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Terry Brown

Lead Independent Director at AVALONBAY COMMUNITIES
Board

About Terry S. Brown

Lead Independent Director at AvalonBay Communities, Inc. since May 2023; independent director since 2015. Co-Founder and Managing Partner of Asana Partners (private real estate investment firm) since 2015; previously Chairman & CEO of EDENS and CEO of Andersen Corporate Finance LLC (Arthur Andersen broker-dealer). Age 63. Education: Bachelor of Business Administration, University of Georgia, summa cum laude .

Past Roles

OrganizationRoleTenureCommittees/Impact
EDENSChairman & Chief Executive OfficerJoined 2002Led one of the country’s leading private owners, operators and developers of retail real estate
Andersen Corporate Finance LLC (Arthur Andersen)Chief Executive OfficerNot disclosedResponsible for global strategy and investment banking activities across industries

External Roles

OrganizationRoleTenureNotes
Asana PartnersCo-Founder & Managing PartnerSince 2015Private real estate investment company
Other public company boardsNoneNo current public directorships disclosed

Board Governance

  • Independence: The Board affirmatively determined Brown is independent under NYSE standards (all directors except Naughton and Schall) .
  • Lead Independent Director: Serves since May 2023; duties include presiding when Chair not present, setting/approving agendas, calling meetings of independent directors, serving as liaison with Chair/CEO, and acting as contact for stockholders .
  • Committees: Compensation Committee member; Nominating, Governance and Corporate Responsibility (NGCR) Committee member .
  • Committee responsibilities: Compensation oversees executive pay programs, goals, incentive plans, and may delegate certain grants; NGCR manages director nominations, governance policies, director compensation reviews, succession planning, and corporate responsibility oversight .
  • Attendance: Board met seven times in 2024; each director attended at least 75% of Board and committee meetings; all directors attended the 2024 Annual Meeting; regular executive sessions held with the Lead Independent Director presiding .

Fixed Compensation

ComponentAmountTiming/Terms2024 Actuals for Brown
Annual cash retainer (non-employee directors)$100,000Quarterly; payable in cash or at director’s election in deferred stock unitsElected DSUs in lieu of $100,000 cash; shown within stock awards
Annual equity retainer$190,000 (2024); increased to $200,000 after 2025 MeetingGranted 5th business day post-Annual Meeting; vests in equal quarterly installments over one year (DSUs payable after service end); dividends credited as RSUs
Lead Independent Director additional retainer$50,000Quarterly; payable in cash or DSUsReceived $42,500 for LID service in 2024 (included in stock awards)
Committee chair fees$25,000 (Comp); $20,000 (NGCR/IFC); $30,000 (Audit)QuarterlyNot applicable (Brown not a chair)
Meeting feesNone

Director Compensation (FY2024):

NameFees Earned or Paid in Cash ($)Stock Awards ($)Total ($)
Terry S. Brown331,890 (includes DSU election of $100,000 and $42,500 LID retainer) 331,890

Director Stock Ownership Guidelines: Non-employee directors must hold shares/DSUs equal to at least 5x the annual cash retainer; all non-employee directors with 5+ years of service were in compliance as of April 1, 2025 .

Performance Compensation

  • Not applicable to non-employee directors; director pay consists of retainers and time-vested equity (no performance-based metrics disclosed) .

Other Directorships & Interlocks

ItemDetail
Current public company boardsNone
Compensation Committee interlocksCompany disclosed no interlocks or insider participation; no member served as an officer/employee of AVB; no reciprocal board/committee relationships with AVB executives

Expertise & Qualifications

  • Real estate investment and operations: Co-led and managed large private real estate platforms (Asana Partners, EDENS) .
  • Capital markets/investment banking: Former CEO of Andersen Corporate Finance LLC overseeing global strategy and IB activities .
  • Corporate governance leadership: Lead Independent Director responsibilities and service on Compensation and NGCR Committees .
  • Education: BBA, University of Georgia (summa cum laude) .

Equity Ownership

HolderShares Beneficially Owned% of ClassNotes
Terry S. Brown16,505 * (less than 1%) Includes shares issuable in future under deferred stock awards elected in lieu of restricted stock
Ownership guideline complianceYes (among directors with 5+ years) Guideline is 5x annual cash retainer; compliance confirmed as of April 1, 2025
Pledging/HedgingProhibited by Board policy for directors and officers Anti-hedging/anti-speculation and no-pledging policies in force

Governance Assessment

  • Strengths:

    • Independent leadership with Brown as Lead Independent Director; robust duties enhancing board effectiveness and investor engagement .
    • Independent Compensation and NGCR Committees; clear charters and oversight of executive pay, succession, and corporate responsibility .
    • Strong governance policies: majority voting, no poison pill, clawback policy, anti-hedging/no-pledging, proxy access, and double-trigger vesting for change in control .
    • Stockholder engagement: management outreach to holders of ~two-thirds of outstanding shares; feedback conveyed to Board .
    • Say-on-pay support: ~95.5% approval in 2024, signaling investor confidence in compensation governance .
  • Potential conflicts/mitigants:

    • Brown’s active role at Asana Partners (private real estate) could present industry overlap; Board’s independence determinations and related-party review policy (administered by NGCR) mitigate risk; no specific related-party transactions involving Brown disclosed .
    • Compensation consultant relationships assessed by the Compensation Committee (Ferguson Partners and affiliate); Committee concluded no material conflicts of interest .
  • Attendance/Engagement:

    • Board met 7 times in 2024; all directors met at least 75% attendance and attended 2024 Annual Meeting; regular executive sessions with LID presiding .

Insider Trades

ItemDetail
Section 16 filingsCompany reported Insiders’ filings were timely for FY2024, with one exception unrelated to directors (former non-executive officer); no issues noted for directors including Brown

RED FLAGS

  • None disclosed regarding Terry S. Brown: no related-party transactions, no hedging/pledging, and high say-on-pay support. The Committee’s review of consultant conflicts and the Board’s independence affirmations reduce perceived conflict risk .

Appendix: Committee Membership Snapshot (2024)

CommitteeMembersChairMeetings (2024)Relevance to Investor Confidence
CompensationLieb (Chair), Brown, Hills, Swanezy Lieb 4 Oversees executive pay and incentive alignment; reviews HCM and pay equity
NGCRSwanezy (Chair), Aeppel, Brown, Howard Swanezy 4 Oversees board composition, governance, director compensation, and CR policies
Investment & FinanceLynch (Chair), Aeppel, Havner, Hills, Howard, Mueller, Naughton, Schall Lynch 5 Reviews portfolio allocation, investment/financing; incorporates sustainability

Overall assessment: Brown’s governance footprint—LID role plus service on Compensation and NGCR—supports board effectiveness and investor alignment. His equity-heavy director compensation (including DSU elections) and compliance with ownership guidelines indicate strong alignment, while independence determinations and related-party oversight reduce conflict risk .