Nelson G. Knight
About Nelson G. Knight
Nelson G. Knight is President, Real Estate and Investments at Apple Hospitality REIT, Inc. (APLE), a role he has held since April 1, 2020; he previously served as Executive Vice President and Chief Investment Officer from May 2014 and joined the Apple REIT Companies in 2005 . He holds an MBA from Texas Christian University and a BA, cum laude, in History with a Business minor from Southern Virginia University; he is the son of Executive Chairman Glade M. Knight and brother of CEO Justin G. Knight . APLE’s executive pay mix is highly performance-oriented (78% of 2024 target compensation is incentive-based) and requires at least 55th percentile relative TSR to hit target; 2024 incentive results averaged 109.3% of target, indicating execution ahead of plan .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Apple Hospitality REIT, Inc. | President, Real Estate & Investments | 2020–present | Leads capital deployment strategies; oversees capital reinvestment team |
| Apple Hospitality REIT, Inc. | EVP & Chief Investment Officer | 2014–2020 | Directed investment strategy; senior management leadership |
| Apple REIT Companies | Senior management roles | 2005–2014 | Progressively senior roles driving asset and investment capabilities |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Hilton | Product Advisory Council member | — | Brand/product input; industry relationships |
| AC Hotels by Marriott | Franchise Advisory Council member | — | Franchise strategy and performance insights |
| Hunter Hotel Investment Conference | Advisory Board member | — | Industry thought leadership |
| Southern Virginia University | Board of Trustees | — | Governance; community ties |
| TCU Neeley School – Center for Real Estate | Board of Advisors Executive Council | — | Real estate academic/industry bridge |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | 520,000 | 535,600 |
| All Other Compensation ($) | 186,622 | 143,386 |
| Estimated Dividends Included in All Other ($) | — | 104,570 |
Notes: “All Other Compensation” includes company-paid portions of health, life and disability insurance, parking, 401(k) match, and estimated dividends on share awards .
Performance Compensation
2024 Incentive Design
- 50% based on operational goals; 50% based on shareholder return metrics; relative TSR metrics require ≥55th percentile for target payout .
- Operational metrics (75% of operational target; equally weighted at 15% each): Comparable Hotels RevPAR growth, Comparable Hotels Adjusted Hotel EBITDA margin, Adjusted EBITDAre, MFFO per share, and 2024 capital expenditures; remaining 25% based on capital structure management and proprietary market forecasting buildout .
- 2024 performance averaged 109.3% of target across metrics .
2024 Target vs Actual Awards (Determined Feb 2025; equity granted Mar 2025)
| Component | Target ($) | Actual ($) | Vesting |
|---|---|---|---|
| Cash Incentive | 468,650 | 549,319 | Cash paid Mar 2025 |
| Equity Incentive | 1,405,950 | 1,499,204 | 2/3 vested at grant; 1/3 vests Dec 2025 |
| Total Incentive | 1,874,600 | 2,048,523 | As above |
Equity Award Components (Grant-Date Fair Value)
| Year | Market-Based Incentive ($) | Company Performance-Based Incentive ($) | Other Share Awards ($) | Total Share Awards ($) |
|---|---|---|---|---|
| 2022 | 1,210,661 | 409,063 | — | 1,619,724 |
| 2023 | 1,315,405 | 455,000 | — | 1,770,405 |
| 2024 | 1,010,503 | 468,650 | — | 1,479,153 |
Realized Pay
| Component | 2023 ($) | 2024 ($) |
|---|---|---|
| Salary | 520,000 | 535,600 |
| Share Awards (Realized) | 2,427,630 | 1,499,204 |
| Non-Equity Incentive | 659,466 | 549,319 |
| All Other Compensation | 186,622 | 143,386 |
| Total Realized Compensation | 3,793,718 | 2,727,509 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 1,289,986 Common Shares; includes restricted shares subject to time vesting |
| Ownership % of Class | <1% of 238,858,327 shares outstanding (asterisk in proxy denotes less than one percent) |
| Indirect Holdings | Includes 304,504 shares in a family limited partnership and 37,601 shares in irrevocable trusts for his children; he disclaims beneficial ownership of partnership shares except to extent of pecuniary interest; shares voting/dispositive control with Justin G. Knight |
| Ownership Guidelines | Executives must hold ≥3x annual base salary; all current executives have met or are within the transition period |
| Hedging & Pledging Policy | Hedging prohibited; pledging limited to ≤50% of individually held shares; margin accounts prohibited |
| Vested vs Unvested | Beneficial ownership includes restricted shares subject to time vesting; specific breakdown not disclosed |
Employment Terms
| Provision | Key Terms |
|---|---|
| Executive Change of Control Severance Plan | Double-trigger: if terminated without Cause or for Good Reason within one year of a Change in Control, lump sum equals unpaid salary/PTO + prorated annual bonus + 3.0x (Annual Bonus + Annual Base Salary); accelerated vesting of stock awards; welfare benefits continuation; COBRA premiums for up to 12 months; life insurance conversion premiums for 12 months; up to $15,000 outplacement; subject to release of claims |
| 2014/2024 Omnibus Incentive Plans (CoC treatment) | If awards are not assumed/continued: restricted stock/units vest immediately before CoC; options/SARs become exercisable or are cashed out; performance awards deemed based on actual to date if ≥50% of period lapsed, otherwise at target |
| Tax Gross-Ups | None; no NEO is entitled to tax gross-up payments |
| Clawback (Compensation Recovery Policy) | Mandatory recovery of incentive-based compensation for three years preceding a required accounting restatement if the restated measure results in a lower incentive award |
Estimated Payments as of December 31, 2024
| Scenario | Cash Severance ($) | Acceleration of Equity Awards ($) | Acceleration of Cash Awards ($) |
|---|---|---|---|
| Termination without Cause / for Good Reason within 1 year of CoC | 13,106,021 | 1,603,757 | — |
| Change in Control (No Termination) | — | 1,603,757 | 549,319 |
Investment Implications
- Strong pay-for-performance alignment: Executive pay structure emphasizes performance (78% incentive-based), with stringent relative TSR targets and diversified operational metrics, supporting alignment with shareholder outcomes .
- Execution ahead of plan: 2024 incentive achievement averaged 109.3% of target, and Knight’s actual cash and equity awards exceeded targets, signaling operational and capital deployment execution .
- Near-term vesting-related supply: Two-thirds of 2024 equity vested immediately in March 2025 and one-third vests in December 2025, creating potential windows for insider selling pressure subject to policy and trading windows .
- Change-in-control economics: A 3x salary+bonus cash multiple plus full acceleration of equity under certain CoC scenarios provides significant retention value but may increase costs in strategic transactions; double-trigger structure mitigates immediate payouts absent termination .
- Governance considerations: Familial ties (son of Executive Chairman; brother of CEO) and shared control over certain family-held shares warrant monitoring for related-party optics; however, formal ownership guidelines and anti-hedging/margin policies reduce misalignment risks .