Timothy Argo
Executive Vice President, Chief Strategy & Analysis Officer at MID AMERICA APARTMENT COMMUNITIES
Executive
About Timothy Argo
Timothy P. Argo, age 48, is EVP, Chief Strategy & Analysis Officer at MAA. He joined MAA in June 2002, rising through roles in underwriting, budgets/forecasting, financial planning, investor relations, and portfolio management; he became SVP, Chief Financial Planning Officer in 2017 and EVP, CSAO in 2022, leading asset management, strategy development/execution, and value creation. He holds a BBA in Accounting and an MBA (accounting concentration) from the University of Memphis and is a licensed CPA in Tennessee . Company performance used in incentive plans: Core FFO/share delivered at target in 2024, SS NOI growth between threshold and target, and FAD between target and maximum; 3‑year relative TSR under the 2022 LTIP paid 0 due to below-threshold performance .
MAA revenues and EBITDA:
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues ($USD) | $2,019,866,000* | $2,148,468,000* | $2,191,015,000* |
| EBITDA ($USD) | $1,172,882,000* | $1,254,759,000* | $1,243,153,000* |
| Metric | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|
| Revenues ($USD) | $549,832,000* | $549,295,000* | $549,902,000* | $554,373,000* |
| EBITDA ($USD) | $313,456,000* | $311,915,000* | $305,091,000* | $307,770,000* |
Values retrieved from S&P Global.*
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| MAA | EVP, Chief Strategy & Analysis Officer | 2022–present | Leads asset management, strategy development/execution, and value creation . |
| MAA | SVP, Chief Financial Planning Officer | 2017–2022 | Oversaw budgets/forecasting, financial planning, investor relations, portfolio management . |
| MAA | Various finance roles (underwriting acquisitions, planning) | 2002–2017 | Built analytical and planning capabilities across underwriting and portfolio functions . |
| MAA | EVP & CSAO assuming Asset Management | 2022 | Formal expansion to Asset Management operations . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| State of Tennessee | Licensed Certified Public Accountant | — | Technical accounting rigor supporting planning and investor communications . |
Fixed Compensation
Multi-year summary compensation table for Argo:
| Year | Salary ($) | Stock Awards ($) | Non-Equity Incentive Plan ($) | All Other Compensation ($) | Total ($) |
|---|---|---|---|---|---|
| 2023 | $375,692 | $412,506 | $368,815 | $40,813 | $1,198,326 |
| 2024 | $383,910 | $430,770 | $328,593 | $45,401 | $1,189,174 |
2024 target annual bonus (AIP) opportunity for Argo was 90% of salary (Core FFO 45%, SS NOI 22.5%, functional goals 22.5% of salary at target) . Actual AIP paid for 2024 was Core FFO $173,076; SS NOI $82,210; functional goals $73,306 .
Performance Compensation
2024 incentive structure, results, and vesting:
| Plan | Metric | Weighting/Target | Target/Range | Actual Result | Payout or Shares Earned | Vesting Terms |
|---|---|---|---|---|---|---|
| AIP (cash) | Core FFO per Share | 50% of AIP; 45% of salary at target | Threshold $8.68; Target $8.88; Max $9.08 | Per plan, performance at target | $173,076 cash | Cash paid; no vest . |
| AIP (cash) | SS NOI Growth | 25% of AIP; 22.5% of salary at target | Threshold -2.80%; Target -1.30%; Max 0.20% | Between threshold and target | $82,210 cash | Cash paid; no vest . |
| AIP (cash) | Functional Goals | 25% of AIP; 22.5% of salary at target | Individual goals set annually | 84.71% achievement | $73,306 cash | Cash paid; no vest . |
| LTIP (equity) | Service Shares | 24% of salary at target | 698 shares issued 1/4/2024 | Issued | $107,890 value in 2024 | Vest 33.33% annually over 3 years from 1/4/2024 . |
| LTIP (equity) | FAD Performance Shares | 36% of salary at target | Threshold 261; Target 1,047; Max 1,571 shares | Earned 1,185 shares for FY2024 | $183,165 value in 2024 | Vest 50% annually over 2 years from 4/1/2025 . |
| LTIP (equity) | 3‑Year Relative TSR | 60% of salary at target | Target vs Dow Jones U.S. Real Estate Apartments Index; next issuance 4/1/2027 if earned | 2022 LTIP TSR paid 0 (below threshold) | $0 earned for 2022 LTIP TSR | 2024–2026 TSR, if earned, vests immediately at issuance on 4/1/2027 . |
2024 direct compensation realized for Argo totaled $1,003,557 (salary + AIP + LTIP service + LTIP FAD; no TSR) with 1,883 restricted shares reflected; target total was $1,192,302 .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 16,593 shares; less than 1% of class; includes 27 shares in IRA and 772 ESOP shares . |
| Unvested Restricted Shares (12/31/2024) | 2022 LTIP: 90 service, 302 FAD ; 2023 LTIP: 372 service, 1,253 FAD ; 2024 LTIP: 698 service, 1,185 FAD . |
| Stock Ownership Guidelines | NEOs must own ≥2x base salary in shares/equivalents within 3 years; all NEOs in compliance . |
| Holding Requirements | Must retain ≥50% of net shares acquired via equity plans until retirement/termination/NEO designation ends; 100% compliance . |
| Hedging/Pledging | Prohibited: short sales, derivatives, margin use, pledges; no exceptions after Annual Meeting; no pledges by executives permitted . |
Employment Terms
| Provision | Detail |
|---|---|
| Employment Agreement | Only CEO had an employment agreement in 2024; Argo has none . |
| Change-in-Control (CIC) | Double-trigger CIC termination payment equals 2.99x base salary + 2.99x average annual cash bonus (prior two years); accelerated vesting of restricted stock and options; ability to receive cash for options; company pays legal fees . |
| Performance Awards on Sale | If terminated without cause after sale negotiations begin and sale closes within 90 days, maximum performance share awards for incomplete periods deemed earned . |
| Non-compete/Non-solicit | Two-year restriction post-CIC termination; cannot compete within five miles of any MAA property; scope covers competitive interests . |
| Clawback | Mandatory recoupment of incentive comp paid in prior three years if a material accounting restatement occurs . |
| Tax Gross-ups | No tax gross-ups for excess parachute payments . |
| Perquisites | No perquisites or personal benefits . |
Performance & Track Record
| Area | 2024 Outcome |
|---|---|
| Core FFO/share | Performed at target (AIP metric) . |
| SS NOI growth | Between threshold and target (AIP metric) . |
| FAD | Between target and maximum (LTIP metric) . |
| 3‑yr Relative TSR (2022 LTIP) | Below threshold; no payout . |
| Functional Goals (Argo) | 84.71% achievement; payout aligned to performance . |
Compensation Governance & Peer Benchmarking
- Compensation designed near 50th percentile vs peer group; Pearl Meyer advised on 2024 program; committee independence assessed; no overlapping metrics between AIP and LTIP, caps on awards, minimum one-year vesting on equity .
- Say‑on‑pay approval 91% in 2024; average approval 94% since 2011 .
Investment Implications
- Pay-for-performance alignment is robust: cash AIP keyed to Core FFO and SS NOI plus role-specific goals; equity LTIP tied to FAD and multi-year TSR, with clawback and strict holding requirements reducing misalignment risk .
- Vesting calendar implies potential supply from scheduled releases: service shares vest annually on 1/4 (2024 grant) and FAD performance shares on 4/1 (2025 issuance), which can create periodic insider selling windows even with 50% retention requirements; monitor Form 4s near these dates for selling pressure signals .
- Retention risk appears low: long tenure, meaningful unvested equity (approx. 3,900 shares unvested as of 12/31/2024) and generous double-trigger CIC protections (2.99x salary+bonus and accelerated vesting) support continuity, but TSR underperformance risk remains embedded in future LTIP outcomes .
- Alignment strong: no hedging/pledging, no perquisites or tax gross-ups, and ownership guidelines in full compliance; watch AIP/LTIP metric calibration each year for difficulty drift vs guidance to ensure continued rigor .