Christopher Kollme
About Christopher Kollme
Christopher A. Kollme (age 54) is Executive Vice President — Investments at Piedmont Office Realty Trust (PDM), responsible for acquisitions and dispositions; he has served in this role since October 2021, after joining Piedmont in 2017 as EVP — Capital and Strategy . Prior to Piedmont, he was Managing Director & Head of Real Estate Investment Banking at SunTrust Robinson Humphrey, with earlier roles at Morgan Keegan (MD & Group Head, Real Estate IB) and Duke Realty (VP, Acquisitions) . Pay-for-performance alignment is driven by: (1) annual cash STIC metrics (Core FFO/share vs budget, leverage, same-store NOI, leasing volumes), and (2) 3-year PSU awards tied to TSR percentile vs an office REIT peer group; recent PSU cycles show payout factors of 63% for 2020–22 (31st percentile) and an estimated 53% for 2021–23 (27th percentile), with 2022–24 estimated 93% (47th percentile) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Piedmont Office Realty Trust | EVP — Investments | Oct 2021–present | Lead acquisitions/dispositions; portfolio strategy |
| Piedmont Office Realty Trust | EVP — Capital & Strategy | 2017–Oct 2021 | Advanced strategic initiatives; capital raising; banking relationships |
| SunTrust Robinson Humphrey | Managing Director & Head, Real Estate IB | Not disclosed (pre-2017) | Originated advisory/capital raising for public/private real estate clients |
| Morgan Keegan | Managing Director & Group Head, REIB | Not disclosed | Led real estate investment banking group |
| Duke Realty | Vice President, Acquisitions | Not disclosed | Corporate acquisitions leadership |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Not disclosed in company proxy biographies | — | — | No current public company directorships disclosed |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $363,750 | $373,750 | $378,750 |
| Stock Awards ($) | $366,748 | $633,889 | $412,442 |
| Non-Equity Incentive Plan Compensation ($) | $340,000 | $340,000 | $389,204 |
| All Other Compensation ($) | $27,250 | $30,250 | $30,500 |
| Total ($) | $1,097,748 | $1,377,889 | $1,210,896 |
Notes:
- Beginning in 2023, the Committee conformed the Deferred Stock Unit component to market practice by decreasing DSU allocation and granting discretionary time-based awards early each year (no immediate vesting) .
Performance Compensation
STIC (Short-Term Incentive) Metrics and Outcomes
| Metric | Target | Actual | Over/(Under) vs Target |
|---|---|---|---|
| 2024 Core FFO/share relative to budget | $1.48 | $1.49 | +0.7% |
| 2024 Net Debt to Core EBITDA (x) | 6.8x | 6.8x | Met |
| 2024 Same-Store NOI (cash) | 0.75% | 2.6% | +1.85% |
| 2024 New SF Leasing (000s) | 900 | 1,014 | +12.7% |
| 2024 Renewal SF Leasing (000s) | 938 | 1,379 | +83.9% |
| 2024 Strategic Priorities (incl. ESG) | Qualitative | Target | Target |
| 2023 Core FFO/share relative to budget | $1.80 | $1.74 | (3.3%) |
| 2023 Net Debt to Core EBITDA (x) | 6.4x | 6.4x | Met |
| 2023 Same-Store NOI (cash) | 1.2% | 2.2% | +1.0% |
| 2023 New SF Leasing (000s) | 700 | 820 | +17.1% |
| 2023 Renewal SF Leasing (000s) | 900 | 1,407 | +56.3% |
| 2023 Strategic Priorities (incl. ESG) | Qualitative | Target | Target |
STIC mechanics: quantitative metrics from the annual plan; qualitative “Strategic Priorities (incl. ESG)” assessed by CEO/Board; Committee may adjust targets for events (e.g., 2024 target FFO/share adjusted −$0.02 for unbudgeted bond offering) .
Long-Term Incentive: PSUs (3-year TSR vs peer group)
| Performance Period | TSR Percentile (as of stated date) | Payout (% of Target) |
|---|---|---|
| 2020–22 | 31st | 63% (Actual) |
| 2021–23 | 27th | 53% (Estimated) |
| 2022–24 | 47th | 93% (Estimated) |
PSU payout scale: 0% below 25th percentile; 50% at 25th; 100% at median; 200% at ≥75th; linear interpolation in-between; above-target payouts can be reduced up to 30% if absolute TSR is negative .
Equity Grant Details and Vesting
| Component | Grant Date | Shares/Value | Vesting Terms |
|---|---|---|---|
| 2023 LTIC — PSU Target (EVP Kollme) | Feb 23, 2023 | 22,175 target shares | Earned in 2026 based on 2023–25 TSR percentile |
| 2023 LTIC — Deferred Stock Units | Feb 23, 2023 | 14,784 shares ($140,004) | 4-year annual vesting starting grant anniversary |
| 2022 LTIC — Deferred Stock Units (granted in 2023) | Feb 13, 2023 | 15,403 shares ($162,502) | 25% immediate; remaining 75% vests in 25% increments over next 3 years |
| 2024 Deferred Stock Units (new grant) | Feb 20, 2024 | 22,901 DSUs | 4 equal annual installments from grant anniversary |
Stock options: PDM has never granted stock options to NEOs .
Equity Ownership & Alignment
| Date (as of) | Shares Beneficially Owned | % of Outstanding | Notes |
|---|---|---|---|
| Feb 28, 2019 | 4,665 | <0.01% | No pledging; hedging/pledging prohibited |
| Feb 29, 2020 | 22,101 | 0.02% | No pledging; hedging/pledging prohibited |
| Feb 28, 2023 | 73,326 | 0.06% | Ownership guidelines met |
| Feb 29, 2024 | 80,508 | 0.06% | Ownership guidelines met |
- Shares vested during 2023: 18,854 vested for Kollme; value realized $223,304 (incl. dividend equivalents) .
- Ownership guidelines: Other EVPs must hold the lesser of 2x base salary or 30,000 shares; executives must hold shares from incentive plans for at least one year after vesting; hedging and pledging prohibited, and none of the executives’ shares are pledged .
- Recent Form 4 activity: 22,901 DSUs granted on Feb 20, 2024 (4-year equal vesting); on Feb 10, 2025, 2,744 shares (final 25% of a prior award) vested and were settled in PDM common stock .
Employment Terms
| Provision | Current Structure | Detail |
|---|---|---|
| Employment agreement | Annual auto-renewal (entered 2019) | Includes clawbacks; severance; renews annually unless 90-days prior notice |
| Clawbacks | Dodd-Frank/NYSE and Sarbanes-Oxley §304 | Recovery of excess incentive comp upon restatement; Section 304 reimbursements for certain misconduct-related restatements |
| Severance plan (2024 update) | Executive Severance Plan | Cash payment and acceleration of time-based equity upon termination without cause or resignation for good reason; 1-year non-compete; no tax gross-ups |
| Change-in-control (CIC) equity treatment | Convert PSUs to time-based at ≥target of actual vs target; vest upon qualifying termination | Performance awards convert at CIC; remain time-based unless qualifying termination; time-based awards accelerate per plan |
| DSU vesting on events | DSUs vest at CIC or retirement (≥62), death, disability | Applies broadly to employees including NEOs |
Potential Payments (as of Dec 31, 2024)
| Scenario | Total ($) | Unvested Equity Value Included ($) |
|---|---|---|
| Termination Without Cause | $1,712,927 | $906,963 |
| Resignation With Good Reason | $1,712,927 | $906,963 |
| Termination Due to Change-in-Control | $3,101,369 | $1,489,441 |
| Death or Disability | $1,712,927 | $906,963 |
Historical reference: Total payout estimates for Kollme were $1,019,217 (2022) and $1,080,883 (2023) across comparable scenarios (inclusive of unvested equity values noted therein) . Earlier agreements provided 1x salary+average bonus for Kollme, plus pro-rated bonus and 1 year of medical benefits in certain terminations; DSUs vest upon CIC; PSUs pro-rata vest upon termination without cause/resignation for good reason/retirement (≥62) .
Compensation Peer Group (PSUs)
The performance share program peer group for recent cycles included office-focused REITs such as Brandywine, Corporate Office Properties Trust, Cousins, Douglas Emmett, Empire State Realty Trust, Franklin Street Properties, Highwoods, Hudson Pacific, JBG SMITH, Kilroy, Orion Office REIT, Paramount Group, and Vornado, with substitutions vs prior peers due to acquisitions or business model changes (e.g., Columbia Property Trust acquired; Veris/Elme transitioned to multifamily) .
Say-on-Pay & Governance Practices
- Say-on-pay: Stockholders approved NEO compensation with ~96% support at the 2020 annual meeting ; recent proxies recommend “FOR” approval (2022, 2023) .
- Compensation committee uses independent consultants (Ferguson Partners Consulting “FPC”), with annual independence assessments; FPC advised on 2024 comp plans and Executive Severance Plan; no conflicts identified .
- Best practices: No options repricing or tax gross-ups; hedging/pledging prohibited; strong stock ownership guidelines; capped incentives and clawbacks .
Risk Indicators & Red Flags
- Hedging/pledging: Prohibited; none of the executive officers’ shares are pledged .
- Options repricing: Prohibited; historically no stock options granted to NEOs .
- Related-party transactions: None requiring disclosure since Jan 1, 2023 .
- Executive transitions: CFO change in late 2024; severance agreements executed for outgoing executives; Kollme remains EVP — Investments .
Investment Implications
- Alignment: Kollme meets ownership guidelines and is required to hold vested shares for at least one year, with PSU payouts tied to TSR vs peers—fostering multi-year alignment .
- Near-term selling pressure: Time-based DSUs granted in Feb 2024 vest annually (2025–2028); standard tax-withholding on vest dates may create mechanical insider dispositions but not discretionary selling; recent vesting of 2,744 shares occurred on Feb 10, 2025 .
- Pay-for-performance: 2024 STIC metrics were mostly at/above target (FFO, NOI, leasing), aligning with his higher 2024 cash incentive; but recent PSU cycles show below-median TSR (2020–22, 2021–23), dampening long-term equity payouts—suggesting balanced incentives and moderated equity windfalls .
- Retention economics: Updated Executive Severance Plan provides meaningful protection (double-trigger equity mechanics; ~$1.71M cash-equity value for non-CIC termination; ~$3.10M in CIC termination for Kollme), lowering voluntary departure risk without aggressive multiples or tax gross-ups .
Additional references: Stock vested counts and values, absence of options, STIC/PSU structures, employment agreement renewals and clawbacks are documented throughout PDM’s 2021–2025 proxies .