Lawrence J. Diamond
Co-Chief Operating Officer and Regional Market Director – Maryland at ALEXANDRIA REAL ESTATE EQUITIES
Executive
About Lawrence J. Diamond
Lawrence J. Diamond, age 66, is Co-Chief Operating Officer and Regional Market Director – Maryland at Alexandria Real Estate Equities, Inc. (ARE), with 26 years at the company and deep operating expertise across property management, leasing, construction, and market execution . He holds a B.S. in Accounting/Business Administration from Frostburg State University and has previously served on Maryland’s Life Sciences Advisory Board . Company performance context: ARE’s pay-versus-performance disclosure shows a value of $71.6 for a fixed $100 TSR investment measured from 12/31/2019 to 12/31/2024, and emphasizes FFO per share – diluted, as adjusted, as a key measure used in executive pay design .
Company financial performance (context for incentives):
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($USD) | $2,576,040,000 * | $2,842,456,000 * | $3,049,706,000 * |
| EBITDA ($USD) | $1,554,830,000* | $1,734,814,000* | $1,960,150,000* |
| Cash from Operations ($USD) | $1,294,321,000 * | $1,630,550,000 * | $1,504,524,000 * |
*Values retrieved from S&P Global.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ARE | Assistant Vice President – Asset Services | Nov 1998–Dec 1999 | Early operating leadership in asset services |
| ARE | Vice President – Asset Services, Mid-Atlantic | Jan 2000–Jun 2005 | Scaled regional operations and processes |
| ARE | Regional Market Director – Maryland | Jul 2005–present | Full P&L and execution for Maryland cluster |
| ARE | Co-Chief Operating Officer | Apr 2018–present | Enterprise operating oversight and standards |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Maryland Life Sciences Advisory Board | Member (previously served) | Not disclosed | Regional industry engagement |
Fixed Compensation
| Component | 2024 |
|---|---|
| Base Salary | $595,000 |
| Annual Cash Incentive (actual) | $575,000 |
| All Other Compensation (profit-sharing and insurance) | $51,528 |
Retirement and deferred compensation:
| Program | 2024 Amount |
|---|---|
| Pension Plan – Present Value of Accumulated Benefits | $417,664 |
| Nonqualified Deferred Compensation – Aggregate Balance | $50,882 |
| Deferred Comp – Above-market/preferential earnings (2024) | $7,038 |
Notes:
- ARE terminated its cash balance Pension Plan effective 12/31/2024; distributions are expected in 2025 subject to elections .
Perquisites (included in “All Other Compensation”):
- Profit-sharing plan contribution: $46,000
- Insurance premiums: $5,528
Performance Compensation
Annual cash incentive (Other NEO structure):
- Discretionary design with holistic assessment; maximum 300% of base salary; 2024 payout for Diamond: $575,000 .
- Goals for Diamond included: maintaining NOI margin, rental rate growth on renewals/re-leasing, solid occupancy, high pre-leasing/leasing of value-creation projects; the Compensation Committee found strong execution against these goals .
Long-term performance-based equity awards (2024 Performance Plan Equity Award):
| Item | Detail |
|---|---|
| Metrics | Net Debt to Adjusted EBITDA Ratio; FFO Growth Rate; Relative TSR Ranking |
| Target Shares | 4,720 |
| Maximum Shares | 7,080 (150% of target) |
| Vesting | Performance over 3 years ending 12/31/2026 |
| Holding Period | 1-year post-vesting |
| Grant Date Fair Value | $769,242 |
Long-term service-based equity awards (granted for 2023 performance, awarded 12/31/2024):
| Item | Detail |
|---|---|
| Shares Granted | 16,146 |
| Vesting | Time-based through 12/31/2028 |
| Holding Period | 1-year post-vesting |
| Dividend Feature | Forfeitable dividends; accrued and paid only on vest |
| Grant Date Fair Value | $1,417,619 |
Company-wide compensation guardrails impacting Diamond:
- One-year post-vesting holding period on substantially all equity awards for NEOs .
- Double-trigger change-in-control provisions on equity .
- Robust clawback policy per NYSE/SEC rules; prior policy covers misconduct-driven restatements pre-10/2/2023 .
Equity Ownership & Alignment
Beneficial ownership:
| Measure | Value |
|---|---|
| Shares Beneficially Owned | 140,164 |
| Ownership as % of Shares Outstanding | ~0.081% (140,164 / 172,989,043) |
Unvested equity and scheduled vesting:
| Category | Shares |
|---|---|
| Unvested time-based shares | 47,935 |
| Unearned performance-based shares (at max) | 11,110 |
| Total unvested | 59,045 |
Year-by-year scheduled vesting (time-based and performance-based combined):
| Year | Shares Scheduled to Vest |
|---|---|
| 2025 | 22,603 |
| 2026 | 22,317 |
| 2027 | 10,088 |
| 2028 | 4,037 |
Options:
- ARE has not issued options since 2002; no options outstanding or exercises; none for Diamond .
Ownership and trading policies:
- Stock ownership guideline: other executive officers must hold shares equal to 3x base salary; all senior officers are currently in compliance; NEOs must hold 50% of net after-tax shares until compliance is met .
- Anti-hedging policy prohibits short sales, derivatives, exchange funds, etc.; anti-pledging policy generally prohibits pledging except when sufficient liquidity exists to prevent forced sale during closed windows .
- One-year post-vesting holding period broadly applied to NEO awards .
Employment Terms
Core agreement terms (Other NEO agreements apply to Diamond):
- Employment is at will; annual base salary increases at least by local CPI (cost-of-living adjustment) .
- If terminated without Cause or resigns for Good Reason (no change-in-control): severance equals one year of base salary plus a cash incentive bonus equal to the prior year’s bonus; COBRA premium support for 12 months; unvested equity vests; prorated and additional vested stock grants per formula .
- If terminated without Cause or resigns for Good Reason upon or within two years post-Change in Control: severance multiple of 1.5x for Diamond (base salary + prior year bonus); equity acceleration and vested stock grants per formula .
Illustrative potential payouts (as of 12/31/2024):
| Scenario | Cash Severance | Restricted Stock Grants | Equity Acceleration | Medical/Dental Continuation | Accrued Vacation | Total |
|---|---|---|---|---|---|---|
| Without Cause/for Good Reason (CIC) | $1,717,500 | $4,714,214 | $5,050,391 | $39,428 | $93,472 | $11,615,005 |
| Without Cause/for Good Reason (no CIC) | $1,145,000 | $4,714,214 | $4,919,349 | $39,428 | $93,472 | $10,911,463 |
| Death or Disability | $1,145,000 | $4,714,214 | $4,919,349 | $39,428 | $93,472 | $10,911,463 |
Clawback:
- Dodd-Frank compliant clawback for erroneously awarded incentive comp due to material noncompliance; prior misconduct-based policy applies for pre-10/2/2023 awards .
Performance & Track Record (Maryland Market, 2024)
| Metric | Result |
|---|---|
| Market share of ARE’s annual rental revenue | 7% (Maryland) |
| Occupancy (operating asset base, Maryland) | 95.7% as of 12/31/2024 |
| RSF leased (Maryland) | 432,778 RSF (132,678 RSF new/developed/redeveloped; 300,100 RSF renewals/re-leasing) |
| Rental rate increases (cash basis) | 25.3% (new/developed/previously vacant) and 3.7% (renewals/re-leasing) |
| Value-creation deliveries | 514,036 RSF delivered across three projects at Shady Grove; two assets 100% occupied |
| Tenant quality | 53% of Maryland annual rental revenue from investment-grade or publicly traded large caps |
| Company NOI margins (context) | Same property NOI margin 68%; consolidated NOI margin 71% (Diamond contributed via Maryland performance) |
Equity Ownership & Alignment (Policies Recap)
- Ownership guidelines: executive officers at 3x base salary; NEO holding requirement of 50% net shares until compliant; all senior officers currently in compliance .
- No hedging; pledging restricted; post-vesting holding periods in place; broad double-trigger equity protection in CIC .
Investment Implications
- Alignment: Diamond’s meaningful beneficial ownership (140,164 shares; ~0.081% of outstanding) and policy-mandated holding periods and anti-hedging/anti-pledging reduce short-term selling pressure, supporting alignment with shareholders .
- Vesting overhang: 59,045 unvested shares with 22,603 vesting in 2025, but one-year post-vesting holding requirements on NEO awards mitigate immediate liquidity events .
- Pay-for-performance: His 2024 incentive structure ties equity to Net Debt/Adjusted EBITDA, FFO growth, and relative TSR; cash incentives are discretionary but tied to rigorous operating goals (occupancy, leasing, rate growth), with demonstrated execution in Maryland .
- Retention and severance economics: The 1.5x CIC multiple and equity acceleration provide retention value; COBRA and formulaic vested stock grants offer additional protection, but double-trigger mitigates windfall risk .
Values retrieved from S&P Global (financials table).