BXP extended the employment agreement of its Chief Executive Officer and Chairman, Owen D. Thomas, through December 31, 2029, aligning his tenure with the company’s multi‑year strategic plan announced at Investor Day in September 2025.
The extension keeps Thomas’s base salary, target cash bonus, and total compensation unchanged, but introduces a new 2025 Outperformance Plan (OPP). The OPP ties equity awards to a dividend‑adjusted stock price threshold of $90.00 per share for 20 consecutive trading days and is expected to generate roughly $32.1 million in compensation expense over the four‑year period, with $11.6 million recognized in 2026.
The move underscores BXP’s confidence in Thomas’s leadership as the firm pursues a portfolio of development projects and asset‑sale initiatives. Management said the extension will provide continuity as the company executes its premier workplace strategy and leverages capital to fund new developments and deleverage its balance sheet.
The announcement follows BXP’s Q3 2025 earnings miss, with EPS of –$0.77 versus a consensus of $0.41. The miss was driven by weaker leasing demand in core markets and higher operating costs, but revenue beat expectations, reflecting strong performance in life‑science and life‑style segments. The OPP is designed to align senior‑management incentives with shareholder value creation, potentially offsetting the impact of the earnings miss.
Board comments: Joel Klein praised Thomas’s vision and execution, while Compensation Committee chair Timothy Naughton highlighted the OPP’s focus on shareholder value. The extension and incentive plan signal BXP’s commitment to long‑term value creation amid a challenging office‑market environment.
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