Million-Dollar Deal
Post Properties releases details of John Williams’ settlement. Almost a year after Post Properties founder John A. Williams lost his second very public fight with the apartment REIT he started, the company released the details of the settlement agreement with the former chairman.
According to Post’s 10-K, which was filed in April, Williams will receive $400,000 annually, plus company-paid health benefits and the use of a private aircraft, until 2013. Williams was also released from his noncompete agreement with Atlanta-based Post, which is known for building, owning, and operating luxury apartments primarily in the Southeast.
It’s a sweet deal for Williams, says Paul Hodgson of The Corporate Library in Portland, Maine, where he specializes in executive compensation. “I try look at this from the shareholders’ point of view to see if they are getting any value,” he explains. “If there’s no consultancy, then there’s very little justification” for 10-year, multi-million dollar settlement. “It seems somewhat expensive.”
Others say it’s worth it. “Certainly there is a cost to this agreement, but the battles with Williams had become such a distraction,” says Craig Leupold, a principal with Green Street Advisors. “This is something that management needed to put behind them … They’re certainly on track to getting where they need to be as an operating company, rather than playing defense.” —Alison Rice