Erik Johnson
About Erik Johnson
Erik L. Johnson is President and Chief Executive Officer of American Realty Investors, Inc. (ARL) since May 28, 2024 (age 57 in 2025), after serving as Executive Vice President and Chief Financial Officer from August 17, 2020 to May 28, 2024; he is a Certified Public Accountant with prior roles at Macerich, North American Scientific, Launch Media, and PricewaterhouseCoopers . ARL’s executives are employed and compensated by Pillar Income Asset Management, Inc. (Pillar), the external advisor, and do not receive direct remuneration from ARL; none hold options granted by the Company . Company performance during Erik’s CFO/CEO tenure shows revenues of $34.1M in FY2022, $47.0M in FY2023, and $44.8M in FY2024, with net income of $373.3M in FY2022, $4.0M in FY2023, and a loss of $14.7M in FY2024, reflecting volatility largely tied to asset and advisory dynamics .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| The Macerich Company (NYSE: MAC) | Vice President, Financial Reporting | 2005–Jun 2020 | Led public company reporting for major retail real estate owner/developer . |
| North American Scientific, Inc. (NASDAQ: NASI) | Controller/Chief Accounting Officer | 2001–2005 | Oversaw accounting at medical device company . |
| Launch Media, Inc. (NASDAQ: LAUN) | Controller | 2000–2001 | Managed financial controls at digital media firm . |
| PricewaterhouseCoopers | Auditor (early career) | — | Audit grounding; CPA credential . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Pillar Income Asset Management, Inc. (ARL’s advisor) | President and Chief Executive Officer | 2024–present | Director of Pillar; Pillar serves as ARL’s contractual advisor and cash manager . |
Fixed Compensation
- ARL pays no compensation to its executive officers; all executive compensation is paid by Pillar. Pillar does not allocate cash compensation among advised entities; executives hold no options granted by ARL .
| Component | ARL-Paid Amount | Notes |
|---|---|---|
| Base salary | $0 | Executives are compensated by Pillar, not ARL . |
| Target/Actual bonus | $0 | No ARL-paid bonuses to executives . |
| Options held (Company-granted) | None | No options granted by ARL to executives . |
| RSU/PSU grants (Company) | Not disclosed | ARL states executives receive no direct remuneration; equity grants by ARL to executives not indicated . |
Performance Compensation
ARL’s “pay-for-performance” linkage exists at the advisor level (Pillar), not via executive awards at ARL.
| Incentive Mechanism | Metric | Structure/Weighting | Target/Timing | Payout & Vesting |
|---|---|---|---|---|
| Gross Asset Fee (Advisor) | Gross Asset Value | 0.0625% per month (0.75% per annum) based on average Gross Asset Value under the Amended Advisory Agreement effective Jan 1, 2024 . | Ongoing, calculated monthly | Fee-based; no vesting . |
| Net Income Fee (Advisor) | Adjusted Net Income | 7.5% of Adjusted Net Income per fiscal year; payable quarterly after 10-Q/10-K filings; not cumulative year to year . | Quarterly following filings | Fee-based; no vesting . |
| GAV Fee (2025 proxy description) | Gross Asset Value | Described as 0.0625% per annum on average Gross Asset Value in 2025 proxy . | Ongoing | Fee-based; no vesting . |
- Definitions (2024 proxy): “Adjusted Net Income” = Net Income before income tax and interest on any receivables from the Advisor, excluding subsidiaries subject to separate advisory agreements with Pillar; “Gross Asset Value” = total assets under GAAP less amortization/depreciation/depletion and valuation reserves; excludes receivables from Pillar and assets of subsidiaries with separate advisory agreements .
Equity Ownership & Alignment
- ARL’s controlling shareholder is Realty Advisors, Inc. (RAI), wholly owned by May Realty Holdings, Inc. (MRHI), with 14,669,820 shares (~90.82% of class) as of November 2024 and November 2025, based on 16,152,043 shares outstanding .
- “Security Ownership of Management” tables attribute 14,669,820 shares to certain executives and directors, including Erik L. Johnson, with footnote that executive officers of RAI each disclaim beneficial ownership of shares owned by RAI .
| Holder | Shares | % of Outstanding | Notes |
|---|---|---|---|
| Realty Advisors, Inc. (RAI) | 14,669,820 | 90.82% | Wholly owned by MRHI; director Mickey Ned Phillips . |
| Erik L. Johnson | 14,669,820 (1) | 90.82% | Attributed under Rule 13d-3; executives of RAI disclaim beneficial ownership . |
- Pledging/Hedging: No pledging or hedging by Erik Johnson is disclosed in the proxies reviewed .
- Stock ownership guidelines: Not disclosed for executives; ARL notes executives are employed by Pillar .
Employment Terms
- Appointment: Erik L. Johnson appointed President and CEO effective May 28, 2024; previously Interim Principal Executive Officer since April 14, 2023 .
- Employment agreements, severance, change-of-control: Not disclosed by ARL for Erik Johnson; ARL emphasizes executives are compensated and employed by Pillar .
- Executive roles not subject to stockholder vote .
Company Performance Reference (context for incentives)
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues (USD) | $34,080,000 | $47,023,000 | $44,763,000 |
| EBITDA (USD) | $473,112,000* | $6,573,000* | $7,341,000* |
| Net Income (USD) | $373,349,000 | $3,968,000 | -$14,703,000 |
- Values retrieved from S&P Global.
- Note: ARL’s advisor receives fees tied to Gross Asset Value and Adjusted Net Income, with cash management arrangements under a Cash Management Agreement; interest rates transitioned from WSJ Prime +1% to SOFR effective January 1, 2024 .
Governance and Related-Party Context
- Compensation Committee: Comprised entirely of independent, non-employee directors; ARL pays compensation only to independent directors, not executives .
- Advisory and Related Party Structure: Pillar has long-standing advisory, cash management, and related party service relationships; Pillar directors include Erik L. Johnson, and affiliates provide property management and brokerage under fee schedules approved by independent directors .
Investment Implications
- Alignment and pay-for-performance: Executive cash/equity awards at ARL are absent; compensation linkage operates via Pillar’s advisory fee structure (GAV fee and 7.5% Net Income fee). This aligns advisor incentives with asset base and adjusted net income, but not with shareholder TSR, and creates potential divergence from minority shareholder interests .
- Control and ownership concentration: RAI/MRHI controls ~90.82% of ARL; management attribution with disclaimers highlights concentrated control and limited float, which can dampen traditional insider selling pressure signals and increase governance scrutiny for related-party transactions .
- Disclosure gaps for executive-specific incentives: No ARL-level details on Erik Johnson’s base, bonus, equity grants, vesting, severance, or change-of-control terms; those likely reside at Pillar and are not reported by ARL, limiting visibility into executive retention or acceleration mechanics .
- Operational volatility and advisor fees: Volatile net income and revenues, combined with advisor fees based on Gross Asset Value and Adjusted Net Income, suggest the advisor’s economics can remain supported even when GAAP net income is negative, warranting careful evaluation of fee sustainability and minority protections under the advisory and cash management agreements .