Mike Lacy
About Mike Lacy
Mike Lacy, age 43, is Senior Vice President – Chief Operating Officer at UDR (appointed January 2025). He oversees property operations, information technology, and human capital, having joined UDR in November 2006 and progressed through revenue management and regional operations leadership before becoming SVP of Property Operations in 2019 and SVP–COO in 2025 . Under senior management in 2024, UDR delivered 18.3% total shareholder return (TSR), ~$1.65 billion in revenue, and $885.2 million of Funds From Operations as Adjusted (FFOA) (pay-for-performance table), with peer-leading operational margin and improved resident retention, reflecting execution in Lacy’s oversight areas .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| UDR | Senior Vice President – Chief Operating Officer | 2025–present | Expanded scope to include operations, IT, and human capital; aligned execution across innovation and workforce initiatives . |
| UDR | Senior Vice President – Property Operations | 2019–2024 | Led operations; contributed to margin expansion and retention improvements; prepared for COO transition . |
| UDR | Vice President – Property Operations | 2016–2018 | Drove operating plans and budgets; led teams and ROI programs across portfolio . |
| UDR | Vice President – Southern California Regional Manager | 2014–2016 | Managed major market portfolio; advanced revenue/expense discipline in high-rent markets . |
| UDR | Director of Pricing & Revenue Management | 2010–2014 | Built pricing/revenue systems; early contributor to self-service/analytics operating platform . |
| UDR | Operational Strategist / Senior Acquisitions Analyst | 2006–2010 | Supported acquisitions and operations analytics; foundation for later revenue leadership . |
| RedPeak Properties | Accountant | Pre-2006 | Early career in accounting; baseline financial skillset supporting later operating roles . |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $450,000 | $550,000 | $550,000 |
| Actual Short-Term Incentive (STI) Award ($) | $210,000 | $300,000 | $1,514,000 (elected 30% cash, 70% Class 2 LTIP Units) |
| Stock Awards – Grant Date Fair Value ($) | $1,133,725 | $1,893,492 | $1,938,325 |
| All Other Compensation ($) | $21,673 | $22,362 | $24,200 |
Performance Compensation
2024 Short-Term Incentive Program (Company metrics drive 70% of STI; Individual performance 30%)
| Metric | Weight (Lacy) | Threshold | Target | Maximum | Actual | Payout as % of Target |
|---|---|---|---|---|---|---|
| FFO as Adjusted per share | 30% | $2.36 | $2.42 | $2.48 | $2.48 | 200% |
| Transactions Index | 10% | 50% | 100% | 200% | 79% | 79% |
| Operations Index | 40% | 50% | 100% | 200% | 123% | 123% |
| GRESB Percentile | 10% | 50% | 33% | 20% | 32 (percentile) | 106% |
| Associate Engagement & DEI | 10% | 3.5 (50%) | 3.8 (100%) | 4.1 (200%) | 4.14 | 200% |
| 2024 STI Award (Company portion) | — | — | — | — | $1,034,000 | — |
| 2024 STI Award (Individual portion) | — | — | — | — | $480,000 | — |
| Total 2024 STI Award | — | — | — | — | $1,514,000 (30% cash, 70% Class 2 LTIP Units) | — |
2024 Long-Term Incentive Program (LTI) – Structure and Payouts
| LTI Metric | Weight | Threshold | Target | Max | 2024 Actual/Payout |
|---|---|---|---|---|---|
| 3-Year Relative Cumulative TSR vs Apartment Peers | 35% | -900 bps to Wavg TSR | Wavg TSR | +900 bps | TBD (measured Feb 2027) |
| 3-Year Relative Cumulative TSR vs NAREIT Equity REITs | 20% | -900 bps to Index | Index Return | +900 bps | TBD (measured Feb 2027) |
| 3-Year Relative Cumulative FFOA Growth vs Apartment Peers | 15% | -900 bps to Wavg | Wavg | +900 bps | TBD (measured Feb 2027) |
| 1-Year FFOA per share | 30% | $2.36 | $2.42 | $2.48 | $2.48 → 200% payout; vests 50% in Feb 2025 and 50% in Feb 2026 |
| Lacy’s 2024 LTI Award Value by Metric | Threshold | Target | Maximum | Actual (1-year FFOA) |
|---|---|---|---|---|
| 3-Year TSR vs Apartment Peers (35%) | $93,750 | $187,500 | $375,000 | TBD |
| 3-Year TSR vs NAREIT (20%) | $125,000 | $250,000 | $500,000 | TBD |
| 3-Year FFOA Growth vs Peers (15%) | $93,750 | $187,500 | $375,000 | TBD |
| 1-Year FFOA (30%) | $187,500 | $375,000 | $750,000 | $750,000 (200%) |
Notes: Lacy elected to receive LTI awards as Class 2 LTIP Units (performance-based, granted at maximum, vest only upon metric achievement; 3-year tranches measured and vest in Feb 2027) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Shares owned directly | 10,783 |
| Options exercisable | 1,190 options; exercise price $51.658 (per year-end table) |
| OP/LTIP Units redeemable into common (vested/eligible) | 451,323 share equivalents |
| Total beneficial ownership (direct + redeemable equivalents) | 462,106; <1% of common shares outstanding |
| Executive stock ownership guideline (SVP) | 20,000 shares; counts vested LTIP and OP Units |
| Guideline status | Beneficial equivalents (462,106) exceed 20,000 requirement |
| Hedging/short-term speculative transactions | Prohibited |
| Pledging | Prohibited without prior approval |
| Clawback policy | Recoupment policy compliant with SEC/NYSE rules (2023 update) |
Employment Terms
- Start date and tenure: Joined UDR November 2006; promoted to SVP–COO January 2025 .
- Contract/severance: No individual employment agreement disclosed for Lacy; UDR notes no contractual severance for named executive officers other than CEO .
- Change-of-control: Equity awards since 2021 have double-trigger vesting (CoC plus qualifying termination); estimated value for Lacy if CoC on 12/31/2024 with qualifying termination within 12 months: $8,231,925 (release of restrictions on awards) .
- Vesting schedules – key dates (unvested awards as of 12/31/2024):
- 1/2/2024 grant: 38,731 units vest 2/2025; 20,747 units vest 50% in 2/2025 and 50% in 2/2026; 54,326 units vest 2/2027 .
- 1/3/2023 grants: 3,567 units vest 2/2025; 54,351 units vest 2/2026 .
- 1/3/2022 grants: 14,424 units vest 2/2025; 2,296 stock vest 2/2025 .
Performance & Track Record
- Operational leadership outcomes: UDR achieved an approximately 200 bps controllable operating margin advantage vs peers and higher same-store EBITDA margins in 9 of 14 primary markets, reflecting operating discipline and platform leverage .
- Customer experience impact: Implementation of the Customer Experience Project since 2023 reduced annualized resident turnover by >4%, with NOI sensitivity of ~$3.5 million per 1% turnover reduction (potential $20–$35 million run-rate upside), specifically credited to Lacy among the operating leadership team .
- 2024 company performance context: TSR 18.3%, outperformed NAREIT Equity REIT Index by 960 bps; 23 consecutive months of reduced resident turnover through Feb 2025; expansion of redevelopment pipeline and sustainability achievements (LEED, Top Workplaces) .
Say-on-Pay & Compensation Governance
- Shareholder support: 2024 advisory vote approval at 81.54%; five-year average 83.55% .
- Program design: Independent Compensation Committee; significant at-risk pay, no tax gross-ups, double-trigger CoC for grants since 2021; executive ownership guidelines and recoupment policy .
Compensation Peer Group (for benchmarking context)
- UDR benchmarks executive compensation against diversified public REIT peers, including AVB, CPT, EQR, ESS, MAA and others; peer group's median equity market cap ~$15.8B vs UDR $15.5B at 12/31/2024 .
Investment Implications
- Alignment: Lacy’s election to take 70% of his 2024 STI in performance-based Class 2 LTIP Units and substantial OP/LTIP beneficial equivalents (462,106) reinforce long-term equity alignment and reduce near-term cash incentives, a positive for shareholder alignment .
- Vesting/supply calendar: Multiple vesting dates in Feb 2025, 2026, and 2027 could create incremental share supply via unit conversions; monitor Form 4s around these dates for selling pressure signals .
- Retention risk: Absence of individual severance (other than plan-level change-of-control double trigger) places retention emphasis on performance and equity value realization; estimated CoC value ($8.23M) for Lacy indicates meaningful, but not excessive, parachute economics .
- Execution risk: Multi-year LTI metrics (3-year TSR and FFOA growth vs peers) remain to be earned through 2027; 1-year FFOA component paid at max (200%) underscores near-term financial strength but leaves relative performance risk outstanding through the cycle .
- Operating edge: Documented margin advantage, improved retention, and IT/innovation transition under Lacy’s scope support ongoing NOI resilience; continued progress on sustainability and workforce metrics embed in STI and LTI constructs, aligning incentives with durable performance .