Steve Bakke
About Steve Bakke
Stephen “Steve” Bakke is Executive Vice President and Chief Financial Officer of Postal Realty Trust (PSTL), appointed September 22, 2025 and effective on or about November 5, 2025; age 40, B.S. in Operations Research & Information Engineering from Cornell University, CFA charterholder, and Nareit member . Prior roles include SVP, Corporate Finance at Realty Income; SVP, Capital Markets at Site Centers; and investor/research analyst roles at Surveyor Capital, Third Avenue Management, and Green Street Advisors—spanning capital markets, FP&A, investor relations, derivatives, and asset management . Company context: PSTL revenues rose from $38.3m in FY21 to $73.1m in FY24, with EBITDA expanding from ~$18.3m to ~$38.2m; TSR (value of a $100 initial investment) was $106.94 in 2023 and $102.55 in 2024 .
Company performance during FY 2021–FY 2024:
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|
| Revenues ($USD) | $38,276,000 | $50,876,000 | $60,970,000 | $73,143,000 |
| EBITDA ($USD) | $18,287,000* | $25,151,000* | $31,133,000* | $38,212,000* |
| EBITDA Margin (%) | 45.79%* | 47.16%* | 48.87%* | 50.03%* |
| Net Income ($USD) | $2,055,000 | $3,854,000 | $3,709,000 | $6,596,000 |
Values retrieved from S&P Global.*
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Realty Income Corp. (NYSE: O) | SVP, Corporate Finance | Not disclosed | Oversaw capital markets, FP&A, investor relations; derivatives expertise |
| Site Centers Corp. (NYSE: SITC) | SVP, Capital Markets | Not disclosed | Led capital markets; asset management; investor relations |
| Surveyor Capital | Public equity investor | Not disclosed | Buy-side investing perspective |
| Third Avenue Management | Public equity investor | Not disclosed | Buy-side REIT investment insights |
| Green Street Advisors | Research Analyst | Not disclosed | Sell-side/independent REIT analytics |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| CFA Institute | CFA Charterholder | Not disclosed | Technical finance accreditation |
| Nareit | Member | Not disclosed | Industry network and best practices |
Fixed Compensation
| Component | Detail |
|---|---|
| Base Salary | $275,000 (Offer Letter) |
| 2025 Bonus | $100,000 cash, payable by February 27, 2026 |
Performance Compensation
| Metric | Weighting | Target | Threshold | Maximum | Payout Status | Vesting |
|---|---|---|---|---|---|---|
| Annual Incentive (2026) | n/a | 110% of base salary target | n/a | n/a | Not yet determined | Annual bonus, metrics set by Compensation Committee |
| Long-term Incentive (2026) | n/a | 120% of base salary target | n/a | n/a | Not yet determined | Under 2019 Equity Incentive Plan |
| Absolute TSR PSU (Company framework) | 40% of LTI | 8% CAGR | 6% CAGR | 11% CAGR | Ongoing | 3-year performance period |
| Relative TSR PSU vs MSCI US REIT Index (Company framework) | 15% of LTI | 55th percentile | 30th percentile | 75th percentile | Ongoing | 3-year performance period |
Notes: PSTL’s LTI framework is 55% performance-based (40% absolute TSR, 15% relative TSR) and 45% time-based; structure confirmed for 2025 awards .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Initial Ownership (Form 3) | No securities beneficially owned as of 10/27/2025 |
| Grants (Form 4 filed 11/06/2025) | 33,569 LTIP Units (in lieu of cash comp), vest 12/31/2026; 33,569 LTIP Units (AOI award), vest 10/27/2033; total 67,138 units |
| Grant Pricing Basis | VWAP for 10 trading days preceding 11/05/2025 = $14.8945 (for cash-in-lieu LTIPs); AOI LTIPs priced $0 (additional award) |
| Conversion | LTIP Units convertible (upon vesting and conditions) into OP Units; OP Units redeemable for cash or, at issuer’s election, Class A common stock one-for-one |
| Ownership Guidelines | NEOs must hold 3x annual base salary; compliance within 5 years of becoming subject; OP Units and LTIP Units count; stock options and performance-based awards do not |
| Hedging/Pledging | Hedging and pledging prohibited (with very limited pre-approved exceptions) |
| Clawback | Incentive compensation recoupment policy aligned to SEC/NYSE rules; recovery upon restatement even absent misconduct |
Vesting schedules and insider selling pressure:
| Award | Quantity | Vest Date | Notes |
|---|---|---|---|
| LTIP Units (cash-in-lieu) | 33,569 | 12/31/2026 | Shorter-term vest; potential event for liquidity consideration |
| LTIP Units (AOI additional) | 33,569 | 10/27/2033 | 8-year cliff vest per AOI structure |
AOI Program deferral in offer letter:
| Item | Detail |
|---|---|
| Bonus Deferral Amount | $500,000 granted at Hire Date, deferred into AOI with 8-year cliff; Bonus Deferral Amount vests on 12/31/2026; AOI LTIP/restricted stock from deferral vests on 8-year anniversary of Hire Date |
Employment Terms
- At-will employment; can be terminated with or without cause, with or without notice, by either party .
- 2026 eligibility: annual bonus target 110% of salary; LTI target 120% of salary; participation in ESPP, health, 401k, life/disability benefits; AOI participation (up to 100% of cash compensation can be deferred into LTIP/Restricted Stock) .
- Anti-hedging/anti-pledging policy, stock ownership policy, and clawback policy apply to executive officers (company-wide governance) .
- No severance/change-of-control economics disclosed in Bakke’s 8-K/Offer Letter; company noted no additional plan or award was entered into beyond those described .
Additional Company Performance Context (TSR and 2025 operating update)
| Metric | 2023 | 2024 |
|---|---|---|
| TSR – Value of initial $100 investment | $106.94 | $102.55 |
Q3 2025 results (context as Bakke assumed CFO around earnings timing): revenue +24% YoY; net income to common $3.8m ($0.13/diluted share); FFO $11.0m ($0.34), AFFO $10.8m ($0.33); raised FY25 AFFO guidance to $1.30–$1.32/diluted share; dividend $0.2425/share .
Compensation Structure Analysis
- Increased alignment via AOI deferrals: $500k AOI deferral with 8-year cliff and additional AOI-derived units vesting at 8 years; combined with company’s 55% performance-based LTI framework, this increases at-risk pay and retention .
- Performance metrics emphasize shareholder returns (absolute and relative TSR), with target payout at 8% absolute TSR CAGR and 55th percentile relative TSR; no payout below threshold .
- Governance safeguards: clawback policy, anti-hedging/pledging, and ownership guidelines (3x salary for NEOs within 5 years) mitigate misalignment risks .
Risk Indicators & Red Flags
- Related-party transactions: none involving Bakke disclosed; company not aware of any requiring Item 404(a) disclosure .
- Hedging/pledging: prohibited, reducing alignment risk .
- Severance/change-of-control for Bakke: not disclosed in Offer Letter; at-will status suggests no guaranteed severance—neutral to shareholder risk pending future disclosure .
Compensation Peer Group (Benchmarking)
Peer group used by PSTL (13 equity REITs) includes BRT Apartments, City Office REIT, Clipper Realty, Community Healthcare Trust, CTO Realty Growth, Farmland Partners, Getty Realty, Global Medical REIT, Global Self Storage, NETSTREIT, One Liberty Properties, Orion Office REIT, Plymouth Industrial REIT; committee uses peers as reference (does not target a specific percentile) . Relative TSR PSUs benchmark against MSCI US REIT Index with 55th percentile at target .
Say-on-Pay & Shareholder Feedback
- 2025 proxy included say-on-pay and say-on-frequency proposals; voting recommendations “FOR” and “1 YEAR” respectively . Specific vote outcomes not disclosed in excerpts provided.
Investment Implications
- Alignment: Long-dated AOI 8-year cliff and immediate LTIP grants (with a 2026 vest tranche) align the CFO with shareholders and create retention incentives; anti-hedging/pledging and ownership policy further enhance alignment .
- Near-term selling pressure: No initial ownership then LTIP grants; the 12/31/2026 vest (33,569 LTIPs) is a watchpoint for potential liquidity events; the 2033 AOI vest is long-dated and reduces near-term supply .
- Performance leverage: PSTL’s LTI heavily tied to absolute and relative TSR, indicating pay-for-performance alignment; CFO’s capital markets background may support funding and growth as PSTL continues portfolio expansion and AFFO trajectory .
- Retention risk: At-will employment and no disclosed severance may reduce guaranteed payouts on departure; however, AOI long-vesting creates material forfeiture risk on voluntary exit, supporting retention .
S&P Global disclaimer: EBITDA values and EBITDA margin percentages marked with an asterisk (*) are values retrieved from S&P Global.