Simon Property hiked CEO’s pay 34.7 percent last year

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Simon Property Group Inc. Chairman and CEO David Simon got a 34.7 percent raise last year, bringing his total compensation
to $4.6 million, according to the company’s newly filed proxy statement. The rest of his management team’s pay
stayed flat or declined.

Simon, 48, earned $1.2 million more than in 2008. He has been CEO of the nation’s largest shopping mall owner since
1995 and its chairman since 2007. Last year Simon Property’s $3.775 billion in revenue was slightly less than the $3.783
billion reported in 2008. The company’s profit declined 35 percent in 2009, to $387.3 million from $599.5 million the
previous year.

But investors have shown confidence in Simon Property’s prospects. The company’s shares soared 60 percent last
year, to $79.12. Simon Property’s stock price has rallied further in 2010, trading Friday morning at $85.63.

Simon Property awarded Simon a $3 million bonus—the source of his raise—in addition to his $1 million salary.
Most of the rest of his compensation was a restricted stock grant worth $578,677.

Pay for other top executives:

—Chief Operating Officer Richard S. Sokolov earned $2.6 million, down 9.7 percent.

—General Counsel James M. Barkley earned $1.7 million, up 1.3 percent.

—Chief Financial Officer Stephen E. Sterrett earned $1.6 million, up 0.7 percent.

—Executive Vice President John Rulli earned $1.3 million. This was his first year on the list of highest-paid executives.

IBJ uses the Associated Press formula to calculate executive pay. It gauges the value of compensation such as stock
and option grants at the time they are awarded, not the time they are cashed in.

Simon Property spent $1.5 million last year on combined board compensation for its nine independent directors, 13 percent
less than the $1.7 million it spent in 2008.
 

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