Anne Olson
About Anne Olson
Anne Olson, 48, is President, Chief Executive Officer, Secretary, and an Executive Trustee of Centerspace; she became CEO and joined the Board on March 31, 2023 and has served as Secretary since April 30, 2017 . In 2024 under Olson’s leadership, Core FFO per diluted share increased 2.1% to $4.88, same-store NOI grew 3.7%, and adjusted EBITDA margin reached 50.3% (non-GAAP) . Centerspace’s TSR in the proxy’s pay-versus-performance framework improved from 92 in 2023 to 112 in 2024 (base=100 in 2020), indicating shareholder return progress during her tenure as CEO . Olson holds a B.A. in English and a J.D. with highest honors from Drake University .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Centerspace | President & CEO; Secretary; formerly COO; formerly EVP & General Counsel | CEO since 3/31/2023; Secretary since 4/30/2017; COO 6/25/2018–3/30/2023; GC 4/30/2017–3/30/2023 | Led strategic and operating execution; prior roles spanned operations and legal, enabling integrated performance management |
| Dorsey & Whitney LLP | Partner, Real Estate Practice Group | ~2011–2017 | Focused on REIT development/investments for REITs, PE funds, developers/owners |
| Welsh Companies, LLC | Director of Investment Operations and in-house counsel | Pre-2011 | Drove asset growth and capital markets strategy |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| CareTrust REIT (NYSE: CTRE) | Board Member | Current | Public company directorship |
| National Multi Housing Council | Member | Current | Industry leadership |
Fixed Compensation
| Component | 2023 | 2024 | Notes |
|---|---|---|---|
| Base Salary ($) | $450,000 | $575,000 | +28% YoY reflecting role and peer benchmarking |
| Target STIP (% of Salary) | 100% | 100% | CEO target unchanged |
| Actual STIP Payout ($) | $652,500 | $993,490 | 2024 payout equated to 173% of target |
Performance Compensation
2024 Short-Term Incentive Plan (STIP)
| Metric | Weight | Threshold | Target | Maximum | Actual | Payout vs Target |
|---|---|---|---|---|---|---|
| Core FFO per diluted share | 30% | $4.68 (50%) | $4.78–$4.82 (100%) | $4.96 (200%) | $4.96 | 200% |
| Same-store NOI growth | 30% | 1.5% (50%) | 2.25%–2.75% (100%) | 4.5% (200%) | 3.7% | 154% |
| Adjusted EBITDA margin | 20% | 47.75% (50%) | 48.5%–49.0% (100%) | 50.5% (200%) | 50.3% | 183% |
| Strategic goals (qualitative) | 20% | — | — | — | Committee-assessed | 150% |
| Total CEO STIP payout | — | — | — | — | $993,490 | 173% of target |
Notes: Core FFO, same-store NOI, and adjusted EBITDA margin are non-GAAP measures as defined in the proxy .
2024 Long-Term Incentive Plan (LTIP)
| Element | 2024 Target Value | Vehicles | Vesting/Performance | Granted (Units) |
|---|---|---|---|---|
| CEO LTIP | $1,150,000 | 50% time-based RSUs; 50% performance RSUs | Time RSUs vest 1/1/2025, 1/1/2026, 1/1/2027, ratable ; PSUs earned on 3-year relative TSR vs FTSE Nareit Equity Index (25th=50%, 50th=100%, 75th=200%) through 12/31/2026 | 10,134 time RSUs; 10,134 target PSUs |
| Tracking status (open periods) | — | — | 2023/2024 PSU cycles tracking above target as of 1/31/2025; 2022 cycle paid 0% | — |
Grant-date fair value recorded for 2024 awards: $1,406,599 (time-based and performance RSUs) .
Equity Ownership & Alignment
Beneficial Ownership (as of March 20, 2025)
| Holder | Common Shares | % of Outstanding |
|---|---|---|
| Anne Olson | 18,746 | <1% |
Shares outstanding: 16,726,594 as of March 20, 2025 .
Unvested Equity (12/31/2024 snapshot)
| Award Type | Grant Date | Unvested Units | Market Value Basis | Vesting Detail |
|---|---|---|---|---|
| Time-based RSUs | 1/1/2024 | 10,134 | $66.15 per share at 12/31/2024 | Vests 1/1/2025–1/1/2027 (ratable) |
| Time-based RSUs | 3/31/2023 | 5,492 | $66.15 | Vests in full 3/31/2026 |
| Time-based RSUs | 1/1/2023 | 2,015 | $66.15 | Vests ratably over three years |
| Time-based RSUs | 1/1/2022 | 374 | $66.15 | Vests ratably over three years |
| Performance RSUs (target) | 1/1/2024 | 10,134 | $66.15 | Earned on 3-year relative TSR through 12/31/2026 |
| Performance RSUs (target) | 1/1/2023 | 5,037 | $66.15 | Earned on 3-year relative TSR through 12/31/2025 |
Note: Market value reference is the disclosed $66.15 closing price on 12/31/2024; PSUs shown at target as disclosed .
Stock Options Outstanding (12/31/2024 snapshot)
| Grant Date | Exercisable | Unexercisable | Exercise Price | Expiration |
|---|---|---|---|---|
| 1/1/2023 | 2,823 | 8,471 | $58.67 | 1/1/2033 |
| 1/1/2022 | 3,762 | 3,763 | $110.90 | 1/1/2032 |
| 1/1/2021 | 8,268 | 2,756 | $70.64 | 1/1/2031 |
| 5/21/2020 | 32,215 | — | $66.36 | 5/21/2030 |
Reference stock price at 12/31/2024: $66.15 .
Ownership Policies and Alignment Mechanisms
- CEO ownership guideline: 5x base salary; retention requirement: hold 60% of net after-tax shares until guideline met; 5-year compliance window from appointment/promotion .
- Hedging/pledging: Prohibited for executives and trustees; also no margin pledging allowed .
- Employee trustees receive no separate Board pay, aligning economic exposure to executive pay programs .
Employment Terms
| Provision | CEO Terms |
|---|---|
| Employment Agreement | Effective March 31, 2023; terminable by either party subject to notice |
| Severance (no change-in-control) | If terminated without cause (incl. death/disability) or for good reason: lump sum 2x base salary + 2x target annual bonus + pro-rated current-year target bonus; 18 months COBRA premium reimbursement; up to $10,000 outplacement; equity vests per plan; options exercisable until option expiration (noted as three months from termination in proxy description) |
| Change-in-Control (double-trigger) | Upon CoC plus qualifying termination: cash severance 3x (base + target bonus); time-based awards vest; performance awards vest at target; 18 months health coverage reimbursement; other plan benefits per terms |
| Estimated Maximum (12/31/2024 hypothetical) | CoC+termination: $2,341,806 cash + $2,258,617 equity acceleration = $4,600,423 total; health reimbursement estimated at $41,806 included in cash figure |
| Restrictive Covenants | Non-compete (6 months), non-solicit, confidentiality (as conditions for CoC severance) |
| Clawback | Mandatory “no-fault” recovery for restatements plus discretionary recoupment for misconduct-related restatements |
Board Governance
- Board seat and independence: Olson is an Executive Trustee (not independent); she holds no Board committee roles .
- Separation of Chair and CEO: Board is led by an independent Chair (John A. Schissel), with policy preference to separate roles .
- Committee structure: Audit, Compensation, and Nominating & Governance composed solely of independent trustees .
- Meeting cadence and attendance: In 2024, Board met 9 times; all nominees attended ≥75% of their Board/committee meetings .
- Employee Board pay: Employees receive no separate trustee compensation .
Performance & Track Record
- 2024 execution: Core FFO per share increased to $4.88 (+2.1% YoY); same-store NOI growth 3.7%; acquired a 129-home Denver asset for $54M; redeemed $97M of Series C preferred using $112.6M ATM equity raised; adjusted EBITDA margin 50.3%; also disposed of two non-core communities for $19M .
- Incentive alignment: 2024 STIP tied to Core FFO/share (30%), same-store NOI growth (30%), adjusted EBITDA margin (20%), and strategic goals (20%), with payouts determined by transparent thresholds/targets .
- Shareholder support: 2024 say-on-pay received ~96.29% approval .
- CEO pay ratio: 51:1 for 2024 (CEO total comp $2,992,339; median employee $59,148) .
- Pay-versus-performance: “Compensation actually paid” to the CEO rose alongside TSR and Core FFO dynamics in 2024, consistent with design .
Compensation Structure Analysis
- Mix and risk: CEO compensation emphasizes at-risk pay via a 100% target bonus and 50/50 split between performance RSUs (3-year relative TSR) and time RSUs (3-year vesting), with no guaranteed minimums; 2024 grants included no new stock options, tilting long-term incentives toward RSUs versus options .
- Metric rigor: 2024 exceeded maximum FFO/share and delivered strong outcomes on NOI and margin, driving a 173% STIP payout for the CEO; 2022 PSU cycle paid 0%, evidencing downside sensitivity; 2023–2024 PSU cycles are tracking above target but remain unearned until measurement end .
- Governance safeguards: Double-trigger CoC, mandatory and discretionary clawbacks, prohibitions on hedging/pledging, and robust ownership/retention guidelines reduce misalignment risk .
Equity Ownership & Trading Signals
- Skin-in-the-game: Olson beneficially owns 18,746 shares (<1%); CEO ownership requirement is 5x salary with 60% net-share retention until compliance, supporting multi-year alignment .
- Vesting calendar and pressure: Meaningful time-based RSUs vest in 2025–2027 (1/1 annually), and large PSU tranches conclude in 2025 and 2026; vesting events (especially if PSUs are earned at/above target) can create episodic liquidity windows and supply, though retention policy tempers near-term selling .
- Options profile: Most legacy options are at or out of the money at 12/31/2024 price ($66.15), except the 1/1/2023 grant at $58.67, limiting immediate monetization incentives from options .
Employment & Contracts (Retention Risk)
- Term/renewal: Agreement is at-will subject to notice; severance and CoC protections are competitive, which supports retention and stability .
- Non-compete/non-solicit: CoC severance contingent on restrictive covenants (6-month non-compete), reducing transition risk but also providing post-termination protections for the company .
- Potential payouts: Hypothetical maximum CoC+termination value estimated at $4.6M as of 12/31/2024 (cash $2.34M; equity acceleration $2.26M), modest relative to many REIT CEOs, limiting “golden parachute” inflation risk .
Compensation Peer Group and Committee Practices
- Peer group: 2024 compensation benchmarked to a REIT peer set (e.g., IRT, Veris, NexPoint, BRT, Elme; AIRC removed after acquisition), balancing size, geography, and asset focus .
- Consultants: Meridian advised through 2024; Ferguson Partners retained for 2025; both affirmed independent and conflict-free .
Related Party Transactions and Governance Red Flags
- Related party transactions: None >$120,000 since the beginning of 2024 .
- Interlocks and pledging: No interlocking directorships; pledging/hedging prohibitions in place .
- Compensation risk review: Committee concluded pay policies are unlikely to encourage excessive risk-taking given structure and safeguards .
Investment Implications
- Pay-for-performance alignment appears strong: 2024 outperformance on Core FFO/share, same-store NOI, and margin translated into higher STIP payouts, while PSUs remain contingent on multi-year TSR vs a broad REIT index, reinforcing long-term alignment .
- Vesting overhang manageable: Time-based RSUs vest ratably through 2027 and PSUs cliff-vest in 2025/2026 if earned; retention and ownership policies mitigate immediate selling pressure, but watch for incremental supply around vest dates and 10b5-1 activity .
- Retention risk moderated by contracts: Competitive severance, double-trigger CoC protection, and modest estimated CoC payouts reduce turnover risk while avoiding excessive parachute optics .
- Governance is a net positive: Independent Chair, fully independent key committees, strong clawbacks, and anti-hedging/pledging policies support shareholder-friendly oversight of a CEO who also sits on the Board but holds no committee roles .
- Monitor TSR delivery and PSU trajectory: 2023–2024 PSU cycles are tracking above target but unearned; sustained relative TSR through measurement end will be a key signal on value creation and potential step-up in realized equity comp .