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Alan Gold

Executive Chairman at INNOVATIVE INDUSTRIAL PROPERTIES
Executive
Board

About Alan Gold

Alan Gold is IIPR’s co‑founder and Executive Chairman, serving in this role since the company’s formation in June 2016; he is 64 and holds a BS in Business Administration and an MBA from San Diego State University . Under his leadership, IIPR delivered 2024 revenue of $308.5 million, AFFO of $256.1 million, AFFO per diluted share of $8.98, portfolio occupancy of 96.6%, and declared $7.52 in dividends per share, while upsizing the revolving credit facility to $87.5 million . Cumulative TSR value for a $100 investment since 2020 stood at $118 in 2024 versus $123 for the MSCI U.S. REIT Index, with pay-versus-performance disclosures indicating alignment through variable pay and equity outcomes .

Past Roles

OrganizationRoleYearsStrategic Impact
IQHQ, Inc.Executive ChairmanDec 2018–Dec 2024Led life science REIT strategy during growth phase; governance oversight
BioMed Realty Trust (NYSE: BMR)Chairman, President & CEO2004–Jan 2016Built and exited to Blackstone, scaling life science REIT platform
Bernardo Property AdvisorsChairman, President & CEOAug 1998–Aug 2004Led predecessor platform prior to BMR formation
Alexandria Real Estate Equities (NYSE: ARE)Co‑founder, President & Director1994–Aug 1998Co‑founded leading life science REIT and grew early operations
GoldStone Real Estate Finance & InvestmentsManaging Partner1989–1994Ran real estate and mortgage investment partnership
Northland Financial CompanyAsst. VP, Commercial Real Estate1989–1990Commercial mortgage banking experience
John Burnham CompanyReal Estate Investment Officer1985–1989Regional real estate investment roles

External Roles

OrganizationRoleYearsCommittees / Focus
CatchMark Timber Trust (NYSE: CTT)DirectorDec 2013–Jun 2016Nominating & Compensation committees
American Assets Trust (NYSE: AAT)DirectorAug 2011–Mar 2013Audit committee
Salk Institute for Biological StudiesBoard of TrusteesN/AGovernance of a leading research institution

Fixed Compensation

Component202220232024
Base Salary ($)1,126,000 1,238,600 1,300,000
Cash Bonus ($)2,133,501 2,346,851
Non‑Equity Incentive ($)2,165,416
Stock Awards ($)12,500,687 3,500,038 3,500,164
All Other Comp ($)9,150 9,900 10,350
Total ($)15,769,338 7,095,389 6,975,930
Annual Incentive Design (2024)Target (% of Base)Actual Payout Mechanics
Executive Annual Incentive175% Formulaic objectives (50% of plan) + Individual/Strategic goals (50%); overall payout 95% of target approved Feb 2025

Performance Compensation

MetricWeightingThresholdTargetMaxActual (2024)Payout (% of Target)Contribution to Total Payout
AFFO per diluted share12.5% $8.35 $8.79 $9.23 $8.98 122% ~15%
New Investments ($mm)12.5% 50 75 100 73.2 96% ~12%
Line of Credit Capacity ($mm)12.5% 30 45 60 87.5 150% ~19%
Occupancy Percentage12.5% 90% 92% 94% 96.6% 150% ~19%
Individual/Strategic Goals50% N/ASubjectiveN/AAssessed below target~30% of this component Drives overall 95% payout

Notes:

  • 2022 PSUs with TSR metrics failed to vest and were forfeited entirely at 12/31/2024, demonstrating downside alignment .

Equity Awards and Vesting

Grant YearGrant DateTypeShares/UnitsGrant‑Date Fair Value ($)Vesting Schedule
2024Jan 17, 2024RSUs38,124 3,500,164 (at $91.81 close) 1/1/2025, 1/1/2026, 1/1/2027 (ratable)
2023Jan 2023RSUs/Restricted StockN/A3,500,038 Three equal annual installments
20222022PSUs (TSR) + RSUsN/A12,500,687 PSUs forfeited; RSUs time‑based
Outstanding Unvested (12/31/2024)UnitsMarket Value ($)Release Dates
RSUs (Gold)64,574 4,303,211 (at $66.64) 28,636 on 1/1/2025; 23,230 on 1/1/2026; 12,708 on 1/1/2027
Stock Vested in 2024Units VestedValue Realized ($)
Alan Gold20,132 2,029,708

Additional mechanics:

  • RSUs receive dividends/dividend equivalents and vest over multi‑year periods; 2024 grants vest in three equal annual installments .
  • No stock options were outstanding or exercised in 2024 .
  • Gold elected to defer settlement of RSUs pursuant to the Nonqualified Deferred Compensation Plan (NQDC) .

Equity Ownership & Alignment

Ownership Detail (as of Apr 14, 2025)Shares/UnitsNotes
Total Beneficial Ownership348,368; 1.2% of shares outstanding Based on 28,011,229 shares outstanding + vested RSUs count
Directly Held213,308 Common shares in own name
Spousal Lifetime Access Trust (SLAT)56,500 For spouse and adult child
Vested RSUs in NQDC78,560 Deferred settlement units
Unvested RSUs Excluded81,376 Unvested as of proxy date
Pledging/HedgingNone known; no arrangements (incl. pledges) that could result in change of control

Director and executive ownership guidelines:

  • Non‑employee directors must hold stock valued at no less than 5× annual cash retainer; employee directors (Gold) do not receive director compensation; executive officer ownership guidelines not disclosed in the proxy .

Employment Terms

TermProvision
Agreements effectiveGold’s severance & change‑of‑control agreement effective Jan 18, 2017; expire Dec 31, 2025 with automatic 3‑year renewals unless notice given 90 days prior
Severance (no CoC; Qualifying Termination)Cash = (base salary + average annual cash bonus past 3 years) × 3; plus 18 months of COBRA premiums; pro‑rata vesting of time‑based awards; PSUs pro‑rata based on achievement
Double‑trigger (within 2 years post CoC)Same cash/benefits; immediate vesting of time‑based awards; PSUs vest at greater of actual or target
Qualifying RetirementUnvested restricted stock/RSUs vest at retirement
Restrictive covenants1‑year non‑solicitation of employees/prospects; confidentiality; post‑termination consulting up to 20 hours/month for 6 months
DefinitionsCause/Good Reason/Change of Control/Qualifying Termination definitions per agreement
Termination Scenario (as of 12/31/2024)Severance ($)Medical ($)Equity Acceleration ($)PSUs ($)Total ($)
Qualifying Termination (no CoC)10,545,768 22,998 3,054,936 13,623,702
Qualifying Termination (within 2 years post CoC)10,545,768 22,998 4,303,211 14,871,977
Qualifying Retirement4,303,211 4,303,211
Death/Disability4,303,211 4,303,211

Board Governance

  • Role/Independence: Gold serves as Executive Chairman (employee director) alongside CEO Paul Smithers; three independent directors comprise the Board’s audit, compensation, and nominating/governance committees, all of which are fully independent .
  • Leadership: Board separates Chair and CEO roles; vice chairman (independent) acts as liaison and presides executive sessions when Chair not present; Board annually reviews leadership structure and engages in risk oversight .
  • Committee membership, chairs, meetings (2024):
    • Audit: Stecher (Chair), Curran, Kreitzer; 4 meetings .
    • Compensation: Kreitzer (Chair), Shoemaker, Stecher; 4 meetings .
    • Nominating & Corporate Governance: Shoemaker (Chair), Kreitzer, Curran; 2 meetings .
  • Director Compensation: Non‑employee directors receive $75,000 cash retainer (vice chair $150,000), plus ~$160,079 in equity (vice chair $200,099) and modest chair fees; employee directors (Gold) receive no additional pay for director service .

Board service history and dual‑role implications:

  • Gold has served on IIPR’s Board since formation in June 2016 and is Executive Chairman, implying non‑independence; committees remain fully independent, with vice chair providing lead‑independent functionality and executive session leadership, which mitigates—but does not eliminate—potential concentration of influence in the dual role .

Compensation Committee Analysis

  • Composition/Chair: Independent directors Kreitzer (Chair), Shoemaker, Stecher .
  • Consultant: FW Cook advised on tying cash incentives to pre‑set objectives beginning in 2024 .
  • Peer group: Committee does not benchmark to a peer group given IIPR’s unique regulated cannabis REIT focus, opting for risk‑adjusted target opportunities .
  • Say‑on‑pay feedback: Average >93% support during 2020–2023; support fell to 73% in 2024, prompting shift from 100% discretionary annual incentives to 50% formulaic objectives and 50% qualitative components in 2024 and ongoing consideration of more performance‑based long‑term incentives .

Investment Implications

  • Alignment and payout discipline: High variable pay and equity mix; 2022 PSUs fully forfeited on TSR underperformance, evidencing real downside alignment; 2024 annual incentives paid at 95% of target amid headwinds and tenant defaults .
  • Retention and potential selling pressure: Meaningful unvested RSUs scheduled to release each January 1 (2025–2027) may create calendar‑linked supply; RSU settlement deferral in the NQDC plan can moderate near‑term selling; robust severance (3× salary+bonus) with double‑trigger CoC vesting supports retention .
  • Governance risk mitigation: Executive chair structure balanced by fully independent committees and an empowered vice chair; continued investor focus warranted given 2024 say‑on‑pay slippage and industry cyclicality .
  • Operational drivers to monitor: AFFO/share targets and occupancy remain core incentive levers; watch credit facility capacity and new investment cadence, which directly influence annual incentive payouts and near‑term cash compensation .