Kevin A. Crummy
About Kevin A. Crummy
Kevin A. Crummy is Chief Investment Officer (CIO) of Douglas Emmett, Inc. (DEI). He joined DEI in 2014 after 20 years at Eastdil Secured and holds a BBA and an MS in Real Estate and Urban Land Economics from the University of Wisconsin School of Business; he is 59 years old as of April 1, 2025 . In 2024, DEI’s compensation framework for NEOs (including the CIO) tied incentives to five equally weighted goals: FFO, absolute/relative TSR, ESG, operating goals, and external activities; DEI achieved FFO of $1.71/share versus a $1.67 target and recorded absolute TSR of 34.42% for 2024 (79th percentile vs peer group), while 3- and 5‑year TSR remained negative; these outcomes informed incentive decisions and award sizing . For pay-versus-performance context, DEI reported 2024 Net Income of $7.6 million and FFO of $345.5 million, with a $100 TSR index value of $53 at year-end 2024 (peer group $73) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Eastdil Secured | Managing Director; led sales/recaps in LA, Hawaii, and other West Coast markets; led Asia-sourced capital team for U.S./Europe | 20 years (prior to joining DEI in 2014) | Cross-border capital sourcing and large-cap transaction execution experience relevant to DEI’s acquisition, JV, and recap strategy |
External Roles
- No external public company directorships or committee roles disclosed in the DEI 2025 proxy for Mr. Crummy .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary | $600,000 | $600,000 | $600,000 |
| Target Bonus % | Not disclosed | Not disclosed | Not disclosed |
| Actual Cash Bonus Paid | $200,000 | $200,000 | $200,000 |
| Perquisites (401k match, auto allowance) | $13,000 | $13,000 | $13,000 |
Notes: Bonus amounts for Mr. Crummy represent the discretionary cash portion of his variable incentive compensation determined by the Compensation Committee after review of annual performance . Perquisites are limited and below peer averages per DEI’s compensation philosophy .
Performance Compensation
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2024 Performance Framework and Outcomes (applies to NEOs including CIO): | Metric Category | Weight | Target | Actual/Outcome | Committee Rating | Payout/Vesting Mechanics | |---|---:|---|---|---|---| | FFO per share | 20% | $1.67 | $1.71 achieved | Outperform | Awards delivered as LTIP Units granted Dec 12, 2024; 3-year vesting; transfer restricted 4–7 years post-grant by vest tranche; requires 2% stock price hurdle within 10 years or forfeiture | | Total Shareholder Return (absolute and relative) | 20% | N/A (benchmarked vs peer group) | 1-yr TSR 34.42% (79th percentile), 3-yr −35.70% (39th), 5-yr −46.88% (26th) | Perform | Same LTIP mechanics as above | | ESG goals | 20% | Reduce GHG 30% by 2035; 80% ENERGY STAR for eligible space; workforce diversity | −13% GHG vs 2019 and 84% ENERGY STAR achieved; diversity reflective of markets | Outperform | Same LTIP mechanics as above | | Operating goals | 20% | IT upgrades; G&A % in lower half; leased rate above market; progress on key projects | IT upgrades delivered; G&A 4.6% vs 8.8% peer average; mixed leased-rate data; strong progress on Studio Plaza, Barrington Plaza, Bishop Place | Outperform overall | Same LTIP mechanics as above | | External activities/other factors | 20% | No numeric targets; evaluate acquisitions, financings, development | $325M secured JV loan; new JV & acquisition in Westwood with $61.8M loan; planned $150–$200M total investment | Outperform | Same LTIP mechanics as above |
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2024 Equity Grant (CIO): | Approval Date | Grant Date | Instrument | Units | Grant-Date Price | Grant-Date Fair Value | |---|---|---|---:|---:|---:| | Dec 4, 2024 | Dec 12, 2024 | LTIP Units | 96,398 | $19.71/share (close) | $1,330,292 |
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Outstanding and Vested Equity: | As of 12/31/2024 | Unvested LTIP Units | Market Value (at $18.56) | 2024 Units Vested | Value Realized at Vest ($18.56) | |---|---:|---:|---:|---:| | Kevin A. Crummy | 165,805 | $3,077,341 | 101,276 | $1,879,683 |
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Scheduled Vesting (subject to service, hurdle, and lock-up): | Vest Date | Units | |---|---:| | Dec 31, 2025 | 85,706 | | Dec 31, 2026 | 56,000 | | Dec 31, 2027 | 24,099 |
Mechanics and selling pressure: Executive LTIP awards vest over three years; transfer is restricted for 4–7 years after grant (by vest tranche) and require the stock to exceed 102% of the grant-date price within 10 years or the award is forfeited, materially reducing near-term selling pressure and tying value realization to multi‑year performance .
Equity Ownership & Alignment
| Ownership Measure (Record Date: Apr 1, 2025) | Amount |
|---|---|
| Beneficial ownership (share equivalents) | 383,633; less than 1% of class |
| Included OP Units (share equivalents) | 381,297 |
| Executive ownership guidelines | 3x salary for executive officers; all executives in compliance as of Record Date |
| Insider trading/hedging/pledging | Hedging prohibited; derivatives prohibited; margin and pledging prohibited unless specifically approved; preclearance required |
| Options outstanding | None (no options outstanding company-wide; LTIPs are “full value” units) |
Employment Terms
| Topic | Terms (CIO unless noted) |
|---|---|
| Employment agreement | None disclosed for CIO; employment agreements exist only for CEO/COO |
| Contract term/auto-renewal | Not disclosed for CIO |
| Severance (without cause/good reason) | No contractual severance for CIO; CEO/COO receive 3x three‑year average comp plus benefits |
| Change-of-control | No single triggers; double-trigger construct; if DEI equity ceases to be publicly traded on CoC, unvested equity accelerates (estimated $3.1M value for CIO at 12/31/2024) |
| Death/disability | Acceleration limited to equity scheduled to vest in year of termination; estimated ~$1.9M for CIO if termination immediately after 12/31/2024 (based on 2024 vesting and price) |
| Clawback | SEC/NYSE-compliant clawback policy adopted Dec 1, 2023; allows recovery of erroneously awarded incentive-based comp; broader recoupment for fraud/misconduct |
| Tax gross-ups | None; no 280G gross-up provisions |
| Non-compete / non-solicit | Not disclosed for CIO; non-compete terms disclosed only for CEO/COO |
Performance & Track Record (selected indicators)
- 2024 FFO per share achieved $1.71 vs $1.67 target; Committee rated FFO “Outperform,” supporting equity award sizing .
- TSR: 2024 absolute TSR 34.42% (79th percentile vs peer group); 3‑yr −35.70% (39th percentile); 5‑yr −46.88% (26th percentile), leading to an overall “Perform” rating on TSR .
- Operating/ESG execution: Lowest G&A as % of revenue among office peers (4.6% vs 8.8% peer avg); 84% ENERGY STAR eligible; tangible progress on Studio Plaza, Barrington Plaza, and Bishop Place projects—these categories were rated “Outperform” .
- Capital markets/JVs: 2024 balance-sheet actions included a $325M secured JV loan and formation of a new JV to acquire a Westwood tower and develop adjacent residential with a $61.8M loan (fixed 6–6.25%); total JV investment estimated at $150–$200M over 3–4 years .
Multi‑Year Compensation (CIO)
| Year | Salary | Cash Bonus | Stock Awards (Grant-Date Fair Value) | All Other Comp | Total |
|---|---|---|---|---|---|
| 2022 | $600,000 | $200,000 | $1,329,652 | $13,000 | $2,142,652 |
| 2023 | $600,000 | $200,000 | $1,329,623 | $13,000 | $2,142,623 |
| 2024 | $600,000 | $200,000 | $1,330,292 | $13,000 | $2,143,292 |
Compensation Structure Analysis
- Mix and risk: Approximately 71% of non-CEO/COO NEO compensation is at-risk, delivered as restricted LTIP equity subject to stock-price hurdles, multi-year vesting, and extended transfer restrictions, aligning with long-term value creation and reducing short-term selling pressure .
- Formula vs discretion: DEI intentionally avoids purely formulaic payouts; the Compensation Committee evaluates balanced quantitative/qualitative performance against pre‑established goals to discourage excessive risk-taking and account for long-horizon strategies and market conditions .
- Best practices: No single-trigger CoC, no option repricing, no tax gross-ups, hedging prohibited, pledging restricted; ownership guidelines at 3x salary with compliance reported for all executives .
Equity Ownership & Vesting Pressure Details
- Unvested LTIP Units of 165,805 for CIO vest on 12/31/2025, 12/31/2026, and 12/31/2027, with market value $3.08M at $18.56/share as of 12/31/2024; units remain subject to a price hurdle and 4–7 year transfer lock, limiting near-term liquidity .
- Insider policy restricts trading windows, requires written preclearance, and prohibits short sales, derivatives, hedging, and margin without approval, reducing risk of hedging/pledging misalignment; pledges are restricted, allowed only if the Audit Committee determines the loan can be repaid without resort to pledged shares .
Investment Implications
- Alignment and retention: The CIO’s pay is heavily equity-based with stringent 2% stock-price hurdles, three-year vesting, and 4–7 year transfer lock-ups—this defers liquidity and aligns incentives with multi‑year TSR and FFO performance, lowering near-term insider selling pressure .
- Payout stability: The Compensation Committee maintained the CIO’s compensation year-over-year despite broad company ratings of “Outperform,” signaling prudence and a balanced approach amid mixed multi‑year TSR and office market headwinds .
- Downside/CoC risk: No severance for the CIO creates some retention risk; conversely, double-trigger CoC treatment with acceleration only if the equity ceases to be publicly traded yields an estimated $3.1M acceleration value as of 12/31/2024, a moderate change‑in‑control incentive without single-trigger optics .
- Governance safeguards: Prohibitions on hedging and option repricing, no gross-ups, restricted pledging, and clawback policy mitigate governance red flags; ownership guidelines (3x salary) and reported compliance support alignment .