Executive compensation in Los Angeles’ commercial real estate sector has seen a significant shift, highlighted by a substantial pay cut for Victor Coleman, the head of Hudson Pacific Properties (HPP). Details revealed in the company’s 2025 proxy indicate a sharp move away from the high-value grants seen in previous years.
Shareholder Pressure and the HPP Pay Cut
In 2024, Victor Coleman’s total compensation was valued at approximately $25 million. This figure included $22 million in upfront equity awards designed to encourage retention and stock price recovery, marking a threefold increase despite HPP reporting a $364 million loss that year.
By 2025, shareholder sentiment led to a drastic correction. The company’s proxy stated that investors expressed concern over compensation levels given the current market conditions and company performance.
Coleman’s 2025 total compensation dropped to less than $3 million. He voluntarily forfeited his 2024 performance-based equity awards and received no replacement awards during a year when the REIT posted a $572 million loss.
The board of directors has further tightened the belt for 2026. The front-loaded equity structure has been eliminated in favor of more rigorous performance requirements and reduced target compensation.
Comparative CEO Compensation in Los Angeles
While HPP saw a downturn, other L.A. REITs showed varying trends. Jordan Kaplan of Douglas Emmett saw his total compensation valued at $9 million, representing no material change.
In contrast, Macerich CEO Jackson Hsieh saw his compensation increase to $15 million, up from $14 million in 2024. This rise was driven by a higher cash bonus and base salary, and included a $140,000 perk for the use of a private aircraft.
Rexford’s Strategic Dispositions
Rexford reported a strong first quarter with a net income of $88 million, compared to $68 million during the same period last year.
The industrial REIT has been active in offloading assets, disposing of five properties for $127 million and purchasing $200 million of its own common stock in the first quarter. Most recently, the company sold a Brea property for $16.5 million to a merchant builder at roughly $56 per square foot.
This specific sale allows Rexford to save an estimated $31 million in anticipated development costs. While executives have remained tight-lipped on specifics, the company aims to sell between $400 million and $500 million in real estate this year.
The Battle for Studio Control
Netflix is currently in talks to acquire the Radford Studio Center from Goldman Sachs following a default on a billion-dollar mortgage by Hackman Capital Partners. The lot’s restriction to studio-use has significantly limited the pool of potential buyers.
Industry sources suggest that a Netflix acquisition could signal a desire for more control over their production infrastructure. This move may have broader implications for Hudson Pacific Properties, as Netflix is one of HPP’s largest studio and office tenants.
With Coleman’s lease with Netflix expiring in five years and a nearly $1 billion loan maturity with Blackstone arriving this summer, a strategic shift could occur. Netflix may potentially buy the real estate they currently occupy or acquire it from Hudson’s lender.
In other industry news, shareholders have approved the takeover of Warner Bros. By Paramount, a move involving companies that hold significant real estate footprints in Los Angeles.
Frequently Asked Questions
Why was Victor Coleman’s pay reduced in 2025?
The reduction followed concerns from investors regarding the level of compensation in relation to company performance and prevailing market conditions.
What are the current goals for Rexford’s real estate sales?
Rexford intends to sell between $400 million and $500 million worth of real estate this year.
Why is the buyer pool for the Radford Studio Center limited?
The lot is restricted to studio-use, meaning a buyer would either need to be a studio operator or possess the political clout to change the zoning for mixed-use development.
Do you believe executive compensation should be strictly tied to annual profit and loss, or is retention-based pay necessary during market downturns?
