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Richard Hickson IV

Executive Vice President, Operations at COUSINS PROPERTIES
Executive

About Richard Hickson IV

Richard G. Hickson IV serves as Executive Vice President – Operations at Cousins Properties (NEO). The 2025 proxy lists him among the company’s named executive officers; formal age, education and biography are not provided in the proxy. Company performance context during the latest cycle: three‑year TSR to 12/31/2024 was −19.44% vs FTSE Nareit Equity Office (−22.7%) and FTSE Nareit Equity (−14.12%). 2024 operating highlights included 2.0M sf leased, office portfolio 91.6% leased, cash NER +8.5%, and same‑property NOI +4.8%.

Past Roles

Not disclosed in the 2025 or 2024 DEF 14A (no officer biographies provided)

External Roles

Not disclosed in the 2025 or 2024 DEF 14A (no officer biographies provided)

Fixed Compensation

Multi‑year Summary Compensation Table (NEO-specific):

Component ($)202220232024
Salary428,480 442,000 453,050
Stock Awards (grant‑date fair value)619,357 673,576 854,394
Non‑Equity Incentive (Annual Bonus)397,587 516,344 580,221
All Other Compensation35,428 37,806 37,391
Total1,480,852 1,669,726 1,925,056

All Other Compensation (2024 breakdown):

Item2024
Retirement Savings Plan (3% automatic contribution; plan max $10,350)10,350
Insurance premiums and HSA contributions27,041
PerquisitesNone for Hickson (CEO only had personal security)

Base salary changes and bonus target:

Item20232024
Base Salary442,000 453,050
Annual Bonus Target (% of Base)90% 90%

Performance Compensation

Annual Incentive Plan (AIP) design and 2024 outcomes:

MetricWeight2024 Target2024 Actual/AssessmentComponent Payout
Funds From Operations (FFO) per share40% Threshold/Target/Max set vs 2024 guidance midpoint Above target; acquisitions, debt investments, leasing interest savings, fees aided results 174%
Gross office leasing volume25% 1.5M sf goal 135% achieved; >60% leasing in H2 2024 135%
Net Effective Rent (NER) performance25% ≥ budgeted NER per‑lease (weighted avg) 115% achieved; NER ~+15% vs 2023 115%
Corporate Responsibility (aggregate of sub‑metrics)10% GRESB 4 Stars; Fitwel 52% portfolio; healthy culture; Green Street > avg GRESB 4 Stars 100%; Fitwel 56% = 108%; culture 100%; Green Street 100% 100–108% by sub‑metric

Overall AIP payout for 2024: 142.3% of target; Hickson’s actual bonus $580,221 vs target $407,745 (90% of base).

Long‑Term Incentive (LTI) program (2024 awards):

  • Mix and mechanics: 40% time‑vested restricted stock (ratable over 3 years), 42% Market RSUs (3‑year cliff; relative TSR vs FTSE Nareit Equity Office; 0% below 30th pct, 35% at 30th, 100% at 50th, 200% at ≥75th), 18% Performance RSUs (3‑year cliff; FFO/share sliding scale 0% ≤60% of Target, 100% at Target, 200% at 140%+).
  • Hickson 2024 LTI target value $700,000; grants on 2/16/2024 at $23.61/share: 11,859 restricted shares; 12,452 Market RSUs; 5,337 Performance RSUs.
2024 LTI Grants (units)Grant DateRestricted StockMarket (TSR) RSUsPerformance (FFO) RSUs
Richard G. Hickson IV02/16/202411,859 12,452 5,337

Stock vested in 2024 (delivery/settlement):

MeasureHickson
Shares acquired on vesting (2024 total)20,328
Value realized on vesting$505,040
Breakdown: Restricted Stock7,008 shares
Breakdown: Market/Performance RSUs (from 2021 grants; avg payout 144.5%)13,320 shares
DEUs (cash‑settled) tied to 2021 RSUs$53,443

Equity Ownership & Alignment

Ownership, pledging, and guidelines:

ItemDetail
Beneficial ownership (as of 2/27/2025)52,314 shares (includes 31,830 jointly with spouse); plus 21,181 restricted stock; less than 1% of class.
Outstanding unvested stock awards (12/31/2024)34,105 shares; MV $1,044,977 at $30.64
Outstanding unearned RSUs (12/31/2024)31,550 units; MV $966,692 at $30.64
Hedging/PledgingHedging and pledging prohibited; none of the executive officers or directors hold stock subject to pledge.
Ownership guidelinesCEO 4x salary; EVPs 2x salary; directors 5x retainer; 24‑month 50% post‑vest holding requirement.

Employment Terms

Severance, retirement (Rule of 65), and change‑in‑control (CIC):

  • At‑will employment; general severance plan for terminations without cause (weekly pay × years of service + 4; terms subject to change).
  • Rule of 65 (age ≥60 and age+service ≥65): waives service condition for RSUs at retirement; does not accelerate Market/Performance RSUs or apply to restricted stock. As of 12/31/2024, only Mr. McColl met Rule of 65 (Hickson did not).
  • CIC Agreements (double trigger; no tax gross‑ups; “best net” cutback; two‑year health benefits; non‑compete 2 years within 15 miles of projects): CEO multiple 3.0x; EVP multiples 2.0x salary+avg bonus (includes Hickson).

Scenario economics (as of 12/31/2024):

Scenario (Hickson)CashAccel. Vesting – RestrictedAccel. Vesting – Market/Perf RSUsHealth/WelfareTotal
Involuntary or Good Reason termination following CIC$1,725,508 $609,031 $1,228,909 $52,400 $3,615,848
Termination without cause (non‑CIC)$107,454 $107,454
Death$609,031 $1,228,909 $1,837,940

Insider Transactions and Vesting‑Related Flow

  • Form 4 activity around February 2024 reflects routine tax withholding on vesting and annual LTI grants (e.g., shares withheld for taxes on 2/2/2024; restricted stock award reported; plan awards dated 2/16/2024). Examples: Feb 2, 2024 tax withholding filing; Feb 21, 2024 restricted stock award note; EDGAR index for 2024 filings.
  • 2024 vesting deliveries for Hickson: 20,328 shares valued at $505,040; includes 13,320 RSUs (144.5% payout on 2021 cohort) and $53,443 cash DEUs. These events often create near‑term selling/withholding pressure each early February.

Compensation Structure Analysis

  • Mix and risk: Hickson’s target pay emphasizes at‑risk compensation—bonus tied to multi‑factor operating metrics and majority of LTI in performance/market‑based RSUs (60%). This aligns with shareholder outcomes (TSR and FFO) and three‑year service/market conditions.
  • AIP rigor and discretion: Caps of 200% per component and 150% overall; 2024 payout 142.3% driven by above‑target FFO and strong leasing/NER despite sector headwinds, suggesting metrics captured operational execution in a tough office market.
  • Clawback and governance: Robust NYSE‑compliant clawback for incentive pay tied to financial restatements (3‑year lookback); anti‑hedging/pledging; post‑vest holding requirements; no option repricing; no tax gross‑ups in CIC agreements.
  • Peer benchmarking and say‑on‑pay: Compensation reviewed against an office REIT peer set (e.g., DEI, KRC, HIW, VNO, HPP, etc.); say‑on‑pay support 90.83% in 2024.

Equity Vesting Schedules and Overhang

Award TypeVesting Terms
Restricted Stock (2024 grant)Ratable over three years from 2/16/2024, service‑based.
Market RSUs (2024 grant)3‑year cliff (2024–2026), relative TSR vs FTSE Nareit Equity Office; 0–200% payout.
Performance RSUs (2024 grant)3‑year cliff (2024–2026), FFO/share sliding scale; 0–200% payout.

Outstanding at 12/31/2024 for Hickson: 34,105 unvested stock awards (MV $1,044,977) and 31,550 unearned RSUs (MV $966,692) at $30.64. 2022 LTI cohort earned 166.3% and settled 1/31/2025 (Hickson earned 11,982 TSR RSUs and 2,246 FFO RSUs; $58,630 DEUs cash).

Related Policies and Risk Controls

  • No employment agreements; at‑will employment.
  • Assessment finds low likelihood of excessive risk‑taking given pay mix, caps, multi‑year vesting, ownership/holding requirements, and clawback.

Say‑on‑Pay & Shareholder Feedback

  • 2024 say‑on‑pay approval on 2023 compensation: 90.83%; 2019–2024 average ~92.7%. Ongoing investor engagement on strategy, governance, compensation, and sustainability.

Investment Implications

  • Alignment: High share of at‑risk equity (with 60% performance/market RSUs) and strict anti‑hedging/pledging support alignment; EVPs must hold 2x salary with 24‑month post‑vest holds, limiting immediate liquidity.
  • Retention vs pressure: Three‑year cliff performance RSUs and annual February grant/vesting cadence create predictable windows of potential selling/withholding; Hickson does not meet Rule of 65, which reduces near‑term retirement‑related acceleration risk.
  • Pay‑for‑performance: 2024 AIP payout (142.3%) reflects strong leasing/NER and above‑target FFO in a challenged office sector; for investors, this suggests management execution levers (leasing velocity, pricing discipline, capital markets) remain central compensation drivers.
  • Downside protection and M&A: Double‑trigger CIC (2.0x salary+avg bonus for EVPs), best‑net cutback, target‑level RSU acceleration upon qualifying termination, and two‑year non‑compete balance change‑in‑control incentives with post‑deal retention and shareholder protections.