ESG Puts Its Stamp on CRE

As co-portfolio manager for the real estate securities group at Neuberger Berman, Brian Jones talks to companies in which the firm is considering investing. These include REITs and the questions he has for them go far beyond earnings forecast and operating fundamentals.

He wants to know, for example, is there separation between the CEO and chairman’s role. Also, what is the alignment of compensation to total shareholder returns. “Senior management compensation should be closely tied to absolute total shareholder returns and shareholder returns relative to appropriate compensation,” he says.

There’s more. He wants to know the length of service for the board members and their compensation. Most important of all, he looks to see if the REIT has opted out of the anti-takeover defenses in the Maryland Unsolicited Takeover Act.