Chris Lau
About Chris Lau
Chris Lau, age 43, is AMH’s Chief Financial Officer and Senior Executive Vice President (elevated in 2024; CFO since 2018), with prior roles across Finance including Vice President, Senior Vice President, and Executive Vice President from 2013 to 2018. He holds a B.S. in Accounting from San Diego State University and is a Certified Public Accountant (inactive) . Under his finance leadership, AMH delivered 2024 same-home core revenue growth of 5.3%, same-home core NOI growth of 8.1%, and Core FFO per share growth of 6.6% year-over-year, while raising the quarterly distribution 15% . The company’s 2022–2024 PSU cohort paid out at 185.4% of target, supported by 72nd percentile relative TSR and strong Core FFO growth across the period .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| AMH | CFO & Senior EVP | 2024–present | Elevated scope in succession plan; retention-focused RSU award to ensure stability |
| AMH | CFO | 2018–2024 | Led finance through development and portfolio expansion; drove Core FFO growth |
| AMH | VP/SVP/EVP – Finance | 2013–2018 | Built finance processes supporting scale in single-family rentals |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| National Rental Home Council | Member; Chair, Finance Committee | Since 2018 | Industry influence on standards and finance practices |
| Deloitte & Touche LLP | Senior Manager, Real Estate M&A Advisory and Audit | Prior to 2013 | Transaction and audit rigor in real estate, informing AMH capital allocation |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Base Salary ($) | $600,000 | $624,000 | $649,000 | $700,000 |
| Annual Cash Incentive Target (% of Salary) | 150% | 150% | 150% | 150% |
| All Other Compensation ($) | $12,200 | $13,276 | $13,894 | — |
Key observations:
- 2024 salary increased 4% vs. 2023 as part of succession planning; 2025 increased to $700,000 to reflect expanded responsibilities .
- AMH uses independent consultant Semler Brossy; no tax gross-ups; clawback policy; anti-hedging/anti-pledging rules .
Performance Compensation
2024 Annual Incentive Plan (AIP) outcome
| Component | Weighting | Target | Actual | Payout % | Payout ($) |
|---|---|---|---|---|---|
| Core FFO per share | 70% | $1.7450 | $1.7713 | 110.0% | — |
| Individual goals | 30% | 100.0% | 100.0% | 100.0% | — |
| Aggregate | — | — | — | 107.0% | $1,041,645 |
Notes:
- Individual goals emphasized succession execution, sustainability, team development, and personal development; Lau achieved 100% .
- AIP design unchanged in 2025 (70% Core FFO; 30% leadership goals) with Lau’s target maintained at 150% of salary .
PSUs design and 2022–2024 performance
| Measure | Threshold | Target | Maximum | Actual | PSU Payout % |
|---|---|---|---|---|---|
| Relative TSR (50%) | 25th percentile | 50th percentile | 75th percentile | 72nd percentile | 188.0% |
| Core FFO growth (50%) | 1.0% | 5.0% | 8.0% | 13.0%, 7.9%, 6.6% by year | 182.7% |
| Aggregate | — | — | — | — | 185.4% |
Equity Awards (grants and retention)
| Year | RSU Units Granted | PSU Units Granted | Retention RSUs | Grant Dates | Total Grant-Date Fair Value ($) |
|---|---|---|---|---|---|
| 2022 | 18,466 | 27,700 | — | 2/1/2022 | $1,936,400 (RSUs $720,000; PSUs $1,216,400) |
| 2023 | 14,483 | 65,170 | — | 2/7/2023 | $2,058,400 |
| 2024 | 23,031 | 51,821 | 143,968 | 1/3/2024; 2/21/2024 | $7,263,000 (incl. $5,000,000 retention RSUs) |
Design:
- Annual equity split 60% PSUs / 40% RSUs; PSUs based on 3-year performance of relative TSR (50%) vs. a 30-company REIT/residential peer group and absolute Core FFO per share growth (50%) .
- 2024 retention RSUs cliff vest five years from grant date, contingent on continued service, to support succession stability .
Outstanding Equity Awards and Vesting
| Grant Date | RSUs Unvested (#) | RSUs Market Value ($) | PSUs Unearned (#) | PSUs Market/Payout Value ($) | Notes |
|---|---|---|---|---|---|
| 2/1/2022 | 6,156 | $230,358 | 55,400 | $2,073,068 | RSUs vest ratably over 3 years; PSUs vest on performance |
| 2/7/2023 | 14,483 | $541,954 | 65,170 | $2,438,661 | |
| 1/3/2024 | 23,031 | $861,820 | 51,821 | $1,939,142 | |
| 2/21/2024 | 143,968 | $5,387,283 | — | — | Five-year cliff vest retention award |
Option awards (exercisable):
- 2,500 options; $19.40 strike; expire 2/22/2028 .
Stock vested and realized in 2024:
- RSUs vested: 48,019 shares; value realized $1,667,189 .
Equity Ownership & Alignment
| Metric | Value |
|---|---|
| Common shares beneficially owned | 79,064 |
| Common shares + OP units beneficially owned | 79,064 |
| Ownership as % of shares outstanding | Less than 1% |
| Vested options | 2,500 |
| Shares pledged as collateral | None disclosed for Lau; pledging prohibited for new pledges; Singelyn’s legacy pledge grandfathered |
| Executive ownership guideline | 3x prior-year base salary (unvested time-based RSUs count; PSUs/options do not) |
| Compliance status | All NEOs in compliance, including Lau |
| Anti-hedging / anti-pledging policy | Hedging prohibited; new pledges prohibited (no waivers permitted) |
Employment Terms
| Provision | Terms |
|---|---|
| Employment agreements | None; NEOs serve at Board’s pleasure |
| Severance (no CIC) | Lump sum of 100% of annual base salary + target bonus; COBRA up to 12 months (CEO higher) |
| Change-in-control (CIC) + qualifying termination | Lump sum of 200% of base salary + target bonus (CEO 300%); COBRA up to 24 months (CEO 36 months) |
| Equity treatment (CIC) | Double-trigger vesting for awards that are continued/assumed; if not continued: RSUs accelerate; options vest/exercisable pre-close; PSUs vest at target or based on actual performance depending on performance period elapsed |
| Retirement policy | Qualifying retirement allows continued vesting per original schedules; requires standard non-compete/non-solicit execution |
Potential payments (as of 12/31/2024; if event occurred on that date):
| Scenario | Amount ($) |
|---|---|
| Qualifying termination (no CIC) | $1,655,600 |
| Qualifying termination following CIC | $13,881,328 |
| CIC without termination (awards not continued) | $10,570,028 |
| Death or disability | $10,570,028 |
Clawback policy:
- Mandatory recovery of excess incentive compensation upon financial restatement; three-year lookback; applies to cash and equity; administered by Human Capital and Compensation Committee .
Compensation Governance and Benchmarking
- Compensation consultant: Semler Brossy (independent; no conflicts) .
- Committee membership and cadence: Human Capital and Compensation Committee (Benham—Chair, Webb, Willoughby, Zaist); 5 meetings in 2024 .
- Benchmarking: Median (50th percentile) used as a reference starting point; peer group includes diversified REITs and residential REITs (Invitation Homes, Equity Residential, Tricon, UDR, etc.) .
Say-on-Pay & Shareholder Feedback
| Year | Approval % |
|---|---|
| 2022 | 94.3% |
| 2023 | 96.9% |
| 2024 | 97% |
AMH reported extensive investor engagement and made no changes due to high support levels .
Compensation Structure Analysis
- Mix shift: Lau’s stock awards rose from $2,058,400 in 2023 to $7,263,000 in 2024 driven by a one-time $5,000,000 five-year cliff RSU retention grant; annual grant maintained 60% PSUs / 40% RSUs, reinforcing at-risk pay and long-term alignment .
- AIP structure stability: Targets and weights unchanged for Lau (150% target; 70% Core FFO / 30% leadership), signaling consistency in pay-for-performance .
- Governance safeguards: Double-trigger equity for CIC; robust clawback; anti-hedging/anti-pledging; no tax gross-ups; no underwater option repricing .
Risk Indicators & Red Flags
- Retention pressure mitigated: Five-year cliff vest RSU (143,968 units) creates strong retention tie over 2024–2029 .
- Insider selling pressure: No option exercises in 2024; RSU vesting occurred, typically with tax withholding; anti-hedging and new pledging prohibitions reduce misalignment risk .
- CIC economics: Potential payout under CIC + termination of ~$13.9M (as of 12/31/2024) is sizable; however equity remains double-triggered where awards are continued/assumed .
Investment Implications
- Alignment: High at-risk equity mix, PSUs tied to TSR and Core FFO, and strict anti-hedging/anti-pledging policies support shareholder alignment; Lau meets ownership guidelines (≥3× salary) .
- Retention: The 5-year cliff RSU materially lowers near-term attrition risk and stabilizes the finance leadership through the CEO transition period .
- Performance linkage: AIP and PSU structures are directly linked to Core FFO and TSR, with demonstrated outperformance (2022–2024 PSU payout at 185.4%), indicating pay-for-performance integrity .
- Watch items: Monitor changes to CIC terms, incremental retention grants, and any future 10b5‑1 plan sales or Form 4 activity for selling pressure; current 2024 option activity was zero and hedging/pledging are prohibited .