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Lawrence Ricketts Jr

Executive Vice President and Chief Operating Officer at ONE LIBERTY PROPERTIES
Executive

About Lawrence Ricketts Jr

Executive Vice President and Chief Operating Officer of One Liberty Properties, Inc. (OLP). Tenure and progression: Vice President (1999), Executive Vice President (2006), Chief Operating Officer (since 2008), with over $3 billion of transaction experience in acquisitions, dispositions, and financings . Company performance context: OLP’s cumulative total shareholder return index stood at 97.47 in 2024 (from a $100 base), and net income was $30.4 million in 2024, $29.6 million in 2023, and $42.2 million in 2022 . Operational execution under management included 27 lease actions across >1.0M sf and physical occupancy >99% in December 2024, alongside $44.7M of acquisitions and $18.0M net gains on 2024 asset sales .

Past Roles

OrganizationRoleYearsStrategic Impact
One Liberty Properties, Inc.Vice President1999–2006Early leadership roles in portfolio operations and transactions
One Liberty Properties, Inc.Executive Vice President2006–2008Elevated responsibility across portfolio and capital decisions
One Liberty Properties, Inc.Chief Operating Officer2008–PresentOversight of operations; >$3B transactions in acquisitions, dispositions, financings

External Roles

No external directorships or outside public company roles disclosed for Ricketts in OLP filings.

Fixed Compensation

Metric2021202220232024
Base Salary ($)$520,000 $559,000 $586,950 $610,428
Cash Bonus ($)$65,000 $70,000 $70,000 $75,000
All Other Compensation ($)$52,789 $56,388 $63,305 $63,552

Notes:

  • 2025 base salary set at $647,054 (approved late 2024) .
  • Bonuses are discretionary under a Performance-based Cash Bonus Program (no fixed target %) informed by FFO/AFFO, occupancy, leasing activity, acquisitions/dispositions, and portfolio management; 2024 decisions cited 27 leases, >99% physical occupancy, $44.7M buys, ~$18.0M net gains from 12 asset sales .

Performance Compensation

Equity Awards – Grants and Structure

Award TypeGrant DateQuantityGrant-Date Fair Value ($)Key Terms
Restricted Stock (for 2023 performance)1/12/202417,100$369,3605-year cliff vest; dividends paid during vesting; forfeiture on certain terminations
RSU – TSR component (2024 cycle)7/16/20246,000 (max)$91,260Vests based on average annual TSR over 7/1/2024–6/30/2027; 6% min, 11% max; pro-rata between
RSU – ROC component (2024 cycle)7/16/20246,000 (max)$67,430Vests based on average annual ROC over 7/1/2024–6/30/2027; 6% min, 8.75% max; pro-rata between
Restricted Stock (for 2024 performance)1/14/202517,175$438,3065-year cliff vest; dividends paid during vesting

Performance Plan Metrics and Weighting (2024 Cycle)

MetricWeightingThresholdMaximumDefinition
Return on Capital (ROC)50%Avg annual ROC ≥ 6% Avg annual ROC ≥ 8.75% Adjusted FFO ÷ Average Capital (equity plus D&A adjusted for intangibles), as defined in award agreement
Total Stockholder Return (TSR)50%Avg annual TSR ≥ 6% Avg annual TSR ≥ 11% Average of annual TSR over the measurement period per award agreement

Progress indicator: As of 12/31/2024, RSUs granted during the three years ended 12/31/2024 were tracking at 76% of full payout; final vesting depends on performance through each cycle’s end .

Vesting Schedule – Ricketts (Unvested Awards at 12/31/2024)

AwardVesting DatesAmount per DateConditions
Restricted StockJan 2025, 2026, 2027, 2028, 202917,100 shares each year5-year cliff; continuous service; accelerated on death/disability/retirement/CoC
RSUsJun 2025, 2026, 2027Up to 12,000 shares each year (subject to performance)3-year measurement cycles; performance/market conditions; dividend equivalents paid only on vested RSUs

Equity Ownership & Alignment

Ownership Metric (as of 3/19/2025)Value
Beneficial Ownership (shares)202,335; <1% of outstanding
Unvested Restricted Stock85,500 shares; $2,329,020 market value at $27.24
Unvested RSUs (assumes max vest)36,000 shares; $980,640 market/payout value at $27.24
Stock Ownership GuidelinesFull-time NEOs must hold ≥ 2x base salary; all NEOs satisfied as of 12/31/2024
Hedging/PledgingHedging, short sales, speculative transactions prohibited; no pledging disclosure provided

Alignment signals:

  • Equity awards represented 46.6% of Ricketts’ 2024 base annual compensation; equity comprised 88.8% of performance/incentive compensation for him in 2024 .
  • Anti-hedging and clawback policies in place; clawback extends to incentive comp including vested/unvested equity in specified circumstances .

Employment Terms

TermProvision
Employment AgreementNone; at-will employment
SeveranceNone; no cash severance arrangements
Change-of-Control (CoC)Restricted stock fully vests on CoC; RSUs fully vest if CoC occurs after cycle mid-point (18 months), pro-rata vesting if on or before mid-point; regardless of performance conditions
ClawbackRecovery of incentive comp upon restatement due to material noncompliance; forfeiture upon termination for cause; subject to NYSE-required policy
Tax Gross-UpsNone; excise tax cutback to optimize after-tax payout under 280G/4999
Ownership GuidelinesFull-time NEOs: 2x base salary; compliance achieved
Anti-HedgingProhibits short sales, hedging/monetizing transactions, speculative trading

Performance & Track Record

Metric202220232024
Net Income ($ millions)42.2 29.6 30.4
TSR Index (Value of $100)67.82 72.90 97.47
Operational highlights~28 leases; occupancy >98% (Nov) ~27 leases; occupancy >99% (Dec); $44.7M acquisitions; ~$18.0M net gains on 12 asset sales

Additional experience: “Over $3 billion” in transactions (acquisitions, dispositions, financings) credited to Ricketts .

Compensation Structure Analysis

  • Cash vs Equity mix: Base salary up 4.0% in 2024; cash bonus up 7.1%; equity grants up 17.7% (aggregate grant-date value) vs 2023—continuing emphasis on equity-based pay .
  • Equity design: Shift toward RSUs and restricted stock rather than options; five-year cliff for restricted stock and performance/market-conditioned RSUs (three-year cycles) .
  • Governance protections: No employment agreements, no severance, no tax gross-ups; no repricing or cash-out of underwater awards without shareholder approval under 2025 Plan .
  • Say-on-Pay support: 93.9% approval in June 2024; 81.5% in June 2023—committee viewed as supportive of pay practices .

Risk Indicators & Red Flags

  • Related party ecosystem: OLP pays Majestic Property (affiliated with vice chairman) for services; affiliated transactions present potential conflicts; board/audit oversight in place .
  • Hedging: Prohibited, reducing misalignment risk .
  • Pledging: No disclosure (monitor for any future reports) .
  • Change-of-control acceleration: Full/pro-rata vesting on CoC can create event-driven payout sensitivity .
  • Repricing: Explicitly prohibited without shareholder approval .

Equity Ownership & Vesting Detail (Ricketts)

CategoryQuantityValuation Basis
Beneficially owned202,335 shares; <1%As of 3/19/2025
Unvested restricted stock85,500 shares$27.24/share at 12/31/2024
Unvested RSUs (max)36,000 shares$27.24/share at 12/31/2024 (assumes full vest)
2024 RSU split6,000 TSR; 6,000 ROCGrant-date fair values $91,260 (TSR), $67,430 (ROC)
Restricted stock vest timing17,100/year (2025–2029)Cliff vest per grant

Say-on-Pay & Shareholder Feedback

  • 2023 Say-on-Pay: 81.5% approval .
  • 2024 Say-on-Pay: 93.9% approval .
  • Compensation Committee: Independent; chaired by J. Robert Lovejoy; met 5 times in 2024 .

Investment Implications

  • Alignment and retention: High equity weighting (restricted stock + RSUs), ownership guideline compliance, and anti-hedging reinforce alignment; multi-year vesting supports retention but creates predictable vest dates (17,100 RS shares annually through 2029; RSU cycles through 2027) that can be monitored for potential insider selling pressure .
  • Event risk: Change-of-control acceleration of equity (full/pro-rata) may elevate event-driven payout sensitivity; no cash severance mitigates parachute concerns, with 280G cutback in place .
  • Execution track record: Strong operational execution (high occupancy, active leasing, accretive recycling) and significant transaction experience underpin COO’s performance incentives tied to ROC and TSR; RSUs tracking at ~76% of full payout as of 12/31/2024 signals progress but remains contingent on cycle completion .
  • Governance watchpoints: Related-party services with affiliates persist; continue monitoring audit oversight and any pledging disclosures for alignment risks .