Joseph Hakman
About Joseph Hakman
Joseph Hakman, age 54, is Co-Chief Operating Officer (since July 2020) and Chief Strategic Transactions Officer (since June 2019) at Alexandria Real Estate Equities (ARE), with 18 years at the company. He oversees property acquisitions and dispositions, due diligence, financial underwriting, and secured debt placement, contributing to strategy and business plans per asset. Prior roles included Senior Vice President and Vice President of Strategic Transactions at ARE; prior to ARE, he worked at Colliers International (commercial real estate finance), PwC (senior consultant leading acquisition due diligence and loan securitization), and American Realty Advisors (asset management). He holds a BS in Business Administration from Pepperdine University . Company performance context during his tenure includes 2024 FFO per share growth of 5.6%, NOI up 8.9%, and Adjusted EBITDA margin of 72%, with negative TSR for 2021–2024 amid sector headwinds .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Colliers International | Commercial Real Estate Finance Group (financial/project feasibility; investment sales; transaction structuring) | Not disclosed | Supported analyses and structuring for CRE transactions |
| PwC | Senior Consultant (led due diligence for acquisitions and loan portfolio securitizations) | Not disclosed | Headed team for acquisition due diligence and securitizations |
| American Realty Advisors | Asset Management (office, industrial, land assets nationally) | Not disclosed | Managed national portfolio asset performance |
External Roles
None disclosed for Hakman (no public board or committee roles noted) .
Fixed Compensation
No individual base salary, target bonus %, or actual bonus details for Hakman are disclosed in the 2025 proxy (he is not a Named Executive Officer in the Summary Compensation Table) . For context on ARE’s program design (applies to NEOs):
- Base salary is intended to be a relatively small portion of total compensation; annual cash incentives are performance-based; at least 50% of total annual compensation is “at risk” via equity for alignment with stockholders .
- Other NEO annual cash incentive awards are discretionary with a maximum of 300% of base salary; 2024 awards were below this cap .
Performance Compensation
ARE’s performance equity programs (disclosed for NEOs and top executives) provide insight into compensation alignment and vesting mechanics relevant to senior executives:
Long-Term Performance Program for NEOs (2024 awards; three-year performance period)
| Metric | Weighting | Target | Actual | Payout Basis | Vesting/Holding |
|---|---|---|---|---|---|
| FFO Growth Rate (YoY 2024) | 50% | 4.0% (threshold 3.0%; max ≥5.0%) | 5.6% | 200% of target from FFO + Net Debt/EBITDA combined, subject to 150% cap and TSR modifier | Vests after performance period ending 12/31/2026; 1-year post-vesting hold |
| Net Debt to Adjusted EBITDA (2024) | 50% | ≤6.05x (threshold 6.5x; max ≤5.6x) | 5.2x | 200% of target from FFO + Net Debt/EBITDA combined, subject to 150% cap and TSR modifier | Vests after performance period ending 12/31/2026; 1-year post-vesting hold |
| Relative TSR Ranking vs FTSE NAREIT Equity Health Care Index | Modifier ±50% | Median no change; ≥75th percentile +50%; ≤25th percentile −50% | Determined at period end | Adjusts outcome; capped at 150% | Vests after performance period; 1-year post-vesting hold |
Notes: The company disclosed significant forfeitures of earlier performance awards based on absolute/relative TSR (2021, 2022 awards), demonstrating enforcement of performance hurdles .
LTI Grants for Executive Chairman/CEO (structure reference)
- Performance-based LTI: 50% weighting each to Net Debt/EBITDA and NOI growth; Forward FFO multiple ranking modifier; payout capped at 150%; vests after three-year period; 1-year holding .
- Time-based LTI: Four-year vesting with a 1-year post-vesting holding period .
Equity Ownership & Alignment
- Stock ownership guidelines: CEO and Executive Chairman 6x salary; other executive officers 3x salary; NEOs must hold 50% of net after-tax shares until requirements met. All senior officers reported to be in compliance; unearned performance shares do not count .
- Anti-hedging and anti-pledging: Prohibits hedging, short sales, derivatives; pledging prohibited unless sufficient immediately available collateral exists to prevent forced sales during blackout periods .
- One-year post-vesting holding period: Applies to substantially all equity awards granted to NEOs in 2024–2025; dividends on most unvested time-based awards granted in Apr–Dec 2024 and expected in 2025 are forfeitable unless vesting occurs .
- Equity plan structure: No stock options or SARs outstanding or available under the Amended 1997 Incentive Plan; minimum vesting of ≥3-year pro rata for service-based, ≥1-year for performance-based; double-trigger change-of-control vesting and responsible acceleration mechanics .
Security ownership table does not itemize Hakman’s beneficial ownership; NEOs/directors as a group (22 persons) held 1,858,984 shares (1.08%) as of March 14, 2025 .
Employment Terms
Specific employment agreement terms and severance/change-in-control economics for Hakman are not disclosed. Reference terms disclosed for certain executives (Moglia, Binda, Ryan, Kass, Diamond) include:
- Severance without cause or for good reason (no CIC): Generally 1x base salary + prior year cash bonus; COBRA premiums or equivalent taxable payments for 12 months; accelerated vesting of unvested equity; prorated fully vested stock grants; additional vested stock grant based on prior awards .
- Upon or within two years after a Change in Control (double trigger): Multiple applied to base salary + prior year cash bonus (2.0x for Moglia/Ryan; 1.5x for Binda/Kass/Diamond), plus equity acceleration as specified; no tax gross-ups .
- Potential payments table quantifies scenarios for named executives; no entries for Hakman .
Equity plan change-of-control treatment (plan-level): If awards are not assumed/substituted, full vesting at greater of target or actual performance; otherwise, involuntary termination within two years post-CIC results in full vesting with performance at greater of target or actual .
Investment Implications
- Alignment signals: Strong ownership requirements (3x salary for executive officers), 1-year post-vesting holding, anti-hedging/anti-pledging, clawback policies, and absence of options/SARs collectively reduce short-term selling pressure and encourage long-term equity alignment for senior executives, including Hakman .
- Performance rigor: Documented forfeitures of prior TSR-based awards and capped payouts under current metrics indicate discipline in pay-for-performance, limiting windfalls amid sector headwinds; this can moderate realized comp unless performance improves .
- Retention: Four-year time-based vesting and multi-year performance cycles with holding requirements provide retention hooks; lack of disclosed personal severance terms for Hakman reduces visibility into individualized retention economics versus peers .
- Trading signals: For senior officers, forfeitable dividends and post-vesting holds temper immediate liquidity; anti-pledging reduces forced sale risk. No current evidence of Hakman Form 144 sales or 8‑K 5.02 events; specific insider trading activity for Hakman not found in available filings .
Say-on-pay support remains robust (86% “FOR” in 2024; 5-year avg ~91%; 10-year avg ~88%), suggesting shareholder endorsement of the compensation framework’s alignment features .