W. Drew Hammond
About W. Drew Hammond
W. Drew Hammond, age 51, is Senior Vice President, Chief Administrative Officer and Treasurer of Elme Communities, a role he has held since September 2023 after joining Elme in October 2012; he oversees day-to-day operations, corporate strategic planning, and the accounting, HR, legal, and treasury functions . He holds a B.S. in Business Administration and Accounting from Washington and Lee University and is a certified public accountant . Elme’s executive pay structure ties Hammond’s incentives to annual STIP measures (Core FFO/share, multifamily NOI growth, net debt/EBITDA, initiatives, and individual goals) and a three-year LTIP anchored in relative TSR versus a peer group and the FTSE Nareit Residential Index, with 2024 STIP payout at 112.4% of target for Hammond and LTIP target equal to 100% of base salary with 60% performance-based and 40% time-based equity .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Elme Communities | VP, Chief Accounting Officer | 2015–Mar 2023 | Led accounting function supporting operational and strategic goals . |
| Elme Communities | SVP & Chief Accounting Officer | Mar 2023–Sep 2023 | Senior leadership of accounting; transition to broader CAO remit . |
| CapitalSource, Inc. | Various roles, Controller | 2003–2012 | Finance leadership at a public specialty finance company . |
| Ernst & Young LLP | Senior Manager | May 2002–Dec 2003 | Audit leadership; financial reporting rigor . |
| Arthur Andersen LLP | Assurance practice roles | 1995–2002 | Audit and assurance; controls and reporting foundations . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Not disclosed | — | — | No external board roles disclosed for Hammond . |
Fixed Compensation
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | — | 315,000 | 315,000 |
| STIP Target (% of salary) | — | 60% | 60% |
| STIP Threshold / High (% of salary) | — | 30% / 105% | 30% / 105% |
| Actual STIP Paid ($) | — | 159,233 | 212,468 |
| All Other Compensation ($) | — | 44,556 | 55,386 |
| Total (SCT) ($) | — | 725,809 | 881,748 |
Perquisites and benefits detail (2024):
- Life insurance $2,462; 401(k) company match $9,625; SERP contribution $41,360; membership dues $79; parking $1,860; total $55,386 .
Performance Compensation
STIP structure and 2024 outcomes
| Metric | Weighting | Threshold | Target | High | Actual 2024 |
|---|---|---|---|---|---|
| Core FFO per share | 30% | $0.90 | $0.93 | $0.96 | $0.93 |
| Multifamily NOI Growth | 20% | 3.3% | 5.3% | 7.3% | 4.3% |
| Net Debt / Adjusted EBITDA | 15% | 6.0x | 5.5x | 5.0x | 5.7x |
| 2024 Initiatives (Customer Service, Innovation) | 10% | 5/7/9 points | 7 points | 9 points | 8.75 points |
| Individual Goals | 25% | Below/Target/High scale | — | — | Determined by CEO/Committee |
STIP payout for Hammond (2024):
| Item | Amount / % |
|---|---|
| Target STIP ($) | 189,000 |
| Actual STIP Paid ($) | 212,468 |
| Actual as % of Target | 112.4% |
STIP deferral: executives may elect to defer up to 100% of STIP into RSUs; Elme matches 25% in RSUs; match vests after three years .
LTIP design and 2024 grants
| Element | Weighting | Metric / Terms | Threshold | Target | High |
|---|---|---|---|---|---|
| Performance-based equity | 60% | Relative TSR (peer group and FTSE Nareit Residential Index) over 3 years | 33rd percentile | 51st percentile | 76th percentile |
| Time-based equity | 40% | Vests ratably on Dec 15, 2024/2025/2026 | — | — | — |
LTIP award sizing (as % of base salary, 2024):
| Executive | Threshold | Target | High |
|---|---|---|---|
| W. Drew Hammond | 70% | 100% | 145% |
2024 grants to Hammond (grant date 2/14/2024):
| Award Type | Shares (#) | Grant-Date Fair Value ($) | Vesting |
|---|---|---|---|
| Time-based restricted shares | 8,618 | 122,462 | 1/3 on Dec 15, 2024, 2025, 2026 |
| Performance-based TSR award | — | 176,432 | After 3-year period (2024–2026), immediate vesting of earned shares |
Performance tracking at 12/31/2024:
- TSR LTIP with performance period ending 12/31/2025 tracking below threshold; unearned shares assumed at threshold: 5,714 .
- TSR LTIP with performance period ending 12/31/2026 tracking below threshold for FTSE component and slightly below target for peer component; unearned shares assumed: 8,664 .
Equity Ownership & Alignment
| Ownership Item | Value |
|---|---|
| Beneficial ownership (common shares) | 57,729; <1% of shares outstanding |
| Unvested time-based stock awards (# / $) | 10,650 / $162,626 (valued at $15.27) |
| Unearned TSR awards not vested (# / payout value $) | 14,378 / $219,555 |
| Group ownership (all trustees & execs) | 1,191,866 shares; 1.4% |
Ownership policies and alignment:
- Executive share ownership guidelines: Senior Vice Presidents must hold shares equal to 1.0x base salary within 5 years; interim requirements apply .
- Anti-hedging and anti-pledging: executives are strictly prohibited from hedging and from pledging Elme shares or using them for margin loans .
- Options: Elme does not currently grant stock options or option-like awards .
Employment Terms
- Appointment: Hammond became an executive officer on September 19, 2023; currently SVP, CAO & Treasurer .
- Role scope: oversees day-to-day operations, strategic planning input, and accounting/HR/legal/treasury; interacts closely with the Compensation Committee as part of management input to compensation design .
- Severance Plan: executive severance plan provides severance based on base salary and years of service, plus employer portion of medical/dental/vision during severance; additive to other plan benefits unless CIC severance applies .
- Change-in-Control (CIC) Agreements: double-trigger; Hammond receives 24 months base salary continuation, annual bonus per average of prior three years or at least target, full COBRA cost up to 18 months, and immediate vesting of all unvested equity and deferred comp upon qualifying termination post-CIC .
- Clawback: mandatory recovery of incentive compensation upon restatement for material noncompliance; consistent with SEC/NYSE rules .
Potential payments (estimated as of 12/31/2024):
| Scenario | Cash Severance ($) | Unvested Equity ($) | SERP ($) | Total ($) |
|---|---|---|---|---|
| Without Cause / For Good Reason | 205,962 | 187,171 | 84,964 | 478,097 |
| Death or Disability | — | 187,171 | 84,964 | 272,135 |
| Change in Control and Termination | 1,008,000 | 236,126 | 84,964 | 1,329,090 |
| Change in Control (no termination) | — | 236,126 | — | 236,126 |
Deferred Compensation:
- Officers may defer salary and/or STIP; STIP deferrals convert to RSUs with a 25% RSU match vesting in three years; currently none of the NEOs participate .
Investment Implications
- Pay-for-performance alignment: Hammond’s 2024 STIP paid at 112.4% of target driven by Core FFO/share at target, NOI growth between threshold and target, leverage above target but within range, and strong initiative/individual scores; this supports near-term alignment and indicates operational execution contributed to cash incentives .
- Long-term alignment: LTIP is 60% relative TSR and 40% time-based equity; performance tracking was below threshold across components for 2025 and mixed for 2026 as of year-end 2024, pointing to uncertainty in realized long-term equity payouts and moderating longer-term alignment until TSR improves .
- Selling pressure and vesting cadence: Time-based awards vest annually each Dec 15 through 2026; combined with the policy prohibiting pledging/hedging, this schedule could create predictable windows for potential Form 4 activity, but prohibition reduces leverage-related selling pressure risk .
- Retention risk and CIC protection: Double-trigger CIC with 24 months salary and bonus continuity, plus full equity vesting, materially lowers retention risk during strategic transactions, but could elevate turnover if duties/comp were materially diminished post-deal, highlighting a balanced but meaningful safety net .
- Governance safeguards: Formal clawback, anti-hedging/anti-pledging, and executive ownership guidelines at 1.0x salary for SVPs mitigate misalignment and risk-taking; absence of option awards reduces incentive to chase short-term volatility .