|
|
Disability
|
|
—
|
|
|
—
|
|
|
1,114,328
|
|
|
—
|
|
|
360,000
|
|
|
1,474,328
|
|
Layoff in connection with a reduction in force(3)
|
|
324,375
|
|
|
8,247
|
|
|
1,114,328
|
|
|
—
|
|
|
—
|
|
|
1,446,950
|
|
Change of control(3)
|
|
324,375
|
|
|
8,247
|
|
|
1,114,328
|
|
|
—
|
|
|
—
|
|
|
1,446,950
|
|
Peter Sharp(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Except as specified in “-Items Not Reflected in Table,” such person does not receive any additional payments if (A) he voluntarily terminates his employment, or (B) his employment is terminated by the Company with or without cause.
|
(2)
|
Miscellaneous Benefits amount includes the estimated value of continuing health and welfare benefits for 30 months after December 31, 2019 (using 2020 COBRA rates) and outplacement services for one year after December 31, 2019 as per Mr. Leopold's Change-in-Control Agreement.
|
(3)
|
Miscellaneous Benefits amount includes the estimated payment equivalent in value of continuing health benefits for 3 months after December 31, 2019 (using 2020 COBRA rates) as per Mr. Wright's employment agreement.
|
(4)
|
Mr. Sharp resigned in October 2019. For details of his Separation Agreement, see “Potential Payments Upon Termination or Change-In-Control” section above.
|
(5)
|
Cash Severance amount reflects the amount payable under the NEO's Employment Agreement or Change-In-Control Agreement.
|
(6)
|
For terminations due to disability, the total amounts only include one year of disability benefits. In actuality, such amount will be paid on an annual basis.
|
|
Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants, and Rights
|
|
Weighted-Average Exercise Price of Outstanding Options, Warrants, and Rights
|
|
Number of Securities Remaining Available for Future Issuances Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))
|
|
||||
|
(a)
|
|
(b)
|
|
(c)
|
|
||||
Equity compensation plans approved by security holders:
|
|
|
|
|
|
|
||||
The Taubman Company 2018 Omnibus Long-Term Incentive Plan: (1)
|
|
|
|
|
2,482,012
|
|
(1)
|
|||
Profits Units (2)
|
123,251
|
|
|
|
|
|
|
|||
Performance Share Units (3)
|
176,250
|
|
|
|
(4)
|
|
|
|||
Restricted Share Units
|
179,846
|
|
|
|
(4)
|
|
|
|||
|
479,347
|
|
|
|
|
2,482,012
|
|
|
||
Equity compensation plan not approved by security holders -
|
|
|
|
|
|
|
||||
Non-Employee Directors’ Deferred Compensation Plan (5)
|
74,632
|
|
|
|
(6)
|
|
(7)
|
|||
|
553,979
|
|
|
$
|
—
|
|
|
2,482,012
|
|
|
(1)
|
Under The Taubman Company 2018 Omnibus Plan, directors, officers, employees, and other service providers of TCO may receive RSUs, restricted TRG Units, options to purchase common shares or TRG Units, share appreciation rights, PSUs, unrestricted shares or TRG Units, and other awards to acquire up to an aggregate of 2,800,000 shares of common stock or TRG Units. No further awards will be made under the 2008 Omnibus Plan or the 1992 Incentive Option Plan.
|
(2)
|
The maximum number of performance-based Profits Units was issued at grant, eventually subject to a recovery and cancellation of previously granted amounts depending on actual performance against targeted measures of total shareholder return relative to that of a peer group and net operating income thresholds over a three-year period.
|
(3)
|
Amount represents 58,750 performance share units at their maximum payout ratio of 300%. This amount may overstate dilution to the extent actual performance is different than such assumption. The actual number of PSUs that may ultimately vest will range from 0- 300% based on actual performance against targeted measures of total shareholder return relative to that of a peer group and net operating income thresholds over a three-year period.
|
(4)
|
Excludes RSUs and PSUs issued under the Omnibus Plans because they are converted into common stock on a one-for-one basis at no additional cost.
|
(5)
|
The Deferred Compensation Plan, which was approved by the Board in May 2005, gives each non-employee director of TCO the right to defer the receipt of all or a portion of his or her annual director retainer fee until the termination of such director's service on the Board of Directors and for such deferred amount to be denominated in RSUs. The number of RSUs received equals the amount of the deferred retainer fee divided by the fair market value of the common stock on the business day immediately before the date the director would otherwise have been entitled to receive the retainer fee. The RSUs represent the right to receive equivalent shares of common stock at the end of the deferral period. During the deferral period, when we pay cash dividends on the common stock, the directors' notional deferral accounts are credited with dividend equivalents on their deferred RSUs, payable in additional RSUs based on the fair market value of the common stock on the business day immediately before the record date of the applicable dividend payment. Each Director's notional account is 100% vested at all times.
|
(6)
|
The RSUs are excluded because they are converted into common stock on a one-for-one basis at no additional cost.
|
(7)
|
The number of securities available for future issuance is unlimited and will reflect whether non-employee directors elect to defer all or a portion of their annual retainers.
|
Directors, Director Nominees, Executive Officers and More Than 5% Shareholders (1)
|
|
Number of
Shares Owned
Directly or
Indirectly
|
|
Number of Shares Which Can Be Acquired Within 60 Days of Record Date Held in
Deferral Plans (2)
|
|
Number of
Shares
Beneficially Owned
|
|
Percent of
Shares
|
|||||
Robert S. Taubman
|
|
25,667,759
|
|
|
—
|
|
|
25,667,759
|
|
(3)(8)
|
|
29.3
|
|
Simon J. Leopold
|
|
43,919
|
|
|
—
|
|
|
43,919
|
|
(4)
|
|
*
|
|
William S. Taubman
|
|
25,297,685
|
|
|
—
|
|
|
25,297,685
|
|
(5)(8)
|
|
28.8
|
|
Peter J. Sharp
|
|
8,744
|
|
|
—
|
|
|
8,744
|
|
|
|
*
|
|
Paul A. Wright
|
|
14,397
|
|
|
—
|
|
|
14,397
|
|
|
|
*
|
|
Mayree C. Clark
|
|
9,690
|
|
|
—
|
|
|
9,690
|
|
|
|
*
|
|
Michael J. Embler
|
|
5,000
|
|
|
7,036
|
|
|
12,036
|
|
|
|
*
|
|
Janice L. Fields
|
|
—
|
|
|
7,352
|
|
|
7,352
|
|
|
|
*
|
|
Michelle J. Goldberg
|
|
—
|
|
|
5,425
|
|
|
5,425
|
|
|
|
*
|
|
Nancy Killefer
|
|
1,682
|
|
|
4,818
|
|
|
6,500
|
|
|
|
*
|
|
Cia Buckley Marakovits
|
|
4,000
|
|
|
15,544
|
|
|
19,544
|
|
|
|
*
|
|
Ronald W. Tysoe
|
|
—
|
|
|
29,767
|
|
|
29,767
|
|
|
|
*
|
|
Myron E. Ullman, III
|
|
15,025
|
|
|
20,758
|
|
|
35,783
|
|
|
|
*
|
|
Estate of A. Alfred Taubman
|
|
22,503,279
|
|
|
—
|
|
|
22,503,279
|
|
(6)(8)
|
|
25.7
|
|
200 E. Long Lake Road, Suite 180
Bloomfield Hills, MI 48304
|
|
|
|
|
|
|
|
|
|
||||
Gayle Taubman Kalisman
|
|
22,976,268
|
|
|
—
|
|
|
22,976,268
|
|
(7)(8)
|
|
26.2
|
|
200 E. Long Lake Road, Suite 180
Bloomfield Hills, MI 48304
|
|
|
|
|
|
|
|
|
|
||||
Taubman Ventures Group LLC
|
|
22,498,279
|
|
|
—
|
|
|
22,498,279
|
|
(8)
|
|
25.7
|
|
200 E. Long Lake Road, Suite 180
Bloomfield Hills, MI 48304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Vanguard Group, Inc.
|
|
8,843,584
|
|
|
—
|
|
|
8,843,584
|
|
(9)
|
|
10.1
|
|
100 Vanguard Blvd.
Malvern, PA 19355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BlackRock, Inc.
|
|
6,889,162
|
|
|
—
|
|
|
6,889,162
|
|
(10)
|
|
7.9
|
|
55 East 52nd Street
New York, NY 10055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cohen & Steers, Inc.
|
|
5,718,034
|
|
|
—
|
|
|
5,718,034
|
|
(11)
|
|
6.5
|
|
280 Park Avenue, 10th Floor
New York, NY 10017
|
|
|
|
|
|
|
|
|
|
||||
FMR LLC
|
|
3,422,496
|
|
|
|
|
3,422,496
|
|
(12)
|
|
3.9
|
|
|
245 Summer Street
Boston, MA 02210
|
|
|
|
|
|
|
|
|
|
||||
Directors and Executive Officers as a group
(13 persons)
|
|
26,041,872
|
|
|
90,700
|
|
|
26,132,572
|
|
(13)
|
|
29.8
|
|
(1)
|
We have relied upon information supplied by certain beneficial owners and upon information contained in filings with the SEC. Share figures shown assume that outstanding TRG units are not exchanged for common stock under the Continuing Offer (which TRG units may be exchanged at a ratio of one share of common stock for every TRG unit) and that outstanding shares of Series B Preferred Stock are not converted into common stock (which is permitted, under specified circumstances, at the ratio of one share of common stock for every 14,000 shares of Series B Preferred Stock, with any resulting fractional shares redeemed for cash). As of April 22, 2020, there were 87,687,538 beneficially owned shares of Voting Stock outstanding, consisting of 61,608,379 shares of common stock and 26,079,159 shares of Series B Preferred Stock.
|
(2)
|
Under the Taubman Centers, Inc. Non-Employee Directors' Deferred Compensation Plan, the RSUs granted are fully vested at the time of grant but do not have voting rights. The deferral period continues until the earlier of the termination of director service or a change of control.
|
(3)
|
Consists of (A) 38,314 shares of Series B Preferred Stock owned by Robert Taubman, 1,338,496 shares of Series B Preferred Stock owned by R & W-TRG LLC (R&W), a company owned by Robert Taubman and his brother, William Taubman (shared voting and dispositive power), 22,311,442 shares of Series B Preferred Stock owned by Taubman Ventures Group LLC (TVG) (shared voting and dispositive power), 5,000 shares of Series B Preferred Stock owned by TG Partners (shared voting and dispositive power) and 472,650 shares of Series B Preferred Stock owned by TF Associates, LLC (TFA) (shared voting and dispositive power) (in aggregate, 92.7% of the Series B Preferred Stock), and (B) 267,395 shares of common stock that Robert Taubman owns, 265,246 shares of common stock that RSTCO, LLC owns, 42,880 shares of common stock owned by an irrevocable trust for which Robert Taubman is the sole trustee for the benefit of Robert Taubman and his children, 27,895 shares of common stock owned in UTMA accounts for the benefit of his children, 711,504 shares of common stock owned by R&W (shared voting and dispositive power), 186,837 shares of common stock owned by TVG (shared voting and dispositive power) and 100 shares of common stock owned by the A. Alfred Taubman Restated Revocable Trust (shared voting and dispositive power).
|
(4)
|
Consists of (A) 21,967 shares of Series B Preferred Stock, and (B) 21,932 shares of common stock and 20 shares of common stock on an as-converted basis held through a stock fund of the 401(k) plan, all owned by Simon Leopold.
|
(5)
|
Consists of (A) 25,036 shares of Series B Preferred Stock owned by William Taubman, 1,338,496 shares of Series B Preferred Stock owned by R&W (shared voting and dispositive power), 22,311,442 shares of Series B Preferred Stock owned by TVG (shared voting and dispositive power), 5,000 shares of Series B Preferred Stock owned by TG Partners (shared voting and dispositive power) and 472,650 shares of Series B Preferred Stock owned by TFA (shared voting and dispositive power) (in aggregate, 92.6% of the Series B Preferred Stock), and (B) 43,032 shares of common stock that William Taubman owns, 203,588 shares of common stock that WSTCO, LLC owns, 711,504 shares of common stock owned by R&W (shared voting and dispositive power), 186,837 shares of common stock owned by TVG (shared voting and dispositive power) and 100 shares of common stock owned by the A. Alfred Taubman Restated Revocable Trust (shared voting and dispositive power).
|
(6)
|
Consists of (A) 22,311,442 shares of Series B Preferred Stock owned by TVG (shared voting and dispositive power) and 5,000 shares of Series B Preferred Stock owned by TG Partners (in aggregate, 85.6% of the Series B Preferred Stock), and (B) 186,837 shares of common stock owned by TVG (shared voting and dispositive power). The Estate of A. Alfred Taubman disclaims beneficial ownership in the Voting Stock owned by TVG and TG Partners beyond its pecuniary interest in those entities.
|
(7)
|
Consists of (A) 239 shares of Series B Preferred Stock owned by Gayle Taubman Kalisman, 22,311,442 shares of Series B Preferred Stock owned by TVG (shared voting and dispositive power), 5,000 shares of Series B Preferred Stock owned by TG Partners (shared voting and dispositive power) and 472,650 shares of Series B Preferred Stock owned by TFA (shared voting and dispositive power) (in aggregate, 87.4% of the Series B Preferred Stock), and (B) 186,837 shares of common stock owned by TVG (shared voting and dispositive power) and 100 shares of common stock owned by the A. Alfred Taubman Restated Revocable Trust (shared voting and dispositive power).
|
(8)
|
Robert Taubman, William Taubman and Gayle Taubman Kalisman are co-trustees of the A. Alfred Taubman Restated Revocable Trust and share voting and dispositive power over 100 shares of common stock owned by such trust. The Estate of A. Alfred Taubman, Robert Taubman, William Taubman and Gayle Taubman Kalisman may be deemed to beneficially own 186,837 shares of common stock owned by TVG, 5,000 shares of Series B Preferred Stock owned by TG Partners and 22,311,442 shares of Series B Preferred Stock owned by TVG. Robert Taubman, William Taubman and Gayle Taubman Kalisman may be deemed to beneficially own 472,650 shares of Series B Preferred Stock owned by TFA. Such amounts are disclosed in notes 3, 5, 6 and 7. Each person disclaims beneficial ownership in the Voting Stock owned by TVG, TFA, TG Partners and the A. Alfred Taubman Restated Revocable Trust beyond such person's pecuniary interest in such entities.
|
(9)
|
Pursuant to Schedule 13G/A filed with the SEC on February 11, 2020. Represents 14.4% of the common stock. The Vanguard Group, Inc. has sole power to vote 90,170 shares, shared power to vote 73,527 shares, sole power to dispose 8,747,324 shares and shared power to dispose 96,260 shares.
|
(10)
|
Pursuant to Schedule 13G/A filed with the SEC on February 4, 2020. Represents 11.2% of the common stock. This report includes holdings of various subsidiaries of the holding company. BlackRock, Inc. has sole power to vote 6,628,526 shares and sole power to dispose 6,889,162 shares.
|
(11)
|
Pursuant to a Schedule 13G/A filed with the SEC on February 14, 2020. Represents 9.3% of the common stock. This report includes holdings of various subsidiaries of the holding company. Cohen & Steers, Inc. has sole power to vote 5,188,824 shares and sole power to dispose 5,718,034 shares.
|
(12)
|
Pursuant to a Schedule 13G filed with the SEC on February 7, 2020. Represents 5.6% of the common stock. This report includes holdings of various subsidiaries of the holding company. FMR LLC has sole power to vote 302,133 shares and sole power to dispose 3,422,496 shares.
|
(13)
|
Consists of an aggregate of (A) 24,212,905 shares of Series B Preferred Stock beneficially owned (in aggregate, 92.8% of the Series B Preferred Stock), and (B) 1,828,967 shares of common stock beneficially owned and 90,700 shares of common stock subject to issuance under the Non-Employee Directors' Deferred Compensation Plan (in aggregate, 3.1% of the common stock).
|
Exhibit Number
|
|
Exhibit Description
|
|
Filed Herewith
|
*10.1
|
|
|
x
|
|
31.1
|
|
|
x
|
|
31.2
|
|
|
x
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104
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104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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*
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A management contract or compensatory plan or arrangement required to be filed.
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TAUBMAN CENTERS, INC.
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Date:
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April 29, 2020
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By: /s/ Simon J. Leopold
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Simon J. Leopold
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Executive Vice President, Chief Financial Officer, and Treasurer (Principal Financial Officer and Principal Accounting Officer)
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Effective Date
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January 1, 2020
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Sign On Bonus
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You will receive a one-time sign on bonus of HK$1,847,216 which will be payable concurrent with any annual bonus in March, 2020
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Base Salary
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Annual base salary of HK$3.9M to be paid in local currency in 12 equal installments.
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Salary Review
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Your salary will be reviewed annually according to TAM’s salary review schedule. Your first salary review will be scheduled for 2021.
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Target Bonus
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Annual target opportunity of HK$2.0M which will be subject to both the company and your individual achievements during the prior calendar year. The payment of the bonus is contingent upon your active employment at the time of bonus payout and subject to the circumstance that you are not under notice at such bonus payout time.
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Long Term Incentive Plan
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You will participate in The Taubman Company Long Term Incentive Plan (LTIP). You will have a target long-term incentive award opportunity of US$650,000 granted under the Taubman Company LLC 2018 Omnibus Long-Term Incentive Plan. Your LTIP award will consist of (a) Restricted Share Unit Award (“RSU Award”) and (b) an annual Performance Share Unit Award (“PSU Award”). The PSU Award may vest at a multiple of the units awarded (e.g., 0 to 3x) based on the achievement of certain performance metrics. The performance metrics of the PSU award and percentage allocation of the LTIP award value of your LTIP target (currently 60% PSU Award and 40% RSU Award) will be the same as the other Operating Committee members.
LTIP awards are granted by the company, generally on an annual basis in March, but are not guaranteed. LTIP awards are cliff-vested after three years from the date of the grant, and/or upon retirement per the terms of the Plan Document and applicable award agreements. You will be eligible for your first LTIP award in March, 2020.
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Personal Allowance
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You will receive a personal allowance of HK$1.8M paid in 12 equal installments for the purpose of funding housing, auto-related expenses, personal travel, and other personal expenses.
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Relocation Assistance
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You will be eligible for the following relocation benefits, if applicable, through the required coordination of Paragon:
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Tax assisted home sale assistance, including paid broker commissions
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Tax assisted temporary living in MI for up to two months, based on approval of accommodations/cost
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Tax assisted temporary living upon arrival to HK for up to two months, based on approval of accommodations/cost
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Tax assisted miscellaneous expense up to USD $7,500
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If the closing on the current home in Bloomfield Hills does not occur in December as anticipated, and thus the current mortgage remains in effect, Employee is protected against the responsibility of double payments for up to six months. As such, the Company would pay the lesser of the current mortgage and the Employee’s new rental in Hong Kong. The Company will reevaluate this benefit after six months if the current home does not sell within this timeframe. This potential allowance is not transferrable toward other elements of compensation
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One-way business class air transportation for your immediate family from Detroit to Hong Kong
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Pet transportation assistance of USD $500 per pet, capped at two pets
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Household goods shipment
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Air shipment - up to 850 lbs/170gcft
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Sea/Ocean shipment - (1) 40’ container and (1) 20’ container
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Working Hours
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Your standard office hours are 8:30 a.m. to 5:30 p.m. (Monday through Friday). Your position will not be eligible to receive any overtime compensation including overtime pay and/or compensatory time-off.
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Annual Leave
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30 days per year. Annual leave must be scheduled in advance with your supervisor.
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Performance Evaluation
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You will receive a performance evaluation at the end of each year according to the firm’s performance evaluation schedule.
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Medical Scheme
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You will be covered under TAM’s medical scheme effective your first day of employment. Dependent coverage is available to you at no additional charge of premium. The Company reserves the right to make changes on the current Medical Scheme including but not limited to its coverage.
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Provident Fund
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TAM will contribute to provident fund as per legislative requirement.
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Life Insurance
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You will be covered under TAM’s life insurance policy in effect from the completion of your probation period.
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Sick Leave
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We offer sick leave in accordance with TAM’s policy in force.
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Termination
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You will be eligible for benefits provided under the Taubman Severance Plan for Senior Level Management with the exception of the COBRA Premium Payment referenced in section 3(c)(ii) and 4(c)(ii). However, for termination in which the aforementioned section applies, you will be eligible for 3 months of continued medical coverage under the TAM medical scheme.
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Notice
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You agree to give TAM and TAM agrees to give you three (3) months notice or payment of base salary in lieu of notice.
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Taxation
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You will be responsible for the payment of all your income taxes on salary, bonus as well as all other income, benefits and allowances (if any) relating to your employment to the relevant tax authorities.
The Company will provide assistance with preparation of your US and HK tax filings for years 2019 thru 2022.
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Confidentiality
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Without the written approval of TAM, you shall not, during employment or any time thereafter, disclose to others or use, for your own benefit or otherwise, any information, knowledge or data you receive or develop during your employment which is confidential, including information contained in formulas, business processes, etc.
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Exclusivity
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You agree to devote full attention to one’s duties and will not, while employed by TAM, work for another employer without first obtaining the written notice of Employer.
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Miscellaneous
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Should there be any arbitration on the terms and conditions of employment or benefits to be provided, the Hong Kong jurisdiction will be observed
Should there be a significant shift in currency conversion between HKD and USD, the terms of this agreement will be revisited.
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/s/ Holly A. Kinnear
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Holly A. Kinnear
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SVP and CHRO
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The Taubman Company
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/s/ Paul Wright
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November 20, 2019
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Paul Wright
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Date
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2.
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Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
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Date:
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April 29, 2020
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/s/ Robert S. Taubman
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Robert S. Taubman
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Chairman of the Board of Directors, President, and Chief Executive Officer
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2.
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Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
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Date:
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April 29, 2020
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/s/ Simon J. Leopold
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Simon J. Leopold
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Executive Vice President, Chief Financial Officer, and Treasurer (Principal Financial Officer and Principal Accounting Officer)
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