Danny van der Reis
About Danny van der Reis
Danny van der Reis, age 57, is Executive Vice President — Servicing and Asset Management at Arbor Realty Trust (ABR), responsible for servicing, asset management, loan restructurings and workouts; he joined Arbor in 2019 after more than two decades in CMBS special servicing focused on complex workouts and consent matters . During his tenure period, Arbor’s cumulative TSR from a $100 investment at 12/31/2019 reached $164 at 12/31/2024 versus $80 for the FTSE Nareit Mortgage REITs peer group; 2024 net income and distributable earnings were $283.9 million and $358.0 million, respectively, as disclosed in pay-versus-performance tables . Arbor designates distributable earnings as its company-selected metric for pay-versus-performance disclosure; however, for non-CEO NEOs like van der Reis, the Compensation Committee did not set formulaic performance goals in 2024 and used judgment tied to contribution and responsibilities .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Premier CMBS special servicer (not named) | Special servicing executive focused on loan restructuring, workouts, and performing loan consents | Over two decades (pre-2019) | Worked out/restructured complex CMBS loans; led processing of performing loan consents including credit, underwriting, and sale/assumption structuring |
External Roles
No external directorships or external roles were disclosed for van der Reis in the latest proxy.
Fixed Compensation
| Year | Base Salary ($) | All Other Compensation ($) | Notes |
|---|---|---|---|
| 2024 | 783,334 | 6,870 (401k match and life insurance) | Participated in deferred comp plan (see below) |
| 2023 | 600,000 | 6,600 | First year as NEO disclosed was 2023 |
Performance Compensation
- Compensation framework for non-CEO NEOs in 2024: no pre-set formulaic performance metrics; the Compensation Committee determined amounts based on individual contribution and responsibility within a pay-for-performance philosophy .
| Component | Metric(s) | Weighting | Target | Actual/Payout | Vesting |
|---|---|---|---|---|---|
| Annual Cash Incentive (2024) | Discretionary (no disclosed goals for NEOs other than CEO) | N/D | N/D | $1,200,000 paid for managing servicing and asset management | Cash (paid for 2024 service) |
| Restricted Stock (granted 3/14/2024 for 2023 performance) | Time-based RS | N/A | N/A | 46,838 shares; grant-date fair value $593,906 | Company uses multi-year vesting for NEO awards; cash dividends paid on unvested shares (see note) |
| Restricted Stock (SCT “Stock Awards” for 2024) | Time-based RS granted in 2025 for 2024 performance | N/A | N/A | $453,648 grant-date fair value (SCT) | 2025 grants to NEOs (ex-CEO) vest 1/3 at grant, 1/3 on each of the first and second anniversaries |
Notes:
- Dividends: Cash dividends are paid on all outstanding restricted stock at the common rate ($1.72/share in 2024) .
- Options: Company has not granted options to date; may consider in future with at-market strikes and multi-year vesting .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 187,895 common shares |
| Unvested RS (12/31/2024) | 37,015 shares (market value $512,658 at $13.85) |
| Vesting schedule | 21,401 shares vested in March 2025; 15,614 vest in March 2026 |
| Dividends on unvested RS | Receives dividends at common rate while unvested |
| Pledging/hedging | Prohibited for covered employees (includes NEOs) |
| Ownership guidelines | As of March 6, 2025, NEOs must hold company stock equal to 5x base salary by 12/31/2027; compliance measured at year-end using specified valuation method |
| Deferred comp elections | Deferred $213,333 in 2024; withdrew $110,614 in 2024 |
| Perquisites tied to alignment | $250k basic term life insurance; additional $250k life insurance for deferred comp participants (applicable to van der Reis) |
Employment Terms
- Employment status: At-will. NEOs (other than CEO) do not have employment, severance, or change-in-control (CoC) cash agreements .
- CoC equity treatment: Restricted stock fully vests upon a change in control per award agreements; as of 12/31/2024, van der Reis’s unvested RS market value was $512,658 (at $13.85) .
- Clawback: Executive officer clawback policy to recoup erroneously awarded incentive compensation upon accounting restatement (NYSE-compliant) .
- Insider trading policy: Prohibits trading in derivatives, pledging, and hedging of company stock by covered persons .
Multi‑Year Compensation Summary (NEO disclosure window)
| Year | Salary ($) | Cash Bonus ($) | Stock Awards ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|
| 2024 | 783,334 | 1,200,000 | 453,648 | 6,870 | 2,443,852 |
| 2023 | 600,000 | 1,100,000 | 593,906 | 6,600 | 2,300,506 |
Outstanding and Vested Equity Detail
| Category | 2024 Quantity/Value |
|---|---|
| Unvested RS at 12/31/2024 | 37,015 shares; $512,658 at $13.85 |
| 2024 vested RS | 26,136 shares; $335,250 value at vest |
| 3/14/2024 grant (for 2023 performance) | 46,838 shares; $593,906 grant-date fair value |
Performance & Track Record
- Role scope: Leads servicing and asset management, including restructurings and workouts; expands servicing/asset management capabilities .
- Company performance context during his tenure window: Cumulative TSR grew to $164 by 12/31/2024 from a $100 base at 12/31/2019 (peer $80); 2024 net income $283.9 million and distributable earnings $358.0 million per pay-versus-performance disclosure .
Compensation Structure Analysis
- Cash vs equity mix: 2024 total comp reflected meaningful cash incentive ($1.2 million) alongside time-based RS awards, consistent with the Committee’s emphasis on at-risk pay with discretion for NEOs other than the CEO .
- Shift to RS over options: Company primarily uses restricted stock; options not granted to date, signaling lower-risk equity incentives vs options .
- Ownership alignment levers: New officer stock ownership guidelines (5x salary for NEOs) by 12/31/2027 enhance long-term alignment; dividends on unvested RS create ongoing cash linkage to shareholder returns; pledging/hedging prohibited .
- Formulaic pay metrics: For 2024, no disclosed pre-set performance metrics for non-CEO NEOs; awards based on contributions and responsibility may reduce external transparency of pay-for-performance linkage .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited, reducing misalignment and forced-selling risk .
- CoC acceleration: Full acceleration of restricted stock upon a change in control could concentrate payout incentives around transaction events (common REIT practice) .
- Severance: No company cash severance obligations for van der Reis (other than equity acceleration via award terms), limiting shareholder liability on termination .
- Clawback: Policy in place for accounting restatements .
Investment Implications
- Alignment: Beneficial ownership (187,895 shares) and multi-year RS vesting through 2026 create continued alignment and moderate vesting-related supply; prohibitions on pledging/hedging reduce overhang risks .
- Retention and incentives: Absence of individual employment/severance agreements suggests lower contingent liabilities but places greater emphasis on ongoing incentive awards and new stock ownership guidelines (5x salary by 12/31/2027) to support retention .
- Pay-for-performance transparency: Discretionary annual incentives for non-CEO NEOs (no preset metrics disclosed) warrant monitoring, though the company emphasizes at-risk pay and board oversight; watch for future disclosures on metric calibration and equity grant sizing vs servicing/asset management outcomes .