Office Landlord BXP Extends CEO With Performance Bonuses

Leadership Stability For Office Landlord

BXP, the largest publicly traded US office landlord, has renewed CEO Owen Thomas’ contract through at least 2029, per Bisnow. The extension aims to provide stable leadership as the office sector continues to recover from the effects of the pandemic. The employment agreement, which closely mirrors his prior contract, replaces a term set to expire at the end of 2026.

Performance Bonus Program

As part of the new package, Thomas can earn up to $2.35M annually for meeting performance targets and will also be eligible for equity compensation. A company car is also included. The standout item is a special performance bonus: Thomas and other executives will unlock significant compensation if BXP’s stock hits $90 per share for at least 20 consecutive days. Payouts increase with every $4 per share above the $90 threshold, up to a cap at $118 per share. The bonus program could total $32M in payments through December 2029, with $11.6M in related expenses expected next year alone.

Office Sector Challenges And Progress

BXP owns 55M SF of office space in 187 properties and remains a bellwether for the office landlord sector, which has faced steep challenges since the pandemic. The REIT’s shares have declined by 6% this year, and the company reported an 86.6% occupancy rate at the end of the third quarter, excluding recent deliveries. BXP saw a net loss of $122M last quarter, largely due to San Francisco writedowns, and cut its dividend by nearly 30%. However, recent leasing volumes offer signs of momentum, with 1.5M SF signed in Q3—the strongest pace since 2019. Executives expect to surpass 4M SF of leasing activity by year end. The company has also remained active on the development front, recently securing a major office deal in Washington, D.C., signaling its continued long-term confidence in the sector.