Colliers extends contract with Global Chairman & CEO
01 October 2024 - 9:00PM
Colliers International Group Inc. (TSX, NASDAQ: CIGI) is pleased to
announce that it has extended the term of the existing management
services agreement with its Global Chairman and Chief Executive
Officer and largest shareholder, Jay S. Hennick, to January 1,
2029. The agreement was due to expire in April 2026.
Mr. Hennick has been instrumental in shaping
Colliers since its initial acquisition in 2004. Under his
leadership, the company has expanded operations globally,
diversified its business adding new growth engines while increasing
recurring earnings to 70%. Since Colliers became a standalone
public company in 2015, its market capitalization has grown from
approximately US$1.5 billion to US$6.1 billion as of December 31,
2023.
In connection with this extension, Colliers has
created a new performance-based long term incentive plan that ties
a significant proportion of Mr. Hennick’s total compensation to the
achievement of certain market capitalization-based growth targets.
Under this arrangement, Mr. Hennick has been granted a total of
428,174 cash-settled performance units that are subject to the
satisfaction of certain performance-based vesting conditions during
the period ending January 1, 2029. To the extent incentives are
earned, Colliers will be obligated to make a one-time cash payment
equal to the number of vested units multiplied by the twenty-day
volume-weighted average trading price of the Colliers subordinate
voting shares at such time. For the full amount of the units
to vest, Colliers’ market capitalization would have to increase to
approximately US$12.3 billion, an amount that is double Colliers’
market capitalization as at December 31, 2023. A smaller
portion of the performance units may vest and be paid if certain
lower market capitalization hurdles are satisfied during the term.
The performance units cannot be share settled and do not give Mr.
Hennick any rights as a shareholder of Colliers.
“On behalf of the Board, we are excited about
securing Jay’s continued leadership, vision and tireless devotion
to Colliers’ growth and value creation over the next five years,”
said Jack Curtin, Colliers’ lead director. “With the
implementation of this new long-term performance-based compensation
plan, we believe that Colliers will be best positioned to continue
delivering exceptional shareholder returns for many years to
come.”
Further details regarding this performance-based
long term incentive plan will be provided in the management
information circular for the next annual meeting of shareholders in
early 2025.
About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading
diversified professional services and investment management
company. With operations in 68 countries, our 22,000
enterprising professionals work collaboratively to provide expert
real estate and investment advice to clients. For more than 29
years, our experienced leadership with significant inside ownership
has delivered compound annual investment returns of approximately
20% for shareholders. With annual revenues of more than $4.4
billion and $96 billion of assets under management, Colliers
maximizes the potential of property and real assets to accelerate
the success of our clients, our investors and our people. Learn
more at corporate.colliers.com,
X @Colliers or LinkedIn.
Forward-looking Statements
This press release includes forward-looking
statements. Forward-looking statements include the Company’s
financial performance outlook and statements regarding goals,
beliefs, strategies, objectives, plans or current expectations.
These statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results to be materially
different from any future results, performance or achievements
contemplated in the forward-looking statements. Such factors
include: economic conditions, especially as they relate to
commercial and consumer credit conditions and consumer spending,
particularly in regions where our business may be concentrated;
commercial real estate property values, vacancy rates and general
conditions of financial liquidity for real estate transactions;
trends in pricing and risk assumption for commercial real estate
services; the effect of significant movements in average
capitalization rates across different property types; a reduction
by companies in their reliance on outsourcing for their commercial
real estate needs, which would affect revenues and operating
performance; competition in the markets served by the Company; the
ability to attract new clients and to retain major clients and
renew related contracts; the ability to retain and incentivize
producers; increases in wage and benefit costs; the effects of
changes in interest rates on the cost of borrowing; unexpected
increases in operating costs, such as insurance, workers’
compensation and health care; changes in the frequency or severity
of insurance incidents relative to historical experience; the
effects of changes in foreign exchange rates in relation to the US
dollar on the Company’s Canadian dollar, Euro, Australian dollar
and UK pound sterling denominated revenues and expenses; the impact
of pandemics on client demand for the Company’s services, the
ability of the Company to deliver its services and the health and
productivity of its employees; the impact of global climate change;
the impact of political events including elections, referenda,
trade policy changes, immigration policy changes, hostilities and
terrorism on the Company’s operations; the ability to identify and
make acquisitions at reasonable prices and successfully integrate
acquired operations; the ability to execute on, and adapt to,
information technology strategies and trends; the ability to comply
with laws and regulations related to our global operations,
including real estate and mortgage banking licensure, labour and
employment laws and regulations, as well as the anti-corruption
laws and trade sanctions; and changes in government laws and
policies at the federal, state/provincial or local level that may
adversely impact the business.
Additional information and risk factors are
identified in the Company’s other periodic filings with Canadian
and US securities regulators (which factors are adopted herein and
a copy of which can be obtained at www.sedar.com). Forward
looking statements contained in this press release are made as of
the date hereof and are subject to change. All forward-looking
statements in this press release are qualified by these cautionary
statements. Except as required by applicable law, Colliers
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Company Contact:Christian Mayer, CFOColliers
International Group Inc.(416) 960-9500
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