Arthur Suazo
About Arthur Suazo
Arthur X. Suazo (age 60) is Executive Vice President, Leasing at Hudson Pacific Properties (HPP). He joined HPP in July 2010 after prior leasing leadership roles at Arden Realty and Cushman & Wakefield and holds a B.A. in Business and Healthcare Management from California State University, Northridge . Company performance context: 2024 FFO per share (excluding specified items) was $0.53 and cumulative TSR (since 2019 baseline) stood at $10.16 on a $100 investment versus $68.44 for the peer group; net loss was $381.4 million in 2024, reflecting sector headwinds and portfolio repositioning . HPP executed 2.0 million square feet of leases in 2024 (nearly 20% higher YoY), a core area under Suazo’s remit .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Cushman & Wakefield | Director of Brokerage Services | 2008–2010 | Led brokerage services prior to joining HPP, complementing landlord leasing expertise |
| Arden Realty | Senior Portfolio Leasing Manager | 1997–2006 | Managed portfolio leasing for a major West Coast office REIT, building large-tenant and multi-market experience |
| Hudson Pacific Properties | EVP, Leasing | 2010–present | Oversees leasing strategy/execution across HPP’s office portfolio; HPP delivered 2.0M sf of leases in 2024 |
External Roles
| Organization | Role | Years | Focus |
|---|---|---|---|
| CareAmerica Federal Credit Union | Director (former) | n/a | Governance and oversight in financial services |
| Collegiate Search Youth Foundation | Director (former) | n/a | Non-profit, youth-focused initiatives |
Fixed Compensation
| Component | 2024 Terms | Notes |
|---|---|---|
| Base Salary | $578,000 | No increases to NEO cash compensation since 2022 (and unchanged for 2025) |
| Annual Bonus Target | 115% of base salary (threshold 69%, maximum 172.5%) | 80% tied to objective metrics, 20% discretionary/other factors |
| Actual 2024 Bonus Paid | $830,876 | Discretionary component paid at 100% of target based on 2024 performance |
Multi‑year compensation (grant-date reporting basis):
| Metric (USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary | $578,000 | $578,000 | $578,000 |
| Discretionary Bonus | $62,518 | $146,234 | $132,940 |
| Stock Awards (grant-date fair value) | $812,572 | $758,734 | $892,985 |
| Non-Equity Incentive Plan (annual bonus formulaic) | $250,073 | $564,995 | $697,936 |
| All Other Compensation | $8,804 | $9,646 | $11,579 |
| Total | $1,711,967 | $2,057,609 | $2,313,440 |
Performance Compensation
2024 annual cash incentive program design and outcomes:
| Metric | Weight | Threshold | Target | Maximum | Actual/Payout Basis |
|---|---|---|---|---|---|
| Quarterly FFO/share (1Q–4Q) | 25% (6.25% each qtr) | $0.15 / $0.15 / $0.08 / $0.09 | $0.17 / $0.17 / $0.10 / $0.11 | $0.19 / $0.19 / $0.10 / $0.13 | Actual: $0.17 / $0.17 / $0.10 / $0.11; overall FFO portion capped at target if full-year FFO/share < $1.05 |
| Leasing Volume (000s sf) | 25% | 1,498.5 | 1,665.0 | 1,831.5 | Achieved 2,029.3 (above max) |
| Avg. Annual Net Debt / Avg. Annual Consolidated Gross Assets | 20% | 39% | 38% | 37% | Achieved 36.5% (beat max) |
| Corporate Responsibility Scorecard | 10% | 6 of 10 | 8 of 10 | 10 of 10 | Achieved 9 of 10 |
| Other Key Corporate & Individual Factors | 20% | Committee assessment | Committee assessment | Committee assessment | Paid at 100% given 2024 execution |
Equity incentives and vesting/holding:
- 2024 LTIP Units: $1,125,000 grant value to Suazo, vesting in three equal annual installments on Jan 1, 2025, Jan 1, 2026, and Jan 1, 2027; subject to an additional three-year post‑vesting holding period .
- 2023 LTIP Units (unvested at year-end 2024): 42,823 units vest in equal installments on Jan 1, 2024, 2025, 2026 .
- Performance Units: Suazo holds 83,333 target 2023 Performance Units (performance period ends Dec 31, 2025); 2024 Performance Units were granted only to CEO/President/CFO, not to Suazo .
Program alignment safeguards:
- Mandatory post‑vest holding periods (3 years on time‑vested awards; 2 years on any earned PSUs for top NEOs) and clawback policy adopted Oct 2023 covering Section 16 officers .
- Anti‑hedging/anti‑pledging policies; double‑trigger CIC provisions; no excise tax gross‑ups (280G cutback applies) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 380,713 shares/units; <1% of outstanding |
| Unvested Time‑Vested LTIP Units | 42,823 (2023 award) and 120,837 (2024 award) outstanding as of 12/31/2024 |
| Performance Units (Unearned) | 83,333 (2023 target units; performance ends 12/31/2025) |
| Stock Ownership Guidelines | NEOs required to hold ≥3x base salary |
| Guideline Compliance | As of 1/1/2025, all NEOs except the CFO were in compliance (CFO out of compliance solely due to stock price fluctuations) |
| Hedging/Pledging | Prohibited for executives and directors |
Vesting cadence and potential selling pressure: Unvested LTIP Units from 2023 vest on Jan 1, 2026; 2024 LTIP Units vest on Jan 1 of 2026 and 2027, all subject to a three‑year post‑vest holding period, limiting near‑term sellable supply and mitigating selling pressure dynamics .
Employment Terms
| Provision | Key Terms |
|---|---|
| Agreement Term | New NEO employment agreements effective Jan 1, 2025; initial 5‑year term with automatic one‑year renewals unless earlier terminated |
| Bonus Eligibility | Annual discretionary cash bonus based on company and individual performance (per Compensation Committee) |
| Severance (No CIC) | If terminated without cause or resigns for good reason: 1x (salary + average bonus), pro‑rated bonus, accelerated vesting of time‑based awards; health benefits continuation (illustrative as of 12/31/2024: cash $1,246,198; health $18,273; equity acceleration $780,055) |
| Severance (CIC + Qualifying Termination) | Double‑trigger; 2x (salary + average bonus), pro‑rated bonus, time‑based equity accelerated; health benefits continuation (illustrative as of 12/31/2024: cash $2,492,396; health $18,273; equity acceleration $780,055) |
| Equity on CIC (No Termination) | Outstanding awards assumed/substituted; if not, vest in full (earned at ≥ target for performance awards, unless specified otherwise) |
| Performance Unit Treatment | 2023 PSU: if CIC/qualifying termination before 12/31/2025, vest greater of target or actual through event; 2024 PSU (not applicable to Suzo) has separate rules |
| Clawback | Applies to erroneously paid incentive compensation to Section 16 officers for restatements (policy adopted Oct 2023) |
| Covenants | Customary confidentiality and non‑solicitation provisions |
Investment Implications
- Pay-for-performance alignment: Suazo’s cash bonus is predominantly tied to objective operating/financial goals (leasing volume, leverage, FFO/share), which exceeded targets in 2024; longer vesting and mandatory holding periods constrain near‑term monetization of equity, aligning incentives with multi‑year value creation .
- Retention risk appears moderate: Time‑based LTIP overhang with extended post‑vest holding and double‑trigger CIC terms support retention; severance at 1x (non‑CIC) / 2x (CIC) is shareholder‑friendly relative to typical REIT NEO packages, limiting pay‑for‑failure risk .
- Selling pressure outlook: Upcoming vest dates (Jan 1, 2026 and 2027) for 2023/2024 LTIP Units exist, but the three‑year post‑vest holding period meaningfully delays liquidity, mitigating short‑term insider selling risk .
- Governance safeguards: Anti‑hedging/pledging, clawback, no tax gross‑ups, and double‑trigger CIC treatment reduce red‑flag risk; say‑on‑pay support (91.3% in 2024) indicates shareholder acceptance of the program .
- Execution linkage: As EVP Leasing, Suazo’s influence is most directly tied to leasing outcomes; 2024 leasing volume outperformance (2.0M sf, +~20% YoY) and pipeline commentary underscore operational traction in his remit, a positive signal for incentive payout justification and forward NOI recovery levers .
Compensation Peer Group and Say‑on‑Pay
- 2024 Peer Group (no changes): BDN, CUZ, DEI, ESRT, HIW, JBGS, KRC, PGRE, PDM, SLG, VNO; median EV $6.6B vs HPP $5.7B (12/31/2024) .
- Say‑on‑Pay (2024 meeting): 91.3% of votes cast in favor .
Related Policies and Red Flags
- Policies: Anti‑hedging/pledging; clawback; stock ownership guidelines (NEOs: 3x salary); majority‑independent board committees; double‑trigger CIC .
- Red flags: None observed specific to Suazo; Company‑wide, the Compensation Committee canceled 2024 performance unit awards for top three executives in 2025 (accelerating $14.3m expense), but Suazo was not a recipient of those awards; the Committee did not adopt a performance-based equity program for 2025 (contextual, not Suazo‑specific) .
Appendix: Detailed Equity and Ownership Snapshot
| Category | Quantity/Status (as of 12/31/2024) |
|---|---|
| Unvested LTIP Units (2023 grant) | 42,823; vest Jan 1, 2024/2025/2026 |
| Unvested LTIP Units (2024 grant) | 120,837; vest Jan 1, 2025/2026/2027; 3‑year post‑vest holding |
| 2023 Performance Units | 83,333 target; performance period ends 12/31/2025 |
| Beneficial ownership | 380,713 shares/units (<1%) |
HPP 2024 performance reference points:
- Leasing: 2.0M sf, nearly 20% YoY; several notable large leases closed .
- FFO per share (ex-specified items): $0.53 in 2024; HPP’s net loss: $381.4M .
- TSR context: $10.16 value of $100 investment (since 2019 baseline) vs peer group $68.44 .