Samrat Sondhi
About Samrat Sondhi
Samrat Sondhi is Executive Vice President and Chief Digital Officer at Extra Space Storage (EXR), age 50, with tenure at the company since 2003 across revenue management, operations, marketing, and digital leadership roles, including COO (2013–2020) and CMO (2020–2024), before becoming Chief Digital Officer effective 2025 . He holds an MBA from Carnegie Mellon University and a B.S. in electronics from Pune University, India . Pay-for-performance alignment is anchored by annual bonuses and multi-year PSUs tied to Core FFO per share and relative TSR; for the 2022–2024 performance period, EXR’s TSR ranked 32nd percentile versus MSCI US REITs and cumulative Core FFO per share was $24.68 vs $25.57 target, leading to a 64.4% PSU payout (Sondhi vested 3,638 PSUs) . 2024 annual incentive achieved 99% overall based on Core FFO and strategic goals (growth, LSI merger synergies, people, balance sheet, discretion) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Extra Space Storage | Chief Operations Officer | Jan 2013 – Jun 2020 | Led nationwide operations; advanced revenue management and execution |
| Extra Space Storage | Chief Marketing Officer | Jun 2020 – Dec 2024 | Directed brand, demand generation, digital acquisition |
| Extra Space Storage | EVP & Chief Digital Officer | Jan 1, 2025 – Present | Oversees digital strategy and transformation initiatives |
| Extra Space Storage | Divisional VP; Sr. VP Revenue Management | Multiple years (dates not disclosed) | Led core markets; evolved industry pricing strategy |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Storage USA | Vice President, Revenue Management | Two years (dates not disclosed) | Pricing and revenue optimization in self-storage |
| Deloitte Consulting | Consultant | 2001–2002 | Strategy and operations consulting foundation |
Fixed Compensation
| Year | Salary ($) | Target Bonus ($) | Actual Bonus Paid ($) |
|---|---|---|---|
| 2024 | 510,000 | 510,000 (Target; Threshold 127,500; Max 637,500) | 506,175 |
| 2023 | 495,000 | Not disclosed | 438,075 |
| 2022 | 450,000 | Not disclosed | 562,500 (includes additional combination/acquisition bonus) |
Performance Compensation
2024 Annual Incentive Structure and Results
| Metric | Weighting | Target | Actual | Payout Component | Notes |
|---|---|---|---|---|---|
| Core FFO per share | 50% | Predetermined target (not disclosed here) | Achieved basis for overall payout | Included in 99% total payout | Core FFO is primary financial metric |
| Growth (investments, 3rd-party stores, fees) | 20% | $900mm investments; +175 stores; $142mm fees | $2.1bn investments; +367 stores; $182mm fees | 95% achievement for this component (aggregate of non-FFO goals) | Outperformed targets materially |
| LSI Merger Synergies | 30% | $100mm run-rate synergies | $83.4mm actual + other savings/revenues | 95% achievement (aggregate non-FFO goals) | Slight shortfall vs target |
| People | 15% | Engagement score 79; succession plans | Engagement 75; succession plans in place | 95% achievement (aggregate non-FFO goals) | Partial achievement |
| Balance Sheet | 15% | Maintain S&P BBB+ stable; seek Moody’s Baa1 upgrade; covenant compliance; 1–3 bonds | S&P BBB+ maintained; Moody’s credit watch positive; covenants met; three bonds executed | 95% achievement (aggregate non-FFO goals) | Executed three offerings |
| Committee Discretion | 20% | N/A | Considered strong execution | Included in 99% total payout | Discretionary overlay |
| Total Annual Incentive Payout | — | — | — | 99% | Sondhi actual payout $506,175 |
2022 PSU Program (Performance Period 1/1/2022–12/31/2024; settled Feb–Mar 2025)
| Metric | Weighting | Threshold | Target | Maximum | Actual Result | Achievement | Total Payout |
|---|---|---|---|---|---|---|---|
| TSR vs MSCI US REIT Index | 50% | Below 25th percentile | 50th percentile | ≥75th percentile | 32nd percentile | 63.8% | |
| Cumulative Core FFO per share | 50% | ≤$23.01 | $25.57 | ≥$28.13 | $24.68 | 65.0% | |
| Total PSU Achievement | — | — | — | — | — | — | 64.4% |
Vesting Outcomes for Sondhi:
- 2022 PSUs vested: 3,638 units; cash dividend equivalent paid: $68,976 (settled Feb/Mar 2025) .
- 2024 grants: PSUs target 12,347; max 24,694; grant date fair value $1,997,911; RSAs 4,116 shares; grant date fair value $590,070; RSAs vest ratably over four years . PSU 2024 grant components valued at $1,112,807 (TSR, Monte Carlo) and $885,105 (Core FFO, at target) .
Equity Ownership & Alignment
| Ownership Item | Value |
|---|---|
| Beneficially owned shares | 101,950 (<1%) |
| Restricted stock (unvested) | 12,247 |
| Shares subject to options | 2,625 |
| Shares subject to RSUs/RSAs | 32,782 |
| Shares subject to PSUs | 75,492 (at target; performance period incomplete where applicable) |
| Shares acquired on vesting (2025 reported) | 6,106; value realized $975,943 |
| Pledging | No pledging disclosed for Sondhi; Company not aware of any pledge that could result in change of control; one director (Woolley) has pledged shares unrelated to Sondhi |
| Ownership guidelines | Robust stock ownership requirements for executives (specific multiple not disclosed) |
Employment Terms
- No employment agreement; executives covered by Executive Change in Control Plan .
- Double-trigger severance (good reason resignation or termination without cause within 12 months after change in control): lump sum of two years base salary plus 2x greater of prior year bonus or average of previous three annual bonuses; two years of health benefit costs; six months outplacement; full vesting of restricted stock and non-qualified pension/deferred comp; accelerated PSU vesting (greater of target or prorated actual to date) .
- Retirement vesting provision: continued PSU vesting and immediate RSA vesting upon retirement if age 55 plus “age+service” sum ≥70, subject to committee conditions; none of NEOs currently qualify .
Change-in-Control and Termination Economics (as of 12/31/2024):
| Payment/Benefit (Sondhi) | Involuntary Termination Following CoC | Death/Disability |
|---|---|---|
| Cash Payment | $2,118,250 | — |
| Acceleration of Time-Based Equity (RSAs) | $1,205,327 | $1,205,327 |
| Acceleration of PSUs (at target; prorated for death/disability) | $3,293,594 | $1,580,025 |
| Benefits (health) | $45,133 | — |
Governance, Risk Controls, and Policies:
- Clawback policy on compensation; no tax gross-ups; no excessive perquisites; emphasis on pay for performance .
- Equity awards generally non-transferable and cannot be pledged during vesting; vesting ceases upon termination unless otherwise provided .
Compensation Mix (Multi-year)
| Year | Salary ($) | Non-Equity Incentive ($) | Stock Awards ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|
| 2024 | 510,000 | 506,175 | 2,587,981 | 134,986 | 3,739,142 |
| 2023 | 495,000 | 438,075 | 2,531,662 | 213,154 | 3,677,891 |
| 2022 | 450,000 | 562,500 | 1,554,432 | 182,985 | 2,890,542 |
Notes:
- 2022 non-equity incentive included an additional bonus for significant business combination/acquisition work .
- 2024 PSU grant date fair value components: TSR $1,112,807; Core FFO $885,105; total PSU $1,997,911; RSAs $590,070 .
Equity Grant Detail (2024)
| Award Type | Grant Date | Target Units/Shares | Max Units | Fair Value ($) | Vesting |
|---|---|---|---|---|---|
| RSAs | 3/1/2024 | 4,116 | — | 590,070 | Ratable over 4 years |
| PSUs (Total) | 3/1/2024 | 12,347 | 24,694 | 1,997,911 | 3-year performance to 12/31/2026 |
| PSU TSR Component | 3/1/2024 | — | — | 1,112,807 (valued at $180.27 per PSU via Monte Carlo) | TSR vs FTSE NAREIT Equity Index peer set |
| PSU Core FFO Component | 3/1/2024 | — | — | 885,105 (valued at $143.36 per PSU at target) | Cumulative Core FFO per share target |
Performance & Track Record Highlights
- Growth execution: $2.1bn investments approved; 367 gross stores added to 3rd-party management platform; $182mm fees and insurance revenue collected (2024 goals) .
- LSI merger integration: Achieved $83.4mm synergy run-rate plus other savings/revenues vs $100mm target .
- Balance sheet: Maintained S&P BBB+; Moody’s moved to credit watch positive; executed three public bond offerings; all covenant compliance .
- PSU outcomes: 2022–2024 cycle paid 64.4% of target (TSR 32nd percentile; cumulative Core FFO $24.68 vs $25.57 target) .
Employment & Contracts (Other Terms)
- No employment agreement; executives elected annually by board following shareholder meeting .
- PSU acceleration provisions on CoC, death/disability, and retirement thresholds (none currently eligible) .
Investment Implications
- Pay-for-performance alignment: High equity mix with PSUs tied to TSR and Core FFO; 2022 PSU payout at 64.4% indicates disciplined performance gating amid sector softness .
- Retention risk appears contained: Significant unvested RSAs (32,782) and PSUs (75,492) plus double-trigger severance economics offer strong retention incentives; CoC cash + equity acceleration for Sondhi totals ~$6.66mm at target assumptions, reducing near-term flight risk .
- Insider selling pressure: Recent vesting of 6,106 shares ($975,943 value) and 3,638 PSUs with cash dividends may create event-driven liquidity, but no option exercises reported and no pledging disclosed for Sondhi, moderating forced selling risks .
- Execution signal: 2024 bonus at 99% payout reflects management’s delivery on growth and financing despite partial LSI synergy shortfall, supporting confidence in digital and revenue management leadership under Sondhi .
- Governance quality: Independent compensation committee, clawback, no tax gross-ups, and robust ownership requirements are shareholder-friendly; absence of employment agreements enhances flexibility while standardized CoC plan sets clear economics .