Executive Compensation and Management Development Committee Charter
(As adopted by the Board of Directors on February 25, 2010)
The Board of Directors (the "Board") of Post Properties, Inc., a Georgia corporation
(the "Corporation"), has previously constituted and established an Executive Compensation
and Management Development Committee (the "Committee") with the authority, responsibility
and specific duties as described herein. This Charter and the composition of the
Committee are intended to comply with applicable law and the rules of The New York
Stock Exchange, Inc. ("NYSE").
I. Purpose
The primary purpose of the Committee is to assist the Board in fulfilling its responsibilities
relating to compensation of the Corporation’s directors and executives.
II. Membership
A. The Committee shall be comprised of three (3) or more directors appointed by
the Board. Each member of the Committee shall: (1) qualify as an independent director
under the listing standards of NYSE (the "Listing Standards"), (2) be a "non-employee
director" within the meaning of Rule 16b-3 under the Securities Exchange Act of
1934, as amended (the "Exchange Act"), and (3) be otherwise free from any relationship
that, in the opinion of the Board, would interfere with the exercise of his or her
independent judgment as a member of the Committee. The Board shall affirmatively
conclude that the members of the Committee are independent, as required.
B. Each member of the Committee shall be elected by the Board at the annual organizational
meeting of the Board and shall serve until his or her successor shall be duly elected
and qualified, unless otherwise removed by the Board of Directors. Any vacancies
on the Committee occurring prior to the annual organizational meeting shall be filled
by the Board. Unless a Chairperson is elected by the full Board, the members of
the Committee may designate a Chairperson by majority vote of the full Committee
membership.
C. A majority of the Committee shall constitute a quorum for the taking of any action
by the Committee.
III. Meetings
A. The Committee shall hold such meetings as may be called by the Chairperson of
the Committee or at the request of the Board of Directors. The Committee shall maintain
minutes or other records of meetings and activities of the Committee.
IV. Responsibilities and Duties
The Board of Directors has authorized and directed the Committee to assume each
of the following responsibilities, and any other responsibilities the Board of Directors
specifically delegates to the Committee, in each case subject to the limitations
on the Board of Directors or any committee thereof contained in the Corporation’s
Articles of Incorporation or Bylaws or the Georgia Business Corporation Code, as
each is in effect from time to time:
A. Compensation
- Annually review and approve the Corporation’s goals and objectives relevant
to CEO and senior executive compensation, including as the Committee deems appropriate,
consideration of the Corporation’s performance and relative stockholder return,
the value of similar incentive awards to officers at comparable companies, the awards
given to the officers in past years and such other factors as the Committee deems
relevant, and evaluate the CEO’s and the other senior executive’s performance in
light of those goals and objectives.
- Annually review and approve, for the CEO and the other senior executives
of the Corporation, (1) the annual base salary level, (2) the annual incentive opportunity
level, (3) the long-term incentive opportunity level, and (4) any special or supplemental
benefits or perquisites.
- Review and approve, for the CEO and other senior executives, employment
agreements, severance arrangements, and change in control agreements/provisions,
in each case as, when and if appropriate.
- Annually review and make recommendations to the Board concerning the adoption,
terms and operation of the Corporation’s compensation plans for all directors, officers
and other senior executives, including incentive-compensation plans and equity based
plans.
- Grant stock options, restricted stock and other discretionary awards under
the Corporation’s incentive-compensation and equity based plans.
- Perform the administrative functions assigned to the Committee by the Board
or the provisions of any incentive-compensation plan, equity based plan, employee
stock purchase plan or other employee benefit plan.
- Retain, as deemed necessary, and terminate any compensation consultant
to be used to assist in the evaluation of director, CEO or executive compensation.
The Committee shall have sole authority to select such consultant and approve the
consultant’s fees and other retention terms.
- Review the Company’s incentive compensation arrangements to confirm that
incentive pay does not encourage unnecessary risk taking and periodically consider
the relationship between risk management and incentive compensation.
B. General
- Report periodically to the Board.
- Annually review the adequacy of this Charter and recommend any proposed
changes to the Board for approval.
- Assist the Board in developing and evaluating candidates for executive
positions, including the CEO, and oversee the development of executive succession
plans.
- Annually prepare a report on executive compensation for inclusion in the
Corporation’s proxy statement in accordance with the Securities and Exchange Commission
and other applicable rules and regulations.
- Annually review the performance of the Committee.
V. Certification
This Charter of the Committee was duly approved and adopted by the Board of the
Corporation on the 25th day of February, 2010.
Name: Sherry W. Cohen
Title: Executive Vice President and
Corporate Secretary