John Murray
RMR GROUPAbout John Murray
John G. Murray is 64 and has served as Executive Vice President of RMR LLC since 2001, after joining RMR and affiliates in 1993; he became President and CEO of Sonesta International Hotels Corporation in April 2022 and serves on Sonesta’s board, dedicating most of his FY2024 time to Sonesta per RMR’s compensation overview . He is a managing trustee of Service Properties Trust (since 2018) and previously served as President and CEO of Service Properties Trust through March 31, 2022, and as President and CEO and managing trustee of Industrial Logistics Properties Trust from 2018 through March 2022 (managing trustee until June 2022); earlier he worked at Fidelity Brokerage Services Inc. and Ernst & Young LLP, and is active in the Urban Land Institute and AHLA Hotel Investment Roundtable . RMR’s FY2024 compensation program emphasized discretionary bonuses driven by holistic performance of RMR and its clients, with base salaries capped at $375,000 and increased equity awards to offset lower bonuses in a challenging CRE and interest-rate environment .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| RMR LLC | Senior Vice President | 1993–2001 | Senior leadership at RMR across portfolio and client management |
| RMR LLC | Executive Vice President | 2001–present | Long-tenured EVP; key operating executive across RMR clients |
| Service Properties Trust (SVC) | President & COO; later President & CEO | 1996–Mar 31, 2022 | Led SVC for decades; currently a Managing Trustee since 2018 |
| Industrial Logistics Properties Trust (ILPT) | President & CEO; Managing Trustee | 2018–Mar 2022; Trustee until Jun 2022 | Led ILPT and served on board during tenure |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Sonesta International Hotels Corporation | President & CEO; Director | Apr 2022–present | Leads Sonesta; primary time allocation in FY2024 per RMR |
| Service Properties Trust (SVC) | Managing Trustee | 2018–present | Governance role at SVC |
| Urban Land Institute | Development Council Member | Not disclosed | Industry leadership participation |
| American Hotel & Lodging Association | Hotel Investment Roundtable Member | Not disclosed | Sector engagement and information flow |
Fixed Compensation
| Year | Base Salary ($) | Bonus ($) | Stock Awards ($) | All Other Comp ($) | Total ($) |
|---|---|---|---|---|---|
| 2024 | 66,346 | 450,000 | 789,965 | 94,295 | 1,400,606 |
| 2023 | 75,000 | 450,000 | 946,275 | 138,216 | 1,609,491 |
| 2022 | 225,000 | 1,050,000 | 1,081,440 | 111,742 | 2,468,182 |
- Base salary for all named executive officers was capped at $375,000 in FY2024; for Mr. Murray, Sonesta paid 80% through June 30, 2024 and 90% thereafter, with RMR paying the remainder, reflected in the $66,346 RMR-paid salary shown above .
- Mr. Murray’s cash compensation (salary/bonus) amounts above represent RMR-paid portions and exclude cash paid by Sonesta; Sonesta also made 401(k) matches not included here .
Performance Compensation
- Annual cash bonuses are discretionary with no pre-set performance targets; they are determined via Compensation Committee evaluation of RMR and client performance and individual contributions; Mr. Murray’s bonus is determined by Sonesta’s board, with RMR paying a pro-rata portion .
- Equity awards are time-vested: one fifth vests on the grant date, and one fifth on each of the next four anniversaries, with accelerated vesting upon certain termination or change-in-control events per the equity plan .
| Component | Metric | Weighting | Target | Actual/Payout | Vesting |
|---|---|---|---|---|---|
| Discretionary Annual Bonus (FY2024) | Holistic evaluation of RMR/client performance and individual contributions | Not disclosed | Not applicable | $450,000 (RMR-paid portion) | Cash (no vesting) |
| Equity Awards (FY2024) | Discretionary equity awards (RMR Class A) | Not disclosed | Not applicable | 6,124 RMR shares; $149,977 grant-date fair value | 20% at grant; 20% annually over 4 years |
FY2024 equity awards across RMR clients to Mr. Murray:
| Company | Grant Date | Shares (#) | Grant-Date Fair Value ($) |
|---|---|---|---|
| RMR | 9/11/2024 | 6,124 | 149,977 |
| Diversified Healthcare Trust (DHC) | 9/11/2024 | 44,776 | 150,000 |
| Industrial Logistics Properties Trust (ILPT) | 9/11/2024 | 10,330 | 49,997 |
| Office Properties Income Trust (OPI) | 9/11/2024 | 23,474 | 50,000 |
| Service Properties Trust (SVC) | 9/11/2024 | 56,433 | 249,998 |
| Service Properties Trust (SVC) | 6/14/2024 | 18,255 | 89,997 |
| Seven Hills Realty Trust (SEVN) | 9/11/2024 | 3,687 | 49,996 |
Stock vested in FY2024:
| Metric | FY2024 |
|---|---|
| Shares vested (#) | 5,625 |
| Value realized ($) | 141,280 |
Equity Ownership & Alignment
| Item | Value |
|---|---|
| Beneficial ownership of RMR Class A shares | 32,627; less than 1% |
| Stock ownership guidelines | Not disclosed in proxy |
| Pledging/Hedging | Insider Trading Policy governs trading and blackout periods; pledging not specifically disclosed |
Outstanding unvested RMR equity at FY2024 year-end for Mr. Murray:
| Grant Date | Unvested Shares (#) | Market Value ($) |
|---|---|---|
| 9/11/2024 | 4,899 | 124,337 |
| 9/13/2023 | 3,600 | 91,368 |
| 9/14/2022 | 2,400 | 60,912 |
| 9/15/2021 | 1,000 | 25,380 |
Potential accelerated vesting upon a Termination Event (as of 9/30/2024):
| Item | Value |
|---|---|
| Shares vested upon Termination Event (#) | 11,899 |
| Value at $25.38 per share ($) | 301,997 |
Employment Terms
- No employment agreements: RMR discloses it has no employment agreements with named executive officers; equity awards provide for accelerated vesting upon certain termination or change in control events .
- Change-in-control: The equity plan provides double-trigger acceleration (termination without cause within two years post-change-in-control) for unvested awards; performance conditions deemed achieved at target on such events .
- Clawback/forfeiture: Awards subject to RMR’s compensation recovery policy; forfeiture/repurchase rights for misconduct or violation of noncompetition/non-solicitation/confidentiality agreements or termination for cause .
- Base salary cap & timing: Base salary capped at $375,000 for FY2024 and FY2025; salaries typically adjusted October 1 (fiscal year start) .
- Time allocation economics: Sonesta paid 80% of Mr. Murray’s cash compensation through June 30, 2024 and 90% thereafter; RMR paid the remainder, with bonuses determined by Sonesta’s board .
Investment Implications
- Pay-for-performance structure with discretionary bonuses and increased FY2024 equity awards indicates reliance on committee judgment and long-term alignment, but absence of formulaic metrics (TSR/EBITDA) limits external predictability of payouts .
- Vesting over five years with unvested 11,899 RMR shares at FY-end and change-in-control acceleration creates potential future supply and sensitivity to corporate events; FY2024 realized vesting was 5,625 shares ($141k) .
- Ownership alignment is modest at <1% of RMR Class A shares, which may dilute direct shareholder alignment; pledging not disclosed; Insider Trading Policy and recoupment provisions mitigate some governance risks .
- Retention risk appears managed via time-based vesting and client-linked roles; RMR has no employment agreements or severance multiples, but double-trigger equity acceleration supports retention through corporate transitions .