Posted: January 4th, 2019
On 6 December 2018, Douglas Emmett Inc. announced that its Board of Directors had declared a quarterly cash dividend on each share of its common stock of $0.26, or $1.04 on an annualized basis. The dividend will be paid on January 15, 2019, to shareholders of record as of December 31, 2018. This represents a 4% increase over the company’s prior 2018 quarterly dividend of $0.25.
Douglas Emmett had 169,939,296 outstanding shares at October 30, 2018. The $0.26 dividend payout to investors would therefore total to $44,184,217. None of that money will go the company’s maintenance engineers who maintain the company’s core assets, namely the buildings that Douglas Emmett leases. The engineers, many of whom make minimum wage and are forced to rely on publically subsidized health insurance, are currently in labor contract negations seeking to improve their working conditions and their lives.
Much of the investor payout will go to management because Douglas Emmett’s stock ownership is very concentrated. The data are represented in the table below. The number of management’s shares were obtained from the most recent proxy filing with the SEC.
The fourth column shows how much Douglas Emmett will pay leading management and board members on January 15. The fifth column shows the value of the 4% increase alone.
Unlike investors, the affected workers are not getting a 4% raise. And the quarterly payout alone stands to account for all disputed contract elements.
|Executive||Position||No. of Shares||Quarterly Payout (Jan 2019)||Increase Over Prev. Dividend|
|Jordan L. Kaplan||CEO||10,741,671||$2,792,834||$107,417|
|Kenneth M. Panzer||COO||8,304,489||$2,159,167||$83,045|
|Christopher H. Anderson||Director||5,702,982||$1,482,775||$57,030|
|Dan A. Emmett||Chairman||5,611,861||$1,459,084||$56,119|
|Total: $7,893,860||Total: $303,611|