Colliers Inks Extended Deal with CEO Jay S. Hennick
Colliers International Group Inc. Extends Contract with CEO
Colliers International Group Inc. (NASDAQ: CIGI, TSX: CIGI) has announced a significant development regarding its leadership strategy. The company has successfully extended the term of its management services agreement with Jay S. Hennick, the Global Chairman and Chief Executive Officer and its largest shareholder. This agreement, which was initially set to conclude in April 2026, has now been pushed back to January 1, 2029.
Jay Hennick's Impact on Colliers
Since joining Colliers following its acquisition in 2004, Mr. Hennick has played a crucial role in the company’s trajectory. His adept leadership has led to extensive global expansion and the diversification of its business model. Colliers has successfully added multiple growth avenues while achieving a remarkable 70% increase in recurring earnings. When Colliers transitioned to a standalone public company in 2015, its market capitalization rose from about US$1.5 billion to an impressive US$6.1 billion by the end of 2023.
New Incentive Plan for Leadership
As part of the amended agreement, Colliers has established a new performance-based long-term incentive plan. This initiative aligns a significant portion of Mr. Hennick's compensation with specific growth targets tied to the company's market capitalization. The plan involves the granting of 428,174 cash-settled performance units that will vest based on achieving predetermined performance lines through to January 1, 2029. This transformative plan ensures that Mr. Hennick's incentives are directly linked to the company’s expanding footprint in the market.
Market Capitalization Growth Objectives
For Mr. Hennick to fully benefit from the performance units, Colliers’ market capitalization needs to reach approximately US$12.3 billion—double the valuation recorded at the end of 2023. However, there are provisions for a portion of these units to vest if lower market capitalization thresholds are met during the agreement's duration. It’s important to highlight that these performance units do not grant Mr. Hennick shareholder rights and are not eligible for share settlement.
Board's Confidence in Leadership
Jack Curtin, the lead director at Colliers, expressed enthusiasm about Mr. Hennick's continued leadership. Curtin stated, "We are excited about securing Jay's continued leadership, vision and tireless devotion to Colliers’ growth and value creation over the next five years. This new long-term performance-based compensation plan positions us favorably for long-term shareholder returns.”
Looking Ahead
Colliers is committed to transparency regarding its performance-based long-term incentive plan, promising to share more detailed information in the management information circular during the upcoming annual meeting of shareholders. The focus remains on providing sustained value for investors while fostering the company's ongoing success.
About Colliers International
Colliers is recognized as a leading diversified professional services company specializing in investment management. With operations spread across 68 countries, Colliers employs approximately 22,000 talented professionals who collaborate to deliver expert real estate and investment insights to clients. Over the past 29 years, under its experienced leadership, Colliers has consistently generated compound annual investment returns of around 20% for its shareholders. Reporting annual revenues exceeding $4.4 billion and managing assets valued at $96 billion, Colliers continues to channel its expertise to maximize property and real asset potentials, ultimately driving success for clients, investors, and its workforce.
Frequently Asked Questions
What is the duration of the extended contract for Jay Hennick?
The contract has been extended until January 1, 2029.
What new plan has been implemented for Mr. Hennick's compensation?
Colliers has introduced a performance-based long-term incentive plan that ties a portion of Mr. Hennick's compensation to growth targets related to market capitalization.
How much has Colliers’ market capitalization grown since 2015?
Colliers’ market capitalization has increased from approximately US$1.5 billion to US$6.1 billion as of December 31, 2023.
Are the performance units tied to shareholder rights?
No, the performance units do not provide Mr. Hennick with any rights as a shareholder.
Who is the lead director of Colliers?
Jack Curtin is the lead director at Colliers International Group Inc.
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