UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
(Amendment No. )
| Filed by the Registrant | ☒ | Filed by a Party other than the Registrant | ☐ |
Check the appropriate box:
| ☐ | Preliminary Proxy Statement |
| ☐ | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
| ☒ | Definitive Proxy Statement |
| ☐ | Definitive Additional Materials |
| ☐ | Soliciting Material Pursuant to §240.14a-12 |
GETTY REALTY CORP.
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box)all boxes that apply):
| ☒ | No fee required. | |||||
| ☐ | Fee paid previously with preliminary materials. |
| ☐ | ||||||
| Fee computed on table | ||||||
GETTY REALTY CORP.
292 MADISON AVENUE, 9TH FLOOR
NEW YORK, NEW YORK 10017-6376
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD APRIL 26, 202225, 2023
To our Stockholders:
NOTICE IS HEREBY GIVEN that the 20222023 Annual Meeting of Stockholders (the “Annual Meeting”) of Getty Realty Corp., a Maryland corporation (the “Company”), will be held on April 26, 202225, 2023 at 2:30 p.m. Eastern Time in a virtual format only. You will not be able to attend the Annual Meeting in person.To be admitted to the virtual Annual Meeting, you should go to www.virtualshareholdermeeting.com/GTY2022GTY2023 and enter the control number found on your proxy card (“Proxy Card”), voting instruction form or Notice of Internet Availability of Proxy Materials. You will be deemed present and may vote at the virtual Annual Meeting by following the instructions available on the meeting website during the meeting.
As set forth in the attached proxy statement, the Annual Meeting will be held for the following purposes:
| (1) | to elect a Board of Directors of |
| (2) | to hold an advisory vote to approve named executive officer compensation; |
| (3) | to hold an advisory vote on the frequency of the advisory vote on executive compensation; and |
| (4) | to ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the year ending December 31, |
We will also transact such other business as may properly come before the Annual Meeting or any adjournments or postponements thereof.
The Proxy Statement accompanying this Notice more fully describes the proposals to be voted on at the Annual Meeting.
Only stockholders of record at the close of business on March 3, 20226, 2023 are entitled to notice of and to vote at the Annual Meeting or any adjournments or postponements thereof.
On or about March 17, 2022,16, 2023, we are furnishing proxy materials to our stockholders through the internet as permitted under the rules of the Securities and Exchange Commission. Under these rules, many stockholders will receive a Notice of Internet Availability of Proxy Materials (the “Notice of Internet Availability of Proxy Materials”) instead of a paper copy of the Notice of Annual Meeting of Stockholders and Proxy Statement, our Proxy Card, and our Annual Report to Stockholders. We believe that this process gives us the opportunity to serve our stockholders more efficiently by making the proxy materials available quickly online and reducing costs associated with printing and postage. Stockholders who do not receive a Notice of Internet
Availability of Proxy Materials will receive a paper copy of the proxy materials by mail. The Notice of Internet Availability of Proxy Materials instructs you how to access and review the proxy materials and our Annual Report beginning on March 17, 2022.16, 2023. The Notice of Internet Availability of Proxy Materials also instructs you how you may submit your proxy over the internet.
| New York, New York | By Order of the Board of Directors, |
| March | |
| /s/ Joshua Dicker | |
| Joshua Dicker | |
Executive Vice President, General Counsel and Secretary |
WHETHER OR NOT YOU PLAN TO ATTEND THE VIRTUAL ANNUAL MEETING, PLEASE READ THE PROXY STATEMENT AND COMPLETE A PROXY CARD FOR YOUR SHARES AS SOON AS POSSIBLE. YOU MAY VIA THE INTERNET AUTHORIZE A PROXY HOLDER TO VOTE YOUR SHARES BY FOLLOWING THE INSTRUCTIONS ON THE WEBSITE INDICATED IN THE NOTICE MAILED TO YOU REGARDING THE AVAILABILITY OF PROXY MATERIALS. IF YOUR SHARES ARE HELD IN THE NAME OF A BROKERAGE FIRM, BANK, NOMINEE OR OTHER INSTITUTION, YOU SHOULD PROVIDE INSTRUCTIONS TO YOUR BROKER, BANK, NOMINEE OR OTHER INSTITUTION ON HOW TO VOTE YOUR SHARES. YOU MAY ALSO REQUEST A PAPER PROXY CARD TO SUBMIT YOUR VOTE BY MAIL. IF YOU VIRTUALLY ATTEND THE ANNUAL MEETING AND VOTE VIA THE MEETING WEBSITE, THAT VOTE WILL REVOKE ANY PROXY YOU MAY HAVE PREVIOUSLY SUBMITTED. IF YOU HOLD SHARES IN THE NAME OF A BROKERAGE FIRM, BANK, NOMINEE OR OTHER INSTITUTION, THEN, IN ORDER TO VOTE YOUR SHARES VIA THE MEETING WEBSITE DURING THE MEETING, YOU MUST ENTER THE CONTROL NUMBER FOUND ON YOUR PROXY CARD, VOTING INSTRUCTION FORM OR NOTICE OF INTERNET AVAILABILITY OF PROXY MATERIALS.
YOUR VOTE IS IMPORTANT, NO MATTER HOW MANY SHARES YOU OWN.
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| GETTY REALTY 2023 Proxy Statement | 5 |
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Proxy Summary
20222023 Annual Meeting ofOf Stockholders
  |   |   | ||
Date and Time: | ||||
April | ||||
| 25, 2023 at 2:30 p.m. Eastern Time | Place: Virtually at | Record Date: March 6, 2023 | ||
This Proxy Summary highlights information contained elsewhere in this Proxy Statement. This summary does not contain all the information that you should consider before voting. Please carefully read the complete Proxy Statement and Getty’s Annual Report on Form 10-K before voting.
Annual Meeting Information
This Proxy Statement is furnished in connection with the solicitation of proxies by and on behalf of the Board of Directors of Getty Realty Corp. (hereinafter called the “Company” or “Getty”), to be voted at the Company’s Annual Meeting to be held in a virtual format only at www.virtualshareholdermeeting.com/GTY2022GTY2023 on April 26, 202225, 2023 at 2:30 p.m. Eastern Time, and at any adjournments or postponements thereof (the “Annual Meeting”), for the purposes of (1) electing sevensix directors to Getty’s Board of Directors; (2) holding an advisory vote to approve named executive officer compensation; (3) holding an advisory vote on the frequency of the advisory vote on executive compensation; and (4) ratifying the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm; and (4) approving an amendment to the charter of the Company to provide both the Board of Directors and the stockholders the power to alter, repeal, amend or rescind any provision of the Bylaws and to make new Bylaws on the terms set forth in the Articles of Amendment attached as Appendix A to this Proxy Statement.firm. We will also transact such other business as may properly come before the Annual Meeting or any adjournments or postponements thereof.
Record Date, Voting Rights, Outstanding Shares and Quorum
At the close of business on March 3, 2022,6, 2023, the record date for stockholders entitled to notice of and to vote at the Annual Meeting, there were 46,720,26846,775,037 shares of Getty common stock outstanding.Only the holders of record of our common stock as of the close of business on the record date are entitled to notice of, and to vote at, the Annual Meeting and any adjournments or postponements thereof. Each outstanding share of common stock is entitled to one vote. The shares of common stock vote as a single class. In order to constitute a quorum at the Annual Meeting, there must be present virtually or represented by proxy stockholders entitled to cast a majority of all the votes entitled to be cast at the Annual Meeting as of the record date.
Under Maryland law, shares represented by proxies that reflect abstentions or “broker non-votes” (i.e., shares held by a broker, bank, nominee or other record holder which are present virtually or by proxy at the Annual Meeting, but with respect to which such broker, bank, nominee or other record holder lacks discretionary authority to vote the shares and has not received voting instructions from the beneficial owner of the shares to vote on a particular proposal and is thus not empowered by the beneficial owner to vote the shares on such proposal) will be counted as shares that are present and entitled to vote for purposes of determining the presence of a quorum.
Voting Requirements
If your shares are held in the name of a broker, bank, nominee or other record holder, you will receive instructions from the holder of record on how to vote your shares. You must follow the instructions of the holder of record in order for your shares to be voted. If your shares are not registered in your own name and you plan to vote your shares during the Annual Meeting, you should go to the meeting website and enter the control number found on your proxy card, voting instruction form or Notice of Internet Availability of Proxy Materials (the “Notice of Internet Availability”).
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If your shares are registered directly in your name with our transfer agent, you are a “stockholder of record,” and you may vote your shares:
| ■ | Online: Go to http://www.proxyvote.comand follow the instructions |
| ■ | By Telephone: Call toll-free 1-800-690-6903 and follow the instructions |
| ■ | By Mail: Complete, sign, date and return your proxy card in the enclosed envelope |
| ■ | Virtually In-Person: Virtually attend the Annual Meeting and vote your shares |
All valid proxies received, and not revoked, before the Annual Meeting will be exercised. All shares represented by a valid proxy will be voted, and where a proxy specifies a stockholder’s choice with respect to any matter to be acted upon, the shares will be voted in accordance with that specification. If no choice is indicated on the proxy with respect to any one or more of the proposals, the shares will be voted in favor of such proposal(s). At the discretion of the persons named on the enclosed proxy card or vote instruction form, such proxy holder may also vote on any other matter that may properly come before the Annual Meeting or any adjournments or postponements thereof.
Vote Required
If a quorum is achieved at the Annual Meeting, the following voting requirements will apply:
| 1. | Election of Directors.The affirmative vote of a plurality of all votes cast at the Annual Meeting at which a quorum is present is required for the election of each nominee to our Board of Directors. With respect to each director nominee, you may vote “for” such nominee or “withhold” your vote as to such nominee. If you “withhold” authority to vote with respect to one or more director nominees, your vote will have no effect on the election of such nominees. Director nominees with the most votes cast “for” such nominee’s election will be elected to our Board of Directors. |
| ■ | For purposes of the election of directors, abstentions and broker non-votes, if any, will not be counted as votes cast and will have no effect on the result of the vote. |
| 2. | Advisory vote to approve named executive officer compensation.The affirmative vote of a majority of the votes cast at the Annual Meeting at which a quorum is present is necessary to approve the advisory vote on named executive compensation. |
| ■ | For purposes of the advisory vote to approve the named executive officer compensation, abstentions and broker non-votes are not considered votes cast and will have no effect on the outcome of this proposal. |
This vote on named executive officer compensation is not binding on the Board of Directors or Getty. The Board of Directors, however, will consider the results of the vote when considering future named executive compensation arrangements.
| 3. | Advisory vote on the frequency of the advisory vote on executive compensation. The affirmative vote of a majority of the votes cast at the Annual Meeting at which a quorum is present is necessary to approve the advisory vote on the frequency of the advisory vote on executive compensation. If no option receives a majority of the votes cast, the option that receives the most votes will be considered the option selected by stockholders. |
| ■ | For purposes of the advisory vote on the frequency of the advisory vote on executive compensation, abstentions and broker non-votes are not considered votes cast and will have no effect on the outcome of this proposal. |
This vote on the frequency of the advisory vote on executive compensation is not binding on the Board of Directors or Getty. The Board of Directors, however, will consider the results of the vote when considering the frequency of the advisory vote on executive compensation in the future.
| 4. | Ratify the appointment of PricewaterhouseCoopers LLP.The affirmative vote of a majority of the votes cast at the Annual Meeting at which a quorum is present is required to ratify the appointment of PricewaterhouseCoopers LLP, as the independent registered public accounting firm. |
| ■ | For purposes of the appointment of PricewaterhouseCoopers LLP, abstentions are not considered votes cast and will have no effect on the outcome of this proposal. (The ratification of the appointment of auditors is considered a “routine” matter under The New York Stock Exchange (“NYSE”) rules for which brokers, banks, nominees or other record holders have discretionary authority to vote without receiving instructions from the beneficial owner of the shares. See “Broker Non-Votes” below for further information.) |
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Broker Non-Votes
Broker non-votes occur when a beneficial owner of shares held in “street name” does not give instructions to the broker, bank, nominee or other record holder holding the shares as to how to vote on matters deemed “non-routine” under NYSE rules and, therefore, lacks discretionary authority to vote the shares without voting instructions from the beneficial owner. Generally, if shares are held in street name, the beneficial owner of the shares is entitled to give voting instructions to the broker, bank, nominee or other record holder holding the shares. If the beneficial owner does not provide voting instructions, the broker, bank, nominee or other record holder can still vote the shares with respect to matters that are considered to be “routine” under NYSE rules but cannot vote the shares with respect to “non-routine” matters. With respect to the four proposals set forth in this Proxy Statement, only Proposal 34 – Ratification of the Appointment of Independent Registered Public Accounting Firm – is considered to be “routine” and brokers, banks, nominees or other record holders will have discretionary voting power with respect to such proposal. We encourage you to provide instructions to your broker, bank, nominee or other record holder regarding the voting of your shares in order to ensure that your shares are represented at the Annual Meeting. See “Vote Required” section above for the treatment of broker non-votes with respect to each of the four proposals.
If you vote by proxy, the individuals named on the proxy card (your “proxies” or “proxy holders”) will vote your shares in the manner you indicate.
Revocation of Proxies
You may revoke your proxy at any time prior to it being exercised. Record holders may revoke their proxy by voting via the website during the meeting or by submitting a new proxy, dated after the date of the proxy to be revoked, to the Secretary of the Company at the Company’s address shown on the cover page of this Proxy Statement, prior to the Annual Meeting. If your shares are held in “street name,” you must contact your broker, bank, nominee or other record holder for instructions on revoking your proxy.
Solicitation of Proxies
We will bear the cost of soliciting proxies. In addition to soliciting stockholders by mail through our employees, we will request brokers, banks, nominees or other record holders, custodians and fiduciaries to solicit customers for whom they hold our stock, and we will reimburse them for their reasonable, out-of-pocket costs in connection with the solicitation of proxies. We may also use the services of our officers, directors and others to solicit proxies personally or by telephone, without additional compensation.
Notice Regarding the Internet Availability of Proxy Materials
From the date of mailing of the Notice of Internet Availability through the conclusion of the Annual Meeting, stockholders will be able to access all of the proxy materials on the internet at www.proxyvote.com. The proxy materials will be available free of charge. The Notice of Internet Availability will instruct you as to how you may access and review all of the important information contained in the proxy materials (including our Annual Report to Stockholders) over the internet or through other methods specified at the website designated in the Notice of Internet Availability. The designated website contains instructions as to how to vote your shares over the internet or by telephone. The Notice of Internet Availability also instructs you as to how you may request a paper or email copy of the proxy card. If you received a Notice of Internet Availability and would like to receive a printed copy of the proxy materials, you should follow the instructions for requesting such materials included in the Notice of Internet Availability.
The rules and regulations adopted by the Securities and Exchange Commission (the “SEC”) permit us to deliver a single Notice of Internet Availability or set of Annual Meeting materials to one address shared by two or more of our stockholders. We have delivered only one copy of the Notice of Internet Availability or set of Annual Meeting materials to multiple stockholders who share the same address, unless we received contrary instructions from the affected stockholders prior to the mailing date. We will promptly deliver, upon written or oral request, a separate copy of the Notice of Internet Availability or set of proxy materials to any stockholder at the shared address to which a single copy of those documents was delivered. If you prefer to receive separate copies of the Notice of Internet Availability or sets of proxy materials, contact Broadridge Financial Solutions, Inc. (“Broadridge”) at 1-800-542-1061, or in writing at Broadridge, Householding Department, 51 Mercedes Way, Edgewood, NY 11717. If you are currently a stockholder sharing an address with another stockholder and wish to receive only one copy of future Notices of Internet Availability of Proxy Materials or set of proxy materials for your household, please contact Broadridge at the above phone number or address.
The Notice of Internet Availability or set of proxy materials will be sent to stockholders, and will be available on the internet, on or about March 17, 2022.16, 2023.
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Voting Items and Board of Directors Recommendations
| Proposal Description | Board Vote Recommendation | Page Number with More Information | ||||
| Proposal 1 | Election of | “FOR” all nominees | ||||
| Proposal 2 | Advisory vote to approve named executive officer compensation | “FOR” | ||||
| Proposal 3 | Advisory vote on the frequency of the advisory vote on executive compensation | “FOR” | 52 | |||
| Proposal | Ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the year ending December 31, | “FOR” | ||||
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Performance Highlights
We achieved another year of increased profitabilitymaintained our positive earnings trajectory in 2021,2022, as measured by Adjusted Funds From Operations (“AFFO”) per share, which supported another material increase in cash dividends to common stockholders.
| AFFO Per Share | Dividends Paid Per Share |
 |  |
Our emphasis on expanding our platform and growing our portfolio drove the mostanother diverse set of annual acquisitions in 2022. We allocated approximately 30% of our history in 2021.investment spending to convenience stores, and more than 70% to other convenience and automotive retail real estate (express car washes, auto service centers, and drive-thru quick serve restaurants). We acquired a variety of high-quality convenience, automotivealso added four new tenants to the portfolio and other freestanding retail properties, while addingmeaningfully expanded our relationships with eight new tenantsseveral existing tenants. Finally, we grew our presence in a number of attractive metropolitan areas including Austin, Charleston (South Carolina), Charlotte, Las Vegas, and geographic exposureSan Antonio.
2022 INVESTMENT VOLUME BY PROPERTY TYPE
We demonstrated our strong access to four new states across the country.
Wecapital and our continued our commitment to an investment grade credit profile in 2021,2022, raising a record amountmore than $340 million of permanent debt and equity under our at-the-market (“ATM”) equity program, accretively refinancing our unsecured revolving credit facility,capital and maintaining strong credit metrics.
| Equity | Debt | Credit Metrics | |||
■ | ■ |
| ■ BBB-Fitch rating affirmed ■ ■ |
Executive Compensation Highlights
Our executive compensation program currently involves a combination of annual cash compensation, discretionary incentive compensation, including both cash and equity incentive awards, retirement and other plans, and perquisites and other benefits.
We aim to develop and implement compensation programs that are designed to encourage high performance, promote accountability, and assure that executives’ interests arecontinue to be aligned with the interests of our stockholders.
The majority of the compensation awarded to executives is variable in nature and dependent on Company and individual performance. Additionally, approximatelymore than half of 20212022 executive compensation was in the form of equity incentive awards, further aligning executives’ interests with stockholders.
| CEO PAY MIX* | OTHER NEO PAY MIX* |
 |  |
* Equity incentive award data is based on the value of restricted stock units granted in February 2022 based on 2021 performance
In making executive compensation determinations, we also consider the results of the non-binding, advisory stockholder votes on our executive compensation program. Our stockholders have approved our executive compensation program each year since the advisory vote was first sought, including by at least 95%93% of votes cast in each of the last three years.
| Say On Pay Vote |
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Please see the section of this Proxy Statement below titled “Executive Compensation” for a detailed discussion of our executive compensation program and compensation philosophy, including detailed information regarding 20212022 compensation of our NEOs.Named Executive Officers.
Business Philosophy
Our objective is to generate sustained earnings growth, which in turnsturn drives sustained growth inof cash dividends to common stockholders, and to do so over the long term without negatively altering our risk profile. To this end, our investment strategy combines comprehensive transaction underwriting and lease structuring with certain macro perspectives that guide capital allocation decisions across property types, tenants and transactions. We focus our efforts on freestanding retail properties that are tied to convenience and automobility, exhibit strong underlying real estate characteristics – including access, visibility and synergies with nearby retailers – are located in high-density metropolitan areas, and are leased to national and regional operators.
| Getty Realty Investment Perspectives | ||
| ■ | Automobility is power agnostic and remains the dominant form of consumer transportation | |
| ■ | ||
| Mobile consumers increasingly prioritize convenience, service, and speed | ||
| ■ | ||
| Convenience & automotive retailers are essential businesses, and e-commerce & recession resistant | ||
| ■ | ||
| Markets experiencing population and traffic growth realize increased consumer demand | ||
| ■ | ||
| Institutional consolidation of fragmented sectors creates transaction opportunities | ||
| ■ | ||
| Versatile real estate retains land value and provides alternate use potential | ||
We seek to grow and enhance our portfolio through accretive investments and active asset management. We acquire new properties through sale leaseback transactions, development funding for new-to-industry construction, and the acquisition of properties with in-place leases, and also selectively redevelop assets within our existing portfolio.
We place a premium on establishing long-term relationships with tenants and regularly lookseek to form new relationships. We believe that a relationship-driven approach mitigates risk and drives efficiencies for originating and underwriting new investment opportunities given our familiarity with the underlying tenant credit and business operations.
Lastly, we are committed to maintaining an investment grade credit profile, including low-to-moderate leverage, ample liquidity and access to capital, and a flexible, unencumbered balance sheet. We believe that this capital structure philosophy helps to facilitate growth and mitigate risk across fluctuating market cycles.
Corporate Responsibility
We are committed to good corporate citizenship and business practices that serve all of our stakeholders. We recognize the importance of environmental, social and governance (“ESG”) issues and incorporate ESG considerations into our business practices and decision-making processes. We believe the growth and sustainability of our business depends on a broad array of factors, including a continuing focus on investments in our people, ethics and integrity, and support of our environmental programs.
Our ESG efforts continuedWe reached an important milestone in 2022 with the release of our inaugural Corporate Responsibility Report, which gave us an opportunity to evolve in 2021 withmore fully discuss our initial disclosures regarding our programsapproach to corporate responsibility and the emphasis we place on our websitepeople, our planet, and in certain of our corporate marketing materials. We anticipate publishing our first standalone corporate responsibility reportbusiness practices. Notable ESG initiatives conducted in 2022 and into 2023 included:
| ■ | Launching our Getty Green Loans program which offers low-cost loans to our tenants for qualified environmental and sustainability projects; |
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| ■ | Engaging with an outside consultant to conduct a Materiality Assessment to identify ESG topics most relevant to our internal and external stakeholders, in order to evaluate alignment with our ESG strategies and identify potential ESG opportunities; |
| ■ | Engaging with an outside consultant to conduct a formal Tenant Survey seeking our tenants’ feedback regarding sustainability measures and initiatives implemented or that may be implemented at our properties, in order to identify potential ESG opportunities; and |
| ■ | Successfully completing the inaugural year of our Getty Gives campaign and pro bono legal program, which were both launched in 2022 to provide our team with Company sponsorship to support causes dear to us and the communities in which we live and work, including corporate donations to charitable organizations selected by our employees, company matching for employee charitable donations, legal services to advance the public interest, and additional paid time off for employee volunteer opportunities. |
We look forward to pursuing initiatives that furthersharing additional details on these efforts and our corporate citizenship and serviceongoing commitment to all ofeffective ESG practices in our stakeholders.2023 Corporate Responsibility Report, scheduled to be published in June 2023.
Our People: Social Responsibility and Human Capital Development
We believe that our people are the foundation of our success, and we are committed to ensuring that they are provided a safe and healthy workplace and are engaged both professionally and socially. Our Business Conduct Guidelines and Employee Handbook govern our professional conduct and ethics with respect to our people, our partners, our health and safety, and our information technology security.
Employee Health and Wellness
We took swift and decisive action at the onset of the COVID-19 pandemic to provide our employees with a safe workplace by investing in and instituting Company-wide work-from-home policies. We subsequently adopted health screening and hygiene protocols, implemented office de-densification and distancing strategies, and supplied sanitization and protective equipment to ensure a safe return to the office.
While ourDuring 2022, Getty’s business operations were not significantly disrupted by the COVID-19 pandemic, during 2021,as patterns of work and social conduct continued to adjust toward normalization. However, the Company maintained its COVID-19 protocols to help protect our team, continuedincluding policies relating to demonstrate resiliencyself-monitoring of symptoms, testing, and agility in respondingwork from home when appropriate. In addition, the Company’s headquarters adheres to health and safety best practices, and we also have adopted a frequently changingpermanent hybrid work environment and related challenges that arose as a resultpolicy allowing all employees the flexibility to work from home up to two days per week. The Company remains committed to the prioritization of the pandemic. We prioritized empathy and flexibility to support the safety, health, and security of each member of our team and has worked to ensure that they wereall Getty employees are able to meet their personal and family needs, as well as their professional goals.
| Health and Wellness Highlights | ||
| ■ | Expansive paid time-off benefits and flexible work schedules | |
| ■ | ||
| Programs for paid parental leave and adoption assistance reimbursement | ||
| ■ | ||
| Comprehensive medical and dental insurance with substantially all premiums paid by the | ||
| ■ | ||
| Company-funded healthcare reimbursement accounts and pre-tax employee-funded flexible spending accounts | ||
Employee Benefits and Compensation
In addition to programs to support their health and wellness, our team members are provided a comprehensive compensation and benefits package, including competitive base salaries, cash and equity incentive awards, multiple retirement savings programs and commuter benefits programs. Further, we encourage the professional development of our employees through in-person trainings and online learning resources and regularly support and pay for external education classes and seminarsprograms requested by our employees, as well as higher-education tuition reimbursement, if doing so will advance their work-related skills or professional development.
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| Benefits and Compensation Highlights | ||
| ■ | Cash and equity incentive awards for all team members | |
| ■ | ||
| Profit sharing program and 401(k) plan with partial Company match | ||
| ■ | ||
| Company-funded commuter reimbursement accounts and a pre-tax employee-funded commuter benefits program | ||
| ■ | Company-funding for professional development and qualified tuition reimbursement | |
| ■ | Comprehensive health and wellness benefits as highlighted above | |
Diversity and Inclusion
We aim to foster a diverse and inclusive work environment. Women currently comprise 48%47% of our full-time team at various levels throughout our organization. We expect our workplace to be free from discrimination and harassment on the basis of color, race, sex, national origin, ethnicity, religion, disability, sexual orientation, gender identification or expression, and any other legally-protected status. Our Business Conduct Guidelines and Employee Handbook govern our professional conduct and ethics and we conduct annual training to prevent harassment and discrimination and monitor employee conduct year-round.
Corporate Citizenship and Philanthropy
We appreciate the important role that our team and the Company can play in the communities in which we live and operate.
We support individual volunteerism and provide team members with work schedule flexibility to support causes and organizations that are meaningful to them. In 2022, we expectlaunched our Getty Gives campaign to provide our team with a formal program to support causes dear to them and the communities in which we live and work. Getty Gives includes corporate donations to charitable organizations selected by our employees, company matching for employee charitable donations, and additional paid time off for employee volunteer opportunities. In 2022, our Getty Gives program led to corporate charitable donations to two charitable organizations selected by our employees, and matching employee charitable donations to many other worthy causes.
In 2022, we also launched our inaugural pro bono legal services program to advance the public interest by serving organizations in need and at the same time provide opportunities for personal philanthropic fulfillment to in-house members of our legal team. Getty considers in-house pro bono activity to be an important part of its commitment to philanthropic initiatives and is committed to continuing efforts to help our communities through pro bono legal engagement.
We will continue to support individual volunteerism and provide Company employees with work schedule flexibility to support causes and organizations that are meaningful to them. In the years ahead we will maintain our Getty Gives campaign and seek to expand our corporate citizenship and philanthropyphilanthropic efforts by evaluating opportunities to support organizations selected by our team members through corporate volunteerism and Company giving, including a Company matching program for individual donations.volunteerism.
Our Planet: Environmental Stewardship
As an organization, we place a high priority on the protection of our assets, communities, and the environment. Our team includes full-time environmental experts who perform due diligence to support our investment activity and actively manage a program to oversee legacy environmental remediation for which we are responsible. In addition, our leases require tenants to comply with environmental laws and regulations, and, for operations with environmental susceptibility, to have insurance to protect against environmental impacts that arise during their tenancy. We also emphasize sustainability at our new corporate headquarters where we utilize energy efficient computer equipment, filtered water machines and timed or sensor-controlled HVAC and lighting systems, among other sustainability practices.
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Environmental Due Diligence
Our acquisition due diligence process includes thorough environmental review and analysis, including environmental site assessments to understand the environmental condition of the property, including whether there is indication of any release of hazardous substances, chemical or waste storage, or other environmental concerns or risks, and to determine whether the property and the operations thereon meet environmental standards.
Environmental Compliance
Our properties are leased to tenants under triple-net leases which make tenants contractually responsible for compliance with environmental laws and regulations and for remediation of all environmental contamination that arises from their occupancy, and, in most cases, that may be discovered during their occupancy even if it pre-dated their occupancy. We take appropriate measures, including enforcement when necessary, to assure that our tenants comply with these contractual provisions for the benefit of the environment. Our leases also require tenants who conduct environmentally susceptible operations to have comprehensive insurance, and we maintain additional pollution coverage throughout our portfolio offor properties with higher environmental risk exposure.
In addition, we maintain a robust, well-staffed and actively managed program to oversee environmental remediation for which the Company ismay be held responsible, develop strategies and enhance processes for compliance with environmental laws and regulations by the Company and our tenants, and conduct appropriate operational surveillance of environmental risk and exposure for our real estate holdings.
Sustainability at Our Properties
Under our triple-net leases, tenants are responsible for operating the businesses conducted at our sites, keeping the properties in good order and repair, and making capital investments as they deem appropriate to optimize their business operations. As such, it is our tenants who control the environmental impact of their operations, including energy efficiency, water usage, and waste and recycling practices, and decide when and how to adopt environmentally sustainable practices and make related investments.
Based on recent communicationsIn 2022, we partnered with an outside Environmental, Health, Safety and Sustainability (EHS&S) consulting firm to develop and conduct a formal Tenant Survey seeking our tenants, we are pleased to report that many havetenants’ input regarding sustainability measures and initiatives already completed environmental and sustainability projects, including upgrading to LED lighting, installing energy efficient coolers and HVAC units, and, in select cases, installing EV charging stationsimplemented at our properties. properties, or that may be implemented at our properties, as well as information regarding our tenants’ current ESG policies and practices. The Tenant Survey results will assist us in identifying additional potential ESG opportunities to support our business and our tenants’ businesses.
We appreciate that many of our tenants have completed these “green” projects at our properties with their own capital and/or have taken advantage of government and other subsidies for qualifying renewable energy technologies and projects.
While we have always supported and encouraged these tenant investments, as part of our commitment to ESG, we recently implemented our “Getty Green Loans” program to provide low-cost loans to our tenants for the express purpose of investing in environmental and sustainability projects. As a net lease landlord, we trust our tenants to identify the investments they deem appropriate to successfully operate their businessbusinesses at each sitesites we own. With Getty Green Loans, we hope to reinforce our position as a business partner, while providing additional incentive to our tenants to prioritize green projects as they continue to enhance their operations and our properties.
Sustainability at Our Corporate Headquarters
We recently leased newemphasize sustainability at our corporate office space in New York City and emphasized sustainability with respect to certain elements ofthrough our build out and subsequent office policies. Our new office space wasis outfitted with energy efficient computer equipment, filtered water machines, and timed or sensor-controlled HVAC and lighting systems. Our office policies include various recycling programs, no plastic cups, dishes, or utensils, and a commitment to reduce paper use. Our commuter benefits program encourages the use of public transportation or ride sharing.sharing, and our headquarters boasts a Redfin Walk Score® ranking of 99 and Transit Score® rating of 100, leading to reduced use of single occupancy vehicles in commuting by our employees.
Our Practices: Corporate Governance and Ethical Business Practices
We are dedicated to maintaining high standards for corporate governance predicated on integrity and transparency. Our Board of Directors is directly engaged with the critical initiatives that help us establish and maintain our policies related to sustainability, corporate citizenship, and effective governance. In that regard, our Board has delegated oversight of our ESG efforts to our Nominating/Corporate Governance Committee, and oversight of enterprise risk management and risk mitigation to our Audit Committee, including with respect to (i) information security and data protection, and (ii) climate related risks in the Company’s financial statements as and to our Audit Committee.the extent required by the applicable rules and regulations promulgated by the U.S. Securities and Exchange Commission (the “SEC”) or Financial Accounting Standards Board (“FASB”).
| GETTY REALTY |
| Corporate Governance Highlights | ||
| ■ | We have an independent Board of Directors, including our Chairman and all of our committees | |
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| We hold annual elections for all of our Directors | ||
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| We have restrictions on over-boarding | ||
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| We maintain anti-hedging and anti-pledging policies | ||
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| We have no poison pill provisions | ||
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| We have opted out of applicable provisions of the Maryland Unsolicited Takeover Act (MUTA) relating to our Board’s right to self-classify | ||
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| Our Board of Directors and executive management team maintain significant stock and/or stock-equivalent ownership in our Company | ||
Board Composition
We value independence and are committed to broadening diversity on our Board of Directors. SixExcluding our Chief Executive Officer who sits on our Board, all of our sevencurrent Directors, including our Chairman, are independent including our Chairman,(as defined in the listing standards of the NYSE) and all of our committees are independent. In 2021, we enhanced the diversitycomprised solely of our Board from both a gender and underrepresented communities perspective, and ourindependent Directors. Our Corporate Governance Guidelines affirm that diversity (based on factors commonly associated with diversity such as race, gender, national origin, religion, and sexual orientation or identity, as well as on broader principles such as diversity of perspective and experience) is one of the elements to be considered in evaluating a particular director candidate.
candidate, and our Board of Directors is committed to prioritizing diversity in connection with any future consideration of a candidate for the Board of Directors.
We seek to ensure our Board of Directors has diversity of background, expertise, perspective, age, gender |
33%
| 17% of our Board identifies |  |
83% Independent All of our directors other than our CEO are independent | ||
Proposal No. 1
Election of Directors(Item No. 1 on the Proxy Card)
Nominees for Election at the Annual Meeting
Getty’s directors are elected at each annual meeting of stockholders and hold office for a term of one year and until their respective successors are elected and qualified. The Board of Directors has nominated sevensix candidates for election as directors for a one-year term ending at the 20232024 annual meeting of the Company’s stockholders or when their successors are duly elected and qualified. As discussed below, effective February 21, 2023, Richard E. Montag retired from the Board of Directors, resulting in a vacancy on the Board of Directors.
The affirmative vote of a plurality of all votes cast at the Annual Meeting is required for the election of each nominee to our Board of Directors. With respect to each director, you may vote “for” such nominee or “withhold” your vote as to such nominee. Director nominees with the most votes cast “for” such nominee’s election will be elected to our Board of Directors. Accordingly, if you “withhold” authority to vote with respect to one or more nominees, your vote will have no effect on the election of such nominees. For purposes of the election of directors, abstentions and broker non-votes, if any, will not be counted as votes cast and will have no effect on the result of the vote.
You may use the proxy card furnished to you to cast your votes for the election of the Director nominees named in the table below. In the event thatIf any of the nominees should become unable or unwilling to serve as a director prior to the Annual Meeting, we intend to vote your proxy “for” the election of the substitute nominee, if any, who is designated by the Board of Directors (unless the proxy contains instructions to the contrary). For additional information about how we identify and evaluate nominees for director, see “Committees – Nominating/Corporate Governance Committee” at page 2325 of this Proxy Statement.
Set forth below is information regarding the directors nominated for election at the Annual Meeting, including background information and information regarding the specific experience, qualifications, attributes and skills that support the conclusion that these nominees should serve as directors of Getty. We believe that our Board of Directors is comprised of a makeup of individuals with a diversity of professional, personal, and experiential backgrounds, including with respect to skills, education, industry experience, and demographic characteristics such as age, gender, ethnicity and geographic location. For additional information regarding the particular skills represented on our Board of Directors, see the “Experience and Qualifications Represented on the Board”our Board of Directors” section below on page 1921 of this Proxy Statement.
| Christopher J. Constant – 44 | ||
 | Mr. Constant has served as a director of Getty since January 1, 2016, concurrent with his appointment as President and Chief Executive Officer of the Company at such time. Mr. Constant joined the Company in November 2010 as Director of Planning and Corporate Development and advanced within the Company to Treasurer in May 2012, Vice President in May 2013, Chief Financial Officer in December 2013, and President and Chief Executive Officer as of January 1, 2016. Prior to joining Getty, Mr. Constant was a Vice President in the corporate finance department of Morgan Joseph & Co. Inc. and began his career in the corporate finance department at ING Barings. Mr. Constant holds an A.B. from Princeton University. Mr. Constant’s qualifications to serve on our Board of Directors include his past experience in investment banking, totaling over ten years, including his past leadership role as Vice President in the investment banking firm Morgan Joseph & Co. Inc., and his diverse knowledge of financial and capital markets and corporate development strategies, specifically as they relate to the real estate industry and real estate investment trusts (“REITs”). In addition, Mr. Constant has extensive knowledge of the Company’s business strategies, finances and operations cultivated through his years of service as President and Chief Executive Officer since 2016 and in various other executive capacities with the Company since 2010. Mr. Constant has been a driving force behind the development and execution of numerous projects and strategic initiatives during his tenure at Getty. His knowledge of our business, finances, operations and compliance requirements, and his demonstrated effective leadership within the Company, qualify Mr. Constant as a valuable member of our Board of Directors. | |
| GETTY REALTY 2023 Proxy Statement | 17 |
| Milton Cooper – | ||
 | Mr. Cooper has served as a director of Getty since 1971 and as Chairman of the Compensation Committee since 2006. Mr. Cooper is the Executive Chairman of the Board of Directors for Kimco Realty Corporation (“Kimco”), a NYSE listed Mr. Cooper is a nationally recognized leader of the modern REIT industry. He has received the National Association of Real Estate Investment Trusts Industry Leadership Award for his significant and lasting contribution to the REIT industry. From 1983 through April 2012, he was also a director of Blue Ridge Real Estate/Big Boulder Corporation, a real estate management and land development firm. Mr. Cooper has also served as a member of the Executive Committee of the Board of Governors of the National Association of Real Estate Investment Trusts. Mr. Cooper | |
Philip E. Coviello – | ||
 | Mr. Coviello has served as a director of Getty since 1996 and as Chairman of the Audit Committee since 2000. Mr. Coviello has also served on the Compensation Committee since 2007 and on the Nominating/Corporate Governance Committee since 1999. Mr. Coviello has served as a director of Kimco since 2008, serves as Chairman of Kimco’s Audit Committee and also serves on Kimco’s Executive Compensation Committee and Nominating/Corporate Governance Committee. Mr. Coviello was a partner in Latham & Watkins LLP, an international law firm, until his retirement from the firm as of December 31, 2003. Mr. Coviello holds an A.B. from Princeton University, an L.L.B. from Columbia University School of Law, and an M.B.A. from Columbia University Business School. Mr. Coviello’s qualifications to serve on our Board of Directors include his many years of legal experience counseling boards of directors and senior management of public and private companies on a wide range of corporate and securities law issues, including mergers and acquisitions, securities offerings and corporate governance, regulatory compliance and other matters. | |
| 18 | GETTY REALTY 2023 Proxy Statement |
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Mary Lou Malanoski – | ||
 | Ms. Malanoski has served as a director of Getty since October 2018. She has also served as a member of the Audit Committee since October 2018, and as Chair of the Nominating/Corporate Governance Committee since April 2021. Ms. Malanoski is currently Chief Financial Officer of S2K Partners Co. LLC. Previously, she was the Chief Operating Officer at Morgan Joseph TriArtisan, an investment bank focused on the mid-market, where she also had served as Head of Banking and Chief Financial Officer. Prior to Morgan Joseph TriArtisan, she was a founder and principal of New Street Advisors, a boutique broker-dealer, and New Street Investments, a firm focused primarily on non-control investments in private companies. Prior to New Street Advisors, she was a senior team member at New Street Capital, a private investment firm which managed the assets of the reorganized Drexel Burnham Lambert. Ms. Malanoski began her career as an investment banker at Drexel Burnham Lambert. She is also a member of the Board of Directors for Phibro Animal Health Corporation and served as a member of the Board of Directors for Morgan Joseph TriArtisan from November 2005 until August 2021. Ms. Malanoski holds a B.A. from the Rosemont College and an M.B.A. from The Johnson School of Cornell University. Ms. Malanoski’s qualifications to serve on our Board of Directors include her over 30 years of experience on Wall Street in various roles. Ms. Malanoski is an accomplished leader and an experienced board member who brings a unique and independent perspective to our Board of Directors. | |
| GETTY REALTY 2023 Proxy Statement | 19 |
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Howard B. Safenowitz – | ||
 | Mr. Safenowitz has served as a director of Getty since December 1998 and was appointed as Chairman of the Board in April 2021. Prior to his appointment as Chairman, Mr. Safenowitz served as Lead Independent Director of Getty from February 2010 to March 2021, Chairman of the Nominating/Corporate Governance Committee from 2005 to March 2021, a member of the Compensation Committee from 1999 to March 2021, and a member of the Audit Committee from 2005 to March 2021. Together with attributed family interests, Mr. Safenowitz is one of the Company’s largest stockholders. Mr. Safenowitz is the President of Safenowitz Family Corp., an investment firm, since 1997. From 1990 to 2003, he was employed by The Walt Disney Company where he served as Senior Vice President, Business Affairs of Buena Vista Motion Pictures from March 2001 until April 2003 and prior thereto as Vice President, Business Affairs of Walt Disney Pictures and Television from 1996 until 2001. Mr. Safenowitz practiced corporate and transactional law in New York and California from 1983 until joining The Walt Disney Company in 1990. He also served as a director of Getty Petroleum Marketing Inc. from December 1998 until December 2000. Mr. Safenowitz holds a B.A. from the University of Rochester and a J.D. from Boston University School of Law. Mr. Safenowitz’s qualifications to serve on our Board of Directors include his significant experience with and knowledge of Getty, along with his prior service as a director of Getty Petroleum Marketing Inc. until December 2000, which together provide him with a valuable perspective on core business matters that face our Company. In addition, his experience as a corporate lawyer, as well as his position as the president of Safenowitz Family Corp. and his past leadership experience at The Walt Disney Company, have provided Mr. Safenowitz demonstrated leadership and management skills contributing to his value as an advisor to our Company. | |
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Committee Composition of our Board of Directors
The table below sets forth the Committee appointments of our current directors as of March 3, 2022. Following the retirement in February 2021 of Mr. Leo Liebowitz as Chairman of the Board, Mr. Safenowitz was appointed to the position of Chairman of the Board in April 2021.
6, 2023.
| Compensation Committee | Nominating/Corporate Governance Committee | Audit Committee | |
| Evelyn León Infurna | ü | ü | ü |
| Mary Lou Malanoski | üCC | ü | |
| Philip E. Coviello Jr. | ü | ü | üCC |
| Milton Cooper | üCC |
| = Member |
| üCC | = Committee Chair |
| 20 | |||
| GETTY REALTY 2023 Proxy Statement |
ü = Member
üCC = Committee Chair
Experience and Qualifications Represented on our Board of Directors
The matrix below represents some of the key experience and qualifications that our Board of Directors and Nominating/ Corporate Governance Committee has identified as particularly valuable to the effective oversight of the Company and the execution of our strategy. This matrix highlights the depth and breadth of experience and qualifications of our current directors.
| Experience/Qualification | Christopher J. Constant | Milton Cooper | Philip E. Coviello Jr. | Evelyn León Infurna | Mary Lou Malanoski | Howard B. Safenowitz | |||||
| Age | 44 | 94 | 79 | 59 | 66 | 64 | |||||
| Gender | Male | Male | Male | Female | Female | Male | |||||
| Director Since | 2016 | 1971 | 1996 | 2021 | 2018 | 1998 | |||||
| Independent (NYSE standards) | ü | ü | ü | ü | ü | ||||||
| REIT/Real Estate Experience | ü | ü | ü | ü | ü | ||||||
| Public Company Board Experience | ü | ü | ü | ü | ü | ü | |||||
| Public Company Executive Leadership | ü | ü | ü | ü | ü | ||||||
| Financially Literate | ü | ü | ü | ü | ü | ü | |||||
| Audit Committee Financial Expert | ü | ü | ü | ü | ü | ||||||
| Accounting Oversight | ü | ü | ü | ü | ü | ||||||
| Risk Oversight | ü | ü | ü | ü | ü | ||||||
| Capital Markets | ü | ü | ü | ü | ü | ||||||
| Mergers & Acquisitions | ü | ü | ü | ü | ü | ||||||
| Business Acumen/Leadership | ü | ü | ü | ü | ü | ü | |||||
| Legal/Compliance Oversight | ü | ü | ü | ü | ü | ||||||
| Corporate Governance/Ethics | ü | ü | ü | ü | ü | ü | |||||
| Human Resources/Compensation Practice | ü | ü | ü | ü | ü | ||||||
| Contributes to Board Diversity (based on race, national origin, ethnicity, religion, sexual orientation or identity, but excluding gender) | ü |
Recommendation
Experience/Qualification |
Christopher J. Constant |
Milton Cooper | Philip E. Coviello Jr. | Evelyn León Infurna |
MaryLou Malanoski | Richard E. Montag |
Howard B. Safenowitz |
| Age | 43 | 93 | 78 | 58 | 65 | 89 | 63 |
| Gender | Male | Male | Male | Female | Female | Male | Male |
| Director Since | 2016 | 1971 | 1996 | 2021 | 2018 | 2010 | 1998 |
| Independent (NYSE standards) | ü | ü | ü | ü | ü | ü | |
| REIT/Real Estate Experience | ü | ü | ü | ü | ü | ü | |
| Public Company Board Experience | ü | ü | ü | ü | ü | ü | ü |
| Public Company Executive Leadership | ü | ü | ü | ü | ü | ||
| Financially Literate | ü | ü | ü | ü | ü | ü | ü |
| Audit Committee Financial Expert | ü | ü | ü | ü | ü | ü | |
| Accounting Oversight | ü | ü | ü | ü | ü | ü | |
| Risk Oversight | ü | ü | ü | ü | ü | ü | |
| Capital Markets | ü | ü | ü | ü | ü | ||
| Mergers & Acquisitions | ü | ü | ü | ü | ü | ||
| Business Acumen/Leadership | ü | ü | ü | ü | ü | ü | ü |
| Legal/Compliance Oversight | ü | ü | ü | ü | ü | ü | |
| Corporate Governance/Ethics | ü | ü | ü | ü | ü | ü | ü |
| Human Resources/Compensation Practice | ü | ü | ü | ü | ü | ü | |
| Contributes to Board Diversity (based on race, national origin, ethnicity, religion, sexual orientation or identity, but excluding gender) |
ü |
The Board of Directors unanimously recommends that you vote “FOR” the election of each nominee for director.
Former Director
| Richard E. Montag – 90 | ||
 | At the meeting of the Board of Directors held on February 21, 2023, Mr. Montag retired from his role as a director of the Company and as a member of the Audit Committee. Mr. Montag had served as a director of Getty and a member of the Audit Committee since 2010. He had also served as a member of the Compensation Committee from 2010 to October 2022. Mr. Montag was a director of FNC Realty Corporation (f/k/a Frank’s Nursery & Crafts, Inc.) from 2004 until 2005; Enterprise Asset Management, Inc. from 2003 until 2004; Hills Stores Company from 1997 to 1998, and Getty Petroleum Marketing Inc. from 1996 until 2000. From 1982 until 1998, Mr. Montag was the Vice President of Real Estate Development for The Richard E. Jacobs Group, one of the most respected owners, developers, and managers of commercial real estate. | |
Corporate Governance and Related Matters
Board of Directors and Board Leadership Structure
OurAt the meeting of the Board of Directors held on February 21, 2023, Richard E. Montag retired from the Board of Directors. Accordingly, our Board of Directors is currently comprised of Christopher J. Constant, Milton Cooper, Philip E. Coviello, Mary Lou Malanoski, Richard E. Montag, Howard B. Safenowitz, and Evelyn León Infurna, who was appointed in July 2021 to fill the Board of Directors vacancy created by the retirement of Mr. Leo Liebowitz in February 2021.Mary Lou Malanoski, and Howard B. Safenowitz. Our Board of Directors is elected by the stockholders to oversee the performance of the Company’s business affairs and to set broad strategy for the Company’s growth. The Board of Directors acts as an advisor to senior management and monitors its performance. It also oversees the Company’s compliance efforts. To help discharge its responsibilities, the Board of Directors has adopted Corporate Governance Guidelines on significant corporate governance issues. The Corporate Governance Guidelines address, among other things, the size and composition of the Board of Directors, director independence, committee membership and structure, meetings and executive sessions, and director selection and training.
The Charters for each of the committees of the Board of Directors, the Corporate Governance Guidelines, and Getty’s Business Conduct Guidelines (which serve as our code of ethics under the Sarbanes-Oxley Act of 2002 and our code of business conduct and ethics under NYSE rules, and covers officers, employees and directors), may all be accessed through the Getty website at www.gettyrealty.com by clicking on “Investors/Corporate Governance”.
The Board of Directors and the Nominating/Corporate Governance Committee are committed to the needs of the Board of Directors and in evaluating possible director candidates will, pursuant to the Director Qualification Standards section of the Company’s Corporate Governance Guidelines, consider multiple factors including the independence, knowledge and judgment, financial literacy, breadth of skills, experience, perspective, and other attributes of a candidate, as well as diversity criteria such as race, gender, national origin, ethnicity, religion, or sexual orientation or identity. The Board of Directors and the Nominating/ Corporate Governance Committee do not assign specific weight to any particular criteria; the goal is to identify nominees that, considered as a group, will possess the skill sets and characteristics required of the Board of Directors to fulfill its responsibilities. TheHowever, the Nominating/Corporate Governance Committee is committed to prioritizing for nominations qualified director candidates who are “independent” as defined in the listing standards of the NYSE and who bring diversity to the Board of Directors on the basis of race, gender, national origin, ethnicity, religion, or sexual orientation or identity.
For the year ended December 31, 2022, our Board of Directors had seven members. Due to the retirement of Mr. Montag from the Board of Directors effective February 21, 2023, there is presently one vacancy on our Board of Directors. The Board of Directors has nominated six candidates for election as directors for a one-year term ending at the 2024 annual meeting of the Company’s stockholders and when their successors are duly elected and qualified. The Board of Directors has not undertaken to fill the vacancy created by Mr. Montag’s retirement. The Board may reevaluate the size of the Board of Directors. If the Board of Directors decides to fill the vacancy created by Mr. Montag’s retirement, our Nominating/Corporate Governance Committee is committed to prioritizing for nomination a qualified director candidate who is “independent” as defined in the listing standards of the NYSE and who brings diversity to the Board of Directors on the basis of race, gender, national origin, religion, or sexual orientation or identity, in addition to satisfying criteria based on relevant experience and breadth of skills. (For additional information regarding the factors considered in evaluating our director candidates, see “Nominating/Corporate Governance Committee” discussion on pages 23-25page 25 of this Proxy Statement.)
The Charters for each of the committees of the Board of Directors, the Corporate Governance Guidelines, and Getty’s Business Conduct Guidelines (which serve as our code of ethics under the Sarbanes-Oxley Act of 2002 and our code of business conduct and ethics under NYSE rules, and covers officers, employees and directors), may all be accessed through the Getty website at www.gettyrealty.com by clicking on “Investors/Corporate Governance”. In addition to our website availability, copies of any of the Charters for each of the committees of the Board of Directors, the Corporate Governance Guidelines, and/or Getty’s Business Conduct Guidelines may also be obtained by submitting a written request to Mr. Joshua Dicker, Executive Vice President, General Counsel and Secretary, at the address for Getty’s executive offices provided in this Proxy Statement. The Business Conduct Guidelines apply to all employees, officers and directors of the Company and waivers of the Business Conduct Guidelines for directors or executive officers, if any, will be disclosed as required by the rules and regulations of the SEC. There were no such waivers in 2021.2022.
For the year ended December 31, 2021, our Board of Directors had seven members. The Board of Directors has nominated seven candidates for election as directors for a one-year term ending at the 2023 annual meeting of the Company’s stockholders and when their successors are duly elected and qualified.
The Board of Directors does not have a policy regarding the separation of the roles of Chief Executive Officer (“CEO”) and Chairman of the Board, as the Board of Directors believes it is in the best interests of the Company for the Board of Directors to have the flexibility to make the determination whether the same person should serve as both the CEO and Chairman of the Board at any given point in time, or whether the roles should be separate, depending on, among other factors, the position and direction of the Company and the membership of the Board of Directors. The Board of Directors believes that its current leadership structure, with separate Chairman and CEO positions, is appropriate for the Company because it separates the leadership of the Board of Directors from the day to dayday-to-day leadership of the Company. The Board of Directors believes that separating the position of Chairman from the CEO better positions the Board of Directors to evaluate the performance of management and enables the Chairman to provide guidance to the CEO.
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Following the retirementTable of Mr. Liebowitz, Contents
Corporate Governance and Related Matters(continued)
Mr. Safenowitz was appointed to the position of Chairman of the Board in April 2021. Prior to his appointment as Chairman, Mr. Safenowitz served as the Company’s Lead Independent Director and in that capacity presided over executive sessions of the Company’s independent Directors, facilitated information flow and communication among the Directors, and performed such other Lead Independent Director duties as were specified by the Board.Board of Directors. In view
Corporate Governance and Related Matters(Continued)
of the facts that the Company currently has separate CEO and Chairman positions and that the Company’s Chairman is an “independent” director as defined in the listing standards of the NYSE and satisfies duties otherwise applicable to the Lead Independent Director, the Board of Directors has determined not to designate a separate Lead Independent Director but reserves the right to do so in the future if circumstances dictate.future.
In his role as the Chairman of the Board, Mr. Safenowitz is responsible for enhancing the effectiveness of the Board of Directors, in particular by ensuring that the Board of Directors works as a cohesive team; ensuring that the Board of Directors has adequate resources and that there is a process in place to assure that the Board of Directors is presented with full, timely and relevant information; ensuring that there is a process in place to monitor best practices that relate to the responsibilities of the Board of Directors; and assessing the effectiveness of the overall Board of Directors and individual directors on a regular basis. The Chairman is also responsible for management of the Board of Directors, in particular by providing oversight on the agendas for Board of Directors meetings; consulting with the CEO regarding the membership and the chairs for Board of Directors committees; ensuring that the independent directors meet regularly without management present to discuss the effectiveness of the CEO and the Board of Directors; and by chairing Board of Directors meetings and executive sessions of the Company’s independent Directors. The Chairman is invited to attend all meetings of Committees of the Board and receives corresponding Committee documentation in advance of the meetings.
In his role as the CEO, Mr. Constant is responsible for setting a strategic vision for the Company and seeking to align the Company, internally and externally, with that strategic vision. In addition, Mr. Constant, as CEO, is responsible for day to dayday-to-day leadership of the Company, promoting Company performance through his leadership, and leading the Company in the execution of its business plan. Our CEO also serves on our Board of Directors, which we believe helps the CEO to serve as a bridge between management and the Board of Directors, ensuring that both groups act with a common purpose. We believe that the CEO’s presence on the Board of Directors enhances his ability to provide insight and direction on important strategic initiatives to both management and the independent directors and, at the same time, ensures that the appropriate level of independent oversight is applied to all decisions by the Board of Directors.
Role of Board of Directors in Risk Oversight
It is management’s responsibility to assess and manage the various risks the Company faces and the Board of Directors’ responsibility to oversee management in this effort. In exercising its oversight, the Board of Directors has delegated primary responsibility for risk assessment and risk management oversight to the Audit Committee. Under its Charter, the Audit Committee’s responsibilities include discussing with management the Company’s policies with respect to risk assessment and risk management and the Company’s material financial risk exposures and the actions management has taken to limit, monitor or control such exposures. The Audit Committee also oversees risk and conducts reviews on a quarterly, or as needed, basis, including by working with management, and reviewing cybersecurity risk mitigation policies and initiatives and information security risks. The Audit Committee receives quarterly reports from management on the Company’s enterprise risk management practices and risk mitigation efforts. These quarterly reports from management to the Audit Committee also cover the Company’s risk assessment and risk management actions regarding information security and data privacy risks. In 2022, the Company engaged an outside consultant to conduct a cybersecurity assessment, the methodology for which was based on information security frameworks and guidelines such as the National Institute of Standards and Technology (NIST), Center for Information Security (CIS), and ISO27001. The Company received the results of the assessment in December 2022, which management reviewed with the Audit Committee during the first quarter of 2023. For additional information regarding the Audit Committee’s role in assisting the Board of Directors in its oversight of risk assessment and risk mitigation, including with respect to information security and data protection, see the “Report of the Audit Committee—Oversight Responsibilities—Enterprise Risk Management” and “—Information Security and Data Protection” sections on pages 47-48page 54 of this Proxy Statement. Effective as of February 21, 2023, the Audit Committee’s Charter was revised to clarify that the Audit Committee’s oversight responsibilities for risk assessment and risk management expressly includes responsibility for climate related risks in the Company’s financial statements as and to the extent required by the applicable rules and regulations promulgated by the SEC or FASB. The Audit Committee also oversees the Company’s legal and regulatory requirements, the
| GETTY REALTY 2023 Proxy Statement | 23 |
Corporate Governance and Related Matters(continued)
independent auditors’ qualifications and independence, the performance of the Company’s internal audit function and the independent auditors, and the Company’s compliance programs, including the Company’s Business Conduct Guidelines, and Complaint and Investigation Procedures. Our full Board of Directors regularly reviews the Company’s strategic plans and objectives, including the risks that may affect the achievement of these strategic plans and objectives.
Independence of Directors
The Board of Directors has determined that Ms.Mses. Malanoski Ms.and Infurna, and Messrs. Cooper, Coviello Montag and Safenowitz, are “independent” as defined in the listing standards of the NYSE. During his tenure on the Board of Directors since the 2022 annual meeting, Mr. Montag was also determined by the Board of Directors to be “independent” as defined in the listing standards of the NYSE. In making these determinations, the Board of Directors considered all relevant facts and circumstances, including the independence standards set forth in Section 303A.02 of the rules of the NYSE. The Board of Directors affirmatively determined that none of the directors, or any of their respective family members, other than Mr. Constant, has had any relationship with Getty (either directly or as a partner, stockholder or officer of an organization that has a relationship with Getty), other than as a stockholder and director of Getty. Accordingly, the Board of Directors has affirmatively determined that each of the directors, other than Mr. Constant, is “independent.”
Corporate Governance and Related Matters(Continued)
It has been and will continue to be the practice of the Board of Directors to meet at least quarterly each year and have the Chairman of the Board of Directors chair such meetings. Additionally, it has been the practice of the independent directors to meet in executive session at least quarterly each year, and to have the Company’s Lead Independent Director chair such sessions.year. Mr. Safenowitz chaired executive sessions of the Company’s independent Directors duringin his tenurecapacity as the Company’s Lead Independent Director between February 2010 and March 2021 and has continued to do so as an independent Director since his appointment to the position of Chairman of the Board in April 2021.
Directors’ Meetings
During the year ended December 31, 2021,2022, the Board of Directors held five (5)four (4) meetings. Each of the directors nominated for election at the Annual Meeting attended all of the 20212022 meetings of the Board of Directors, during the period in which he or she was eligible to attend, and all of the 20212022 meetings of Committees of the Board of Directors on which such director served in 2021.at the time such meeting was held. Each of the directors nominated for election at the Annual Meeting also attended the annual meeting of stockholders in April 2021 in which he2022.
The Board of Directors encourages all of its director nominees for election or she was eligiblereelection at its annual meetings to attend.attend such annual meeting.
Committees
The Board of Directors has an Audit Committee, a Nominating/Corporate Governance Committee and a Compensation Committee, the membership and functions of which are described below.
Audit Committee
The Audit Committee met four (4) times in 2021.2022. The Audit Committee for the year ended December 31, 2021,2022, consisted of Messrs.Mr. Coviello (Chairman) and, Mr. Montag and Ms. Malanoski. Mr. Montag retired from the Board of Directors and resigned as a member of the Audit Committee on February 21, 2023, and immediately following his resignation Ms. Infurna was appointed to the Audit Committee to fill the vacancy. Accordingly, as of the date of this Proxy Statement, the Audit Committee is comprised of Mr. Coviello (Chairman), and Mses. Malanoski and Infurna. The Audit Committee selects the independent registered public accounting firm that audits the consolidated financial statements of Getty and its subsidiaries, discusses the scope and the results of the audit with our independent registered public accounting firm, and monitors Getty’s financial accounting and reporting practices. The Audit Committee also examines and discusses the adequacy of Getty’s internal control over financial reporting with the independent registered public accounting firm, our internal auditors, and with management. The Board of Directors has designated the Audit Committee to take the lead in overseeing our risk assessment and risk management, including with respect to information security and data protection along with overseeingand climate related risks in the Company’s financial statements as and to the extent required by the applicable rules and regulations promulgated by the SEC or FASB. The Board of Directors has also designated the Audit Committee to oversee compliance with legal and regulatory requirements, the independent auditors’ qualifications and independence, the performance of the Company’s internal audit function and the independent auditors, and the Company’s compliance programs, including the Company’s
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Corporate Governance and Related Matters(continued)
Business Conduct Guidelines, and Complaint and Investigation Procedures. In addition to regular meetings, at least one Audit Committee member (historically, the Chairman) meets telephonically with management and Getty’s independent auditors to review the Company’s quarterly reports and other reports, as appropriate, prior to their full presentation to the Audit Committee and subsequent filing with the SEC. The Audit Committee met with management and Getty’s independent auditors to review the Company’s audited financial statements for the year ended December 31, 20212022 and recommended to the Board of Directors that the financial statements be included in the Company’s Annual Report on Form 10-K for such year. See “Role of Board of Directors in Risk Oversight” on page 2123 of this Proxy Statement and the “Report of the Audit Committee—Oversight Responsibilities—Enterprise Risk Management” on page 4753 of this Proxy Statement for a discussion of the Audit Committee’s role in risk assessment and risk management oversight. Additionally, the Audit Committee reviews and discusses with management management’s specific disclosures contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Please also see the “Report of the Audit Committee” included at page 4753 in this Proxy Statement.
The Board of Directors determined that for the year ended December 31, 2021,2022, each member of the Audit Committee (a) was (1) “independent” and (2) “financially literate” as such terms are defined in the listing standards of the NYSE and (b) met the independence tests set forth in Section 301 of the Sarbanes-Oxley Act of 2002 and regulations promulgated thereunder by the SEC and the criteria applicable to members of the Audit Committee under NYSE rules. The Board of Directors also determined that for the year ended December 31, 2021,2022, Ms. Malanoski and Mr. Coviello, and, Mr. Montagas of her appointment to the Audit Committee on February 21, 2023, Ms. Infurna, each qualified as an “audit committee financial expert” under the relevant rules of the SEC, and that each of Ms. Malanoski, Mr. Coviello and Mr. MontagMs. Infurna have the requisite accounting/financial management expertise required by the listing standards of the NYSE.
The Charter of the Audit Committee provides that members of the Audit Committee may not be members of the audit committee of more than two other public companies unless such other memberships have been disclosed to the Board of Directors and the Board of Directors has determined that such simultaneous service does not impair the ability of such member
Corporate Governance and Related Matters(Continued)
to serve effectively on the Audit Committee. None of the Audit Committee members served on the audit committee of more than two other public companies during 2021.2022.
In February 2022,2023, the Audit Committee amendedrevised the Audit Committee’s Charter to codifyclarify that the Audit Committee’s long-standing practice of overseeing the Company’s policies and procedures related to risk assessment and risk management includingexpressly includes responsibility for climate related risks in the Company’s financial statements as and to the extent required by the applicable rules and regulations promulgated by the SEC or FASB, in addition to its then existing risk oversight responsibilities with respect to information security and data protection. For additional information regarding the Audit Committee’s role in assisting the Board of Directors in its oversight of risk assessment and risk mitigation, including with respect to information security and data protection, see the “Report of the Audit Committee—Oversight Responsibilities—Enterprise Risk Management” and “—Information Security and Data Protection” sections on pages 47-48page 53 and 54 of this Proxy Statement.
Nominating/Corporate Governance Committee
The Nominating/Corporate Governance Committee met two (2) times in 2021.2022. The Nominating/Corporate Governance Committee for the year ended December 31, 20212022 consisted of Ms. Malanoski (Chair), Mr. Coviello and Ms. Infurna (who was appointed as of July 2021), and Mr. Coviello.Infurna. The Nominating/Corporate Governance Committee recommends nominees for election to the Board of Directors and reviews the role, composition and structure of the Board of Directors and its committees. As part of this review, the Committee evaluates (i) whether to have a Lead Independent Director, (ii) the responsibilities of the positions of Chairman of the Board and Lead Independent Director, and (iii) the qualifications for those positions, including whether the position of Chairman of the Board of Directors should be held by the Chief Executive Officer, an independent director, or a non-independent director other than the Chief Executive Officer. The Nominating/Corporate Governance Committee also recommends candidates to the Board of Directors for election as officers.
Responsibility for Director Nominations
For a discussion of the specific experience, qualifications, attributes or skills of the nominees for election to the Board of Directors, see the “Nominees for Election at the Annual Meeting” and “Experience and Qualifications Represented on the Board”our Board of Directors” sections beginning on page 15pages 17 and 21, respectively, of this Proxy Statement.
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Corporate Governance and Related Matters(continued)
The Director Qualification Standards section of the Company’s Corporate Governance Guidelines affirms the benefits of diversity among the Board of Directors by specifically stating that (i) diversity (based on factors commonly associated with diversity such as race, gender, national origin, ethnicity, religion, or sexual orientation or identity, as well as on broader principles such as diversity of perspective and experience) is one of the elements to be considered in evaluating a particular director candidate, and (ii) the Nominating/Corporate Governance Committee is responsible for assessing the appropriate balance of skills and characteristics required of members of the Board of Directors and will actively seek to broaden the diversity composition of the Board of Directors. The Nominating/Corporate Governance Committee does not assign specific weight to any particular criteria; the goal is to identify nominees that, considered as a group, will possess the skills and characteristics required of the Board of Directors to fulfill its responsibilities. Consistent with these guiding principles, the Nominating/ Corporate Governance Committee again recommended that the Board of Directors nominate for continued service as directors all sevensix of our current directors, based upon their respective (i) personal and professional integrity, ethics and values, (ii) educational and professional background, (iii) experience in corporate management and/or experience as a board member, (iv) experience in the real estate industry and/or other relevant industry experience, (v) high level of financial literacy (including all sevensix of our current directorsdirector nominees having been determined by the Board of Directors to be “financially literate,” as such term is defined in the listing standards of the NYSE), and (vi) ability to foster a diverse viewpoint based on gender and other factors commonly associated with diversity such as race, gender, national origin, ethnicity, religion, or sexual orientation. Moreover, the Nominating/Corporate Governance Committee again recommended that the Board of Directors nominate for continued service as directors sixfive out of sevensix of our current directors for their “independence,” as defined by the NYSE listing standards. In addition, while our Board of Directors may elect to reevaluate the size of the Board of Directors, if the Board of Directors elects to fill the vacancy on the Board of Directors created by Mr. Montag’s retirement the Nominating/Corporate Governance Committee is committed to prioritizing for nomination a qualified director candidate who is “independent” as defined in the listing standards of the NYSE and who brings diversity to the Board of Directors on the basis of race, gender, national origin, religion, or sexual orientation or identity, in addition to satisfying criteria based on relevant experience and breadth of skills. The Nominating/Corporate Governance Committee reserves the right to recommend and nominate additional members to the Board of Directors from time to time.
The Company’s Corporate Governance Guidelines do not include mandatory retirement ages or term limits applicable to directors. The Nominating/Corporate Governance Committee annually reviews the performance and qualifications of each current director and considers the results of such evaluation when determining whether or not to recommend the nomination of such director for an additional term. In addition, although the Nominating/Corporate Governance Committee considers length
Corporate Governance and Related Matters(Continued)
of service when recommending candidates for re-election, the Board of Directors does not believe that adopting a set term limit for directors serves the interests of the Company. Such limits may result in the loss of contributions from directors who have been able to develop, over a period of time, increasing insight into the Company, its operations and its strategic direction. The Nominating/Corporate Governance Committee reviews these policies as part of its annual governance review and will consider modifications to these policies as deemedit deems necessary or appropriate and in the best interests of the Company and its stockholders.
The Board of Directors has determined that each member of the Nominating/Corporate Governance Committee is “independent” as such term is defined in the listing standards of the NYSE. The Nominating/Corporate Governance Committee Charter includes policies with regard to stockholder recommendations of nominees to the Board of Directors.
Stockholders wishing to recommend candidates for election to the Board of Directors must supply information in writing regarding the candidate to Mr. Joshua Dicker, Executive Vice President, General Counsel and Secretary of the Company, at the Company’s executive offices. This information should include the candidate’s name, biographical data and an analysis of the candidate based on the director candidate criteria described below. The recommendation must also include all information relating to the proposed director nominee that would be required to be disclosed in a solicitation of proxies for election of directors in an election contest under applicable securities law. Stockholders wishing to nominate a candidate must comply with the advance notice requirements in our Bylaws. Please refer to our Bylaws for more specific information. Our Bylaws were publicly filed with the SEC on November 14, 2011, as amended February 26, 2019 and February 23, 2022, and publicly filed with the SEC on February 27, 2019.2019 and February 25, 2022. In addition to satisfying the requirements of our Bylaws, in order to comply with universal proxy rules, stockholders who intend to solicit proxies in support of director nominees other than the Company’s must also provide notice that sets forth the information required in and meets the advance notice requirements of Rule 14a-19 of the Securities Exchange Act of 1934, as amended. Additional information regarding any proposed nominees may be requested by the Nominating/Corporate Governance Committee.
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Corporate Governance and Related Matters(continued)
Pursuant to the Nominating/Corporate Governance Committee Charter and/or the Company’s Corporate Governance Guidelines, each nominee must possess fundamental qualities of intelligence, honesty, good judgment, and high standards of ethics, integrity, fairness and responsibility. The Nominating/Corporate Governance Committee will also will consider the following criteria in addition to other criteria the Committee deems appropriate, including the specific needs of the Board of Directors at the time:
| ■ | personal and professional integrity, ethics, and values; |
| ■ | experience in corporate management, such as serving as an officer or former officer of a publicly held company; |
| ■ | the director’s past attendance at meetings and participation in and contributions to the activities of the Board of Directors (if applicable); |
| ■ | ability to make independent analytical inquiries, general understanding of marketing, finance and other elements relevant to the success of a publicly traded company in today’s business environment; |
| ■ | experience in our industry and with relevant social policy concerns; |
| ■ | understanding of our business on a technical level; |
| ■ | educational and professional background and/or academic experience in an area of our operations; |
| ■ | experience as a board member of another publicly held company; |
| ■ | practical and mature business judgment, including ability to make independent analytical inquiries; |
| ■ | “independence,” as defined by the NYSE listing standards; |
| ■ | financial literacy; |
| ■ | standing in the community; |
| ■ | diversity based on factors commonly associated with diversity such as race, gender, national origin, ethnicity, religion, or sexual orientation or identity, as well as on broader principles such as diversity of perspective and experience; and |
| ■ | ability to complement the Board of Directors’ existing strengths. |
Corporate Governance and Related Matters(Continued)
In reviewing prospective nominees, the Nominating/Corporate Governance Committee also reviews the number of public company boards on which a director nominee serves to determine if the nominee will have the ability to devote adequate time to the work of the Board of Directors and its committees. The Company’s Corporate Governance Guidelines and the Company’s Audit Committee Charter provide that members of the Audit Committee may not be members of the audit committee of more than two other public companies unless such other memberships have been disclosed to the Board of Directors and the Board of Directors has determined that such simultaneous service does not impair the ability of such member to effectively serve on the Company’s Audit Committee. In addition, the Company’s Corporate Governance Guidelines provide that non-management directors may not serve on more than four other boards of public companies (excluding the Company’s Board of Directors) and that management directors may not serve on more than two boards of public companies (including the Company’s Board of Directors).
On the basis of the information gathered in this process, the Nominating/Corporate Governance Committee will determine which nominees to recommend for election to the Board of Directors. Recommendations and related information received prior to any Nominating/Corporate Governance Committee meeting where director nominees are to be considered will be considered at that meeting. The Nominating/Corporate Governance Committee uses the same process for evaluating all nominees, regardless of the source of the recommendation. This process includes, among other things, personal interviews, discussions with professional references, background checks, credit checks and resume verification.
The Nominating/Corporate Governance Committee has not received any recommendation for a director nominee for the Annual Meeting from any stockholder or group of stockholders.
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Corporate Governance and Related Matters(continued)
Governance Oversight—Sustainability Reporting and Policies and Procedures; Stockholder Ability to Amend the Company’s Bylaws; Opt Out of the Maryland Unsolicited Takeover Act
On February 23, 2022, the Nominating/Corporate Governance Committee amended the Nominating/Corporate Governance Committee’s Charter to codify the Committee’s role overseeing the Company’s sustainability reporting and its policies and procedures with respect to its sustainability and corporate social responsibility activities. In June 2022, under the expanded oversight of the Nominating/Corporate Governance Committee, the Company published its inaugural Corporate Responsibility Report. For additional information regarding the Company’s sustainability and corporate social responsibility activities, see the “Corporate Responsibility—Environmental Practices, Social Responsibility and Governance” section on page 2730 of this Proxy Statement.
In addition, on February 23, 2022,based upon the recommendation of our Nominating/Corporate Governance Committee, carefully considered the advantages and disadvantages of adopting a change to both our Charter and Bylaws to allow for both our stockholders, as well as our Board of Directors to alter, repeal, amend or rescind any provision of the Bylaws and to make new Bylaws on the terms set forth in the form of Articles of Amendment attached to this Proxy Statement on Appendix A andamended Article XIV of the Bylaws respectively. Based upon its evaluation, our Nominating/Corporate Governance Committee recommended that (a) our Board of Directors amend Article XIV of the Bylaws, effective upon adoption, to provide that in addition to the power of our Board of Directors to alter, repeal, amend or rescind any provision of the Bylaws and to make new Bylaws, the Company’s stockholders have the power to alter, repeal, amend or rescind the Bylaws or to make new Bylaws by the affirmative vote of the holders of a majority of the outstanding shares of common stock of the Company entitled to vote on the matter pursuant to a binding proposal timely submitted by a stockholder (or stockholder group) that satisfies the ownership and other eligibility requirements of Rule 14a-8 of the Securities Exchange Act of 1934, as amended, for the periods and as of the dates specified in Rule 14a-8, and (b)14a-8. At our Board of Directors authorize2022 annual meeting, our stockholders approved an analogous amendment to our Charter. Based upon(Additional information about the recommendation ofCharter Amendment is contained under the Nominating/Corporate Governance Committee, our Board of Directors amended Article XIV of our Bylaws consistent with the Nominating/Corporate Governance Committee’s recommendation and determined an amendment to our Charter consistent with the Nominating/Corporate Governance Committee’s recommendation was advisable and determined to submit to our stockholders pursuant to this Proxy Statement. Please seecaption “Proposal No. 4—4: Approval of the Charter Amendment Proposal (Item No. 4 onProposal” in the Proxy Card)”Company’s definitive proxy statement for additional information.
On February 23, 2022, in connection with its recommendations to the Board to provide our stockholdersAnnual Meeting filed with the power to alter, repeal, amend or rescindSecurities and Exchange Commission on March 17, 2022.) In February 2022, our Board of Directors, based upon the Bylaws or to make new Bylaws, therecommendation of our Nominating/Corporate Governance Committee, also recommended to our Board of Directors that it adoptadopted a resolution prohibiting the Company from electing to be subject to the provisions of Title 3, Subtitle 8 of the Maryland General Corporations Law (“MGCL”) contained in Section 3-803 of the MGCL (relating to classification of the board), unless such election is first approved by the stockholders of the Company by the affirmative vote of at least a majority of the votes cast on the matter by stockholders entitled to vote generally in the election of directors. As previously reported by the Company, our Board of Directors adopted such a resolution consistent with the recommendation of the Nominating/Corporate Governance Committee and Articles Supplementary memorializing the resolution were filed with the Maryland State Department of Assessments and Taxation on February 24, 2022.
Corporate Governance and Related Matters(Continued)
Compensation Committee
The Compensation Committee met two (2) times in 2021.2022. The Compensation Committee for the year ended December 31, 2021,2022, consisted of Messrs. Cooper (Chairman), and Coviello, and Montag.Ms. Infurna. Ms. Infurna was elected to the Compensation Committee in October 2022, following Mr. Montag’s resignation from such Committee. Ms. Infurna and Mr. Montag each attended one meeting of the Compensation Committee in 2022 in her or his respective capacity as a member of such Committee. The Compensation Committee is responsible for developing and, with the approval of the Board of Directors, implementing the compensation plans, policies and programs of the Company and producing an annual report on executive compensation for inclusion in the Company’s proxy materials in accordance with applicable rules and regulations. It is the Compensation Committee’s responsibility to ensure that compensation programs are designed to encourage high performance and promote accountability and assure that employee interests are aligned with the interests of the Company’s stockholders. The Board of Directors has determined that each member of the Compensation Committee is “independent” as such term is defined in the listing standards of the NYSE.
The Compensation Committee also administers the Supplemental Retirement Plan for Executives of Getty Realty Corp. and Participating Subsidiaries (the “Supplemental Retirement Plan”) and the Getty Realty Corp. Third Amended and Restated 2004 Omnibus Incentive Compensation Plan (the “2004 Plan”) and. The Compensation Committee also reviews, approves and recommends to the Board of Directors for its approval, the compensation of the directors and each of the named executive officers of Getty.
The Compensation Committee’s Charter provides that the Committee may delegate any or all of its responsibilities, except that the Committee may not delegate its responsibilities with respect to:
| ■ | its annual review and recommendation to the Board for approval of compensation for |
| ■ | its approval, evaluation and |
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Corporate Governance and Related Matters(continued)
| ■ |
| its management and annual review of, and responsibilities with respect to |
| ■ | any other matters that involve executive officer compensation. |
The compensation of Getty’s named executive officersNEOs is recommended by the CEO to the Compensation Committee. The CEO reviews the performance of each executive officerNEO (other than his own) with the Compensation Committee. The Compensation Committee considers the CEO’s recommendations, evaluates the CEO’s individual performance and establishes the compensation for each named executive officer,NEO, including the CEO. The CEO does not play any role in the Compensation Committee’s deliberation of matters impacting his own compensation. No executive officer other than the CEO plays a role in determining or recommending the amount or form of executive compensation.
In October 2021,February 2022, in connection with its annual review, the Compensation Committee amended the Compensation Committee’s Charter to no longer require that it, at least annually, review all compensation for employees with a base salary greater than or equal to $150,000. In addition, the Compensation Committee, in February 2022, further revised its charter to clarify its duties with respect to compensation for directors, executives, and employees, to update certain provisions that are no longer applicable, and to enhance its compliance with applicable rules and regulations of the NYSE and SEC. In February 2023, the Compensation Committee further revised the charter to clarify such provisions and provide the Compensation Committee the authority to adopt or modify clawback, anti-hedging, and anti-pledging policies to be recommended to the Board of Directors.
Contacting the Board of Directors
Stockholders and other interested parties who wish to communicate with the Board of Directors may do so by sending written communications to the Board of Directors at the following address: Board of Directors, Getty Realty Corp., 292 Madison Avenue, 9th Floor, New York, New York 10017-6376. Stockholders and other interested parties who wish to direct their communications to only the independent (non-management) directors of Getty may do so by sending written communications to the following address: Independent Directors, c/o Getty Realty Corp., 292 Madison Avenue, 9th Floor, New York, New York 10017-6376. Concerns relating to accounting, internal controls or auditing matters are handled in accordance with procedures established by the Audit Committee with respect to such matters.Committee.
Corporate Governance and Related Matters(Continued)
Executive Officers
The Company’s executive officers are as follows:
| ■ | Mr. Christopher J. Constant, age |
| ■ | Mr. Joshua Dicker, age |
| ■ | Mr. Brian R. Dickman, age |
| ■ | Mr. Mark J. Olear, age |
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Corporate Governance and Related Matters(continued)
responsibility over his 30-year career in real estate acquisitions, development and construction, most notably as Senior Director - Real Estate with Home Depot and Senior Vice President Real Estate with TD Bank. Mr. Olear is also a member of the Board of Trustees for Springpoint Senior Living. Mr. Olear earned a B.A. in Business Administration from Upsala College.
There are no family relationships between any of the Company’s directors or executive officers.
Corporate Responsibility—Environmental Practices, Social Responsibility and Governance
We are committed to good corporate citizenship and business practices that serve all of our stakeholders. We recognize the importance of environmental, social and governance (“ESG”) issues and incorporate ESG considerations into our business practices and decision-making processes.
In June 2022, we published our inaugural Corporate Responsibility Report which gave us an opportunity to more fully discuss our approach to corporate responsibility and the emphasis we place on our people, our planet, and our business practices.
Notable ESG initiatives conducted in 2022/2023 included:
| ■ | Launching our Getty Green Loans program which offers low-cost loans to our tenants for qualified environmental and sustainability projects; |
| ■ | Engaging with an outside consultant to conduct a Materiality Assessment to identify ESG topics most relevant to our internal and external stakeholders, in order to evaluate alignment with our ESG strategies and identify potential ESG opportunities; |
| ■ | Engaging with an outside consultant to conduct a formal Tenant Survey seeking our tenants’ feedback regarding sustainability measures and initiatives already implemented or that may be implemented at our properties in order to identify potential ESG opportunities; and |
| ■ | Achieving success with our inaugural Getty Gives campaign and pro bono legal program, both launched in June 2022 to provide our team with formal platforms to support causes dear to us and the communities in which we live and work, including corporate donations to charitable organizations selected by our employees, company matching for employee charitable donations, legal services to advance the public interest, and additional paid time off for employee volunteer opportunities. |
The results of these initiatives will be discussed in our 2023 Corporate Responsibility Report, which is scheduled to be published in June 2023. We look forward to continuing our ESG efforts to demonstrate our commitment to effective ESG practices that support our business, our communities, and our stakeholders.
Our Planet: Environmental Stewardship
We own assets subject to long-term, triple-net leases that generally require our tenants to maintain the properties they occupy, including the environmental impact of their operations and any sustainability initiatives they choose to implement during the term of their tenancy. We take appropriate measures, including enforcement when necessary, to assure that our tenants comply with these lease provisions for the benefit of the environment and the communities in which our properties are located.
Our Property Portfolio
We are committed to investing responsibly and managing the environmental risks throughout our business practices.
Environmental Due Diligence. Diligence. Our acquisition due diligence process includes extensive environmental review and analysis conducted by experts in convenience and automotive retail real estate. This process includes environmental site assessments of each property (Phase I) as part of our analysis to understand the environmental condition of the property, including whether there is indication of any release of hazardous substances, chemical or waste storage, or other environmental concerns or risks, and to determine whether the property and the operations thereon meet environmental standards. We will not acquire a property unless we are satisfied with the results of our environmental due diligence and, once closed, our leases require our tenants to comply with all environmental laws, rules and regulations.
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Corporate Governance and Related Matters((Continued)continued)
Environmental Compliance. Compliance. Our asset management and environmental teams continuously monitor our properties for potential contamination, exposure to natural disasters and other environmental risks, including:
| ■ | Requiring comprehensive environmental provisions in our leases that require our tenants to comply with applicable environmental laws and remediate or take other corrective action should any environmental issues |
| ■ | Maintaining comprehensive pollution insurance coverage for our properties with higher environmental risk exposure, thus ensuring that should an unforeseen environmental issue arise there is supportive financial resources available to conduct safe and timely |
| ■ | Preparing for natural disasters by carrying appropriate insurance coverage for our properties that we believe is adequate given the relative risk of loss, insurance coverages provided by our tenants and industry best |
| ■ | If applicable, requiring the seller to provide for remediation of environmental impacts in compliance with applicable laws prior to acquiring the property. |
Sustainability at Our Properties. Properties. We support and encourage our tenants’ sustainability initiatives and recently implemented our Getty Green Loans program to providemake low-cost loans available to our tenants for the express purpose of investing in environmental and sustainability projects. As a net lease landlord, we trust our tenants to identify the investments they deem appropriate to successfully operate their business at each siteproperties we own. With Getty Green Loans, we hope to reinforce our positioncommitment as a business partner, while providing additional incentive to prioritize green projects as they continue to enhance their operations and our properties.
Sustainability Reporting and Policies and Procedures. Procedures. On February 23, 2022, the Nominating/Corporate Governance Committee amended the Nominating/Corporate Governance Committee’s Charter to codify the Committee’s role overseeing the Company’s sustainability reporting and its policies and procedures with respect to its sustainability and corporate social responsibility activities. Earlier this year,In 2022, we provided initial disclosures regarding our ESG programs on our website and in our quarterly corporate profile and later this year the Company will expandexpanded our sustainability reporting practices with the publication of our first standaloneinaugural Corporate Responsibility Report in June 2022.
In 2022, we also partnered with an outside Environmental, Health, Safety and Sustainability (EHS&S) consulting firm to develop and conduct a formal Tenant Survey seeking our tenants’ feedback regarding sustainability report.measures and initiatives implemented, or that may be implemented, at our properties, as well as information regarding our tenants’ current ESG policies and practices. We expect the Tenant Survey results to assist us in identifying potential ESG opportunities that support our business and our tenants’ businesses. The Tenant Survey was distributed to 39 of our tenants, representing 952, or 92%, of our properties and $141 million, or 91%, of our annual base rental income. We expect to provide additional information regarding our Tenant Survey in our 2023 Corporate Responsibility Report.
We also worked with our EHS&S consulting firm to develop and conduct a Materiality Assessment to help us identify the ESG topics most relevant to our internal and external stakeholders. The Materiality Assessment included a survey distributed to select internal and external stakeholders as well as interviews with select representative stakeholders. We expect that the results of this Materiality Assessment will help us identify any gaps in our current ESG program and allow us to better understand additional opportunities that we could pursue as part of our ESG efforts. The Materiality Assessment was distributed to 39 of our internal stakeholders (employees and Board of Directors) and 62 of our select external stakeholders (tenants, investors, lenders, research analysts, and rating agencies). We expect to provide additional information regarding our Materiality Assessment in our 2023 Corporate Responsibility Report.
Sustainability at Our Corporate Headquarters
We emphasize sustainability at our corporate headquarters, including:
| ■ | Energy efficient computer equipment, filtered water machines to promote water conservation and eliminate single-use plastics, and timed or sensor-controlled HVAC and lighting systems. |
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Corporate Governance and Related Matters(continued)
| ■ | Our office policies include various recycling programs (such as aluminum, paper, and plastic), no plastic cups, dishware, or utensils, and a commitment to reduce paper use and use recycled paper where possible. |
| ■ | Our commuter benefits program encourages the use of public transportation or ride |
Our People: Social Responsibility and Human Capital Development
We believe that our people are the foundation of our success and are committed to providing a safe and healthy workplace that allows our team members to engage professionally and personally. We foster a diverse and inclusive work environment. Women currently comprise 48%47% of our full-time team at various levels throughout our organization. We promote and fund professional development opportunities through in-person trainings, online learning resources, and external classes and seminars as requested by our employees, and higher-education tuition reimbursement, if doing so will advance the work-related skills or professional development of our team. Our Business Conduct Guidelines and our Employee Handbook govern our professional conduct and ethics with respect to our people, our partners, our health and safety, and our information technology security.
Response to COVID-19 Pandemic
We took swift and decisive action at the onset of the COVID-19 pandemicIn June 2022, we launched our Getty Gives campaign to provide our employeesteam with a safe workplaceformal program to support causes dear to them and the communities in which we live and work. Getty Gives includes corporate donations to charitable organizations selected by investingour employees, company matching for employee charitable donations, and additional paid time off for employee volunteer opportunities. In 2022, our Getty Gives program led to corporate charitable donations to two charitable organizations selected by our employees, and matching employee charitable donations to many other worthy causes.
In 2022 we also launched our inaugural pro bono legal services program to advance the public interest by serving communities in need and instituting Company-wide work-from-home policies, adopting health screening and hygiene protocols, as well as office de-densification and distancing strategies, and supplying protective equipment and cleaning supplies. During 2021, we continuedat the same time provide opportunities for personal philanthropic fulfillment to navigate the multiple challenges to our business and operations during the COVID-19 pandemic, which included the openingmembers of our New York City officein-house legal team. Getty considers pro bono activity to be an important part of its commitment to philanthropic initiatives and implementation of rigorous in-office COVID-19 protocols, which allowed usis committed to
Corporate Governance and Related Matters(Continued)
remain open throughout 2021 despite operational challenges. We also have implemented a regular schedule of Company-wide meetings continuing efforts to maintain connectivity and boost employee morale and are scheduled to resume full in-person attendance on a regular basis inhelp our corporate headquarters this spring.communities through pro bono legal engagement.
Employee Compensation and Welfare Programs.Programs
We offer our employees a robust benefits package that includes:
| ■ | Competitive base salaries, plus cash and equity incentive compensation opportunities; |
| ■ | Profit sharing and 401(k) plan with partial Company match; |
| ■ | Comprehensive medical, dental and vision insurance with substantially all premiums paid by the Company; |
| ■ | Company-funded healthcare reimbursement accounts and a pre-tax employee-funded flexible spending account; |
| ■ | Company-funded commuter reimbursement accounts and a pre-tax employee-funded commuter benefits program; |
| ■ | Expansive paid time-off benefits and flexible work schedules; and |
| ■ | Programs for paid parental leave and adoption assistance reimbursement. |
Our Practices: Corporate Governance and Ethical Business Practices
We are dedicated to maintaining a high standard for corporate governance predicated on integrity, ethics, diversity and transparency.
Board Independence. In particular, we value the independence of our directors, with approximately 86%83% of our directors (6(5 out of 7)6) qualifying as independent, including the Chairman of our Board and all members of the committees of our Board of Directors.
Board Composition.We are committed to diversity on our Board of Directors, with approximately 29%33% of our directors being female following the appointment of Ms. Infurna to our Board of Directors in July 2021.female. Moreover, the Director Qualification Standards section of the Company’s Corporate Governance Guidelines affirm that diversity (based on factors commonly associated with diversity such as race, gender, national origin, ethnicity, religion, or
| 32 | GETTY REALTY 2023 Proxy Statement |
Corporate Governance and Related Matters(continued)
sexual orientation or identity, as well as on broader principles such as diversity of perspective and experience) is one of the elements to be considered in evaluating a particular director candidate, in addition to other skills and characteristics required of members of the Board of Directors to fulfill their obligations as directors. The Nominating/Corporate Governance Committee will continue to assess the appropriate balance of skills and characteristics required of members of the Board of Directors and, as opportunities arise, will seek to broaden the diversity composition of the Board of Directors. (For additional information regarding the evaluation of our director candidates and their specific experience and qualifications, see “Nominating/Corporate Governance Committee” discussion on pages 23-25page 25 of this Proxy Statement and “Experience and Qualifications Represented on our Board of Directors” section on page 1921 of this Proxy Statement.)
Other Governance PracticesPractices. . Additionally, as discussed in greater detail in the section of this Proxy Statement captioned “Corporate Governance and Related Matters,” we hold annual elections for our entire Board of Directors, do not have a classified board of directors, and have restrictions on over-boarding. We maintain anti-hedging & anti-pledging policies and have not adopted a poison pill.
Stockholder Ability to Amend BylawsBylaws.. In February 2022, following the recommendation of our Nominating/Corporate Governance Committee, our Board of Directors amended Article XIV of the Bylaws, effective upon adoption, to provide that in addition to the power of our Board of Directors to alter, repeal, amend or rescind any provision of the Bylaws and to make new Bylaws, under both our Charter and Bylaws, the Company’s stockholders have the power to alter, repeal, amend or rescind the Bylaws or to make new Bylaws by the affirmative vote of the holders of a majority of the outstanding shares of common stock of the Company entitled to vote on the matter pursuant to a binding proposal timely submitted by a stockholder (or stockholder group) that satisfies the ownership and other eligibility requirements of Rule 14a-8 of the Securities Exchange Act of 1934, as amended, for the periods
Corporate Governance and Related Matters(Continued)
and as of the dates specified in Rule 14a-8. In connection with(For additional information regarding the amendment to the Bylaws,evaluation of our Boarddirector candidates and their specific experience and qualifications, see “Nominating/Corporate Governance Committee” discussion on page 25 of Directors authorized an analogous amendment to our Charter, which has been submitted for approval by our stockholders pursuant to this Proxy Statement. (See “Proposal No. 4—Approval of the Charter Amendment Proposal (Item No. 4 on the Proxy Card))” for additional information.
Opting out of the Maryland Unsolicited Takeover ActAct.. In connection with the amendment to the Bylaws and based on the recommendation of our Nominating/Corporate Governance Committee, on February 23, 2022, our Our Board of Directors adopted a resolution prohibiting the Company from electing to be subject to the provisions of Title 3, Subtitle 8 of the MGCL contained in Section 3-803 of the MGCL (relating to classification of the board), unless such election is first approved by the stockholders of the Company by the affirmative vote of at least a majority of the votes cast on the matter by stockholders entitled to vote generally in the election of directors and filed Articles Supplementary memorializing the resolution with the SDAT. (For additional information regarding the recent corporate governance actions thatevaluation of our Nominating/director candidates and their specific experience and qualifications, see “Nominating/ Corporate Governance Committee and our BoardCommittee” discussion on page 25 of Directors have taken, please refer to “Corporate Governance and Related Matters—Committees—Nominating/ Corporate Governance Committee—Governance Oversight—Stockholder Ability to Amend the Company’s Bylaws; Opt Out of the Maryland Unsolicited Takeover Act.”this Proxy Statement.)
We believe that sound corporate governance strengthens the accountability of our Board of Directors and management and promotes the long-term interest of stockholders. For a more detailed description of our governance policies and procedures, please see the discussions above in this “Corporate Governance and Related Matters” section at page 2022 of this Proxy Statement.
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Security Ownership of Certain Beneficial Owners And Management of Shares
The following table sets forth the beneficial ownership of Getty common stock as of March 3, 20226, 2023 of (i) each person who is a beneficial owner of more than 5% of the outstanding shares of Getty common stock, (ii) each director, (iii) the Named Executive Officers (as defined below), and (iv) all directors and executive officers as a group. The number of shares column includes shares as to which voting power and/or investment power may be acquired within 60 days of March 3, 20226, 2023 (inclusive of vested Restricted Stock Units (“RSUs”) – see footnote 2 below).
| Name and Address of Beneficial Owner(1) | Shares of Common Stock Beneficially Owned | Approximate Percent of Class(2) | ||
| BlackRock, Inc. 55 East 52nd Street New York, NY 10055 | 7,290,489 | (3) | 15.60 | |
| The Vanguard Group 100 Vanguard Boulevard Malvern, PA 19355 | 6,891,298 | (4) | 14.75 | |
| State Street Corporation State Street Financial Center One Lincoln Street Boston, MA 02111 | 2,784,267 | (5) | 5.96 | |
| Kayne Anderson Rudnick Investment Management LLC 2000 Avenue of the Stars; Suite 1110 Los Angeles, CA 90067 | 2,765,813 | (6) | 5.92 | |
| Howard B. Safenowitz, Director Includes shares attributable to: Safenowitz Family Corp. - 2,455,747(7) shares (5.25%) | 2,982,944 | (8) | 6.37 | |
| Milton Cooper, Director c/o Kimco Realty Corporation 500 North Broadway, Ste. 201 Jericho, NY 11753 | 1,396,036 | (9) | 2.98 | |
| Philip E. Coviello, Director | 122,635 | (10) | * | |
| Evelyn León Infurna, Director | 2,100 | (11) | * | |
| Mary Lou Malanoski, Director | 17,000 | (12) | * | |
| Christopher J. Constant, Director, Chief Executive Officer and President | 114,968 | (13) | * | |
| Mark J. Olear, Executive Vice President and Chief Operating Officer | 84,700 | (14) | * | |
| Joshua Dicker, Executive Vice President, General Counsel and Secretary | 88,281 | (15) | * | |
| Brian R. Dickman, Executive Vice President, Chief Financial Officer and Treasurer | 17,160 | (16) | * | |
| Directors and executive officers as a group (10 persons)(17) | 4,855,344 | 10.38 | ||
| Name and Address of Beneficial Owner(1) | Shares of Common Stock Beneficially Owned | Approximate Percent of Class(2) | ||||||
| BlackRock, Inc. 55 East 52nd Street New York, NY 10055 | 7,173,877 | (3) | 15.80 | |||||
| The Vanguard Group, Inc. 100 Vanguard Boulevard Malvern, PA 19355 | 6,188,844 | (4) | 13.65 | |||||
| Howard B. Safenowitz, Director Includes shares attributable to: Safenowitz Family Corp. - 2,455,747(5) shares (5.26%) | 2,983,744 | (6) | 6.38 | |||||
| Milton Cooper, Director c/o Kimco Realty Corporation 500 North Broadway, Ste. 201 Jericho, NY 11753 | 1,389,236 | (7) | 2.97 | |||||
| Philip E. Coviello, Director | 119,835 | (8) | * | |||||
| Evelyn León Infurna, Director | 0 | (9) | * | |||||
| Mary Lou Malanoski, Director | 10,800 | (10) | * | |||||
| Richard E. Montag, Director | 116,708 | (11) | * | |||||
| Christopher J. Constant, Director, Chief Executive Officer and President | 94,646 | (12) | * | |||||
| Mark J. Olear, Executive Vice President and Chief Operating Officer | 65,650 | (13) | * | |||||
| Joshua Dicker, Executive Vice President, General Counsel and Secretary | 81,731 | (14) | * | |||||
| Brian R. Dickman, Executive Vice President, Chief Financial Officer and Treasurer | 6,040 | (15) | * | |||||
| Directors and executive officers as a group (11 persons)(16) | 4,889,190 | 10.47 | ||||||
*Total shares beneficially owned constitute less than one percent of the outstanding shares.
| (1) | Unless otherwise indicated, the address of each of the named individuals is c/o Getty Realty Corp., 292 Madison Avenue, 9th Floor, New York, NY 10017-6376. |
| (2) | The percentage is determined for each stockholder listed by dividing (A) the number of shares shown for such stockholder, by (B) the aggregate number of shares outstanding as of March |
| (3) | The information is derived from a Schedule 13G filed by BlackRock, Inc. on January |
| (4) | The information is derived from a Schedule 13G filed by The Vanguard Group |
| (5) | The information is derived from a Schedule 13G filed by State Street Corporation on February 1, 2023. State Street Corporation has shared power to vote or to direct the vote of 2,192,788 shares and shared power to dispose or to direct the disposition of 2,784,267 shares. |
| (6) | The information is derived from a Schedule 13G filed by Kayne Anderson Rudnick Investment Management LLC on February 14, 2023. Kayne Anderson Rudnick Investment Management LLC has sole power to vote or to direct the vote of 1,564,024 shares; shared power to vote or to direct the vote of 803,811 shares; sole power to dispose or to direct the disposition of 1,962,002 shares and shared power to dispose or to direct the disposition of 803,811 shares. |
| (7) | Includes 1,848,092 shares held by Safenowitz Partners, LP, 517,857 shares held by Safenowitz Family Partnership, LP, and 89,798 shares held by Safenowitz Investment Partners. Safenowitz Family Corp. is the general partner of each of Safenowitz Partners, LP, Safenowitz Family Partnership, LP and Safenowitz Investment Partners. Mr. Safenowitz is the president of Safenowitz Family Corp. |
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Security Ownership of Certain Beneficial Owners And Management of Shares(continued)
| Includes 2,455,747 shares attributable to Safenowitz Family Corp. (see footnote |
| Includes 77,354 shares held by Mr. Cooper’s wife as to which he disclaims beneficial ownership, 134,052 of the shares held by CLS General Partnership Corp., of which Mr. Cooper is a stockholder and 1,096,053 shares beneficially owned by the Milton Cooper 2013 Revocable Trust u/a/d of which Mr. Cooper is the sole trustee. Also includes |
| Includes 25,983 shares held by a charitable remainder trust of which Mr. Coviello is the trustee, |
| Includes |
| Includes |
| Includes |
| Includes |
| Includes |
| Includes |
| Includes |
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Compensation Discussion and Analysis
The Compensation Committee is responsible for setting and administering the compensation policies and practices for the executive officers of the Company. The Company’s executive compensation program consists primarily of the following elements: base salary, cash incentive compensation, equity compensation and retirement plans. We do not utilize compensation policies or practices that create risks which are reasonably likely to have a material adverse effect on the Company.
This “Compensation Discussion and Analysis” section describes generally the compensation policies and practices that the Company applies to our Chief Executive Officer (“CEO”), Christopher J. Constant, Chief Operating Officer and Chief Investment Officer, Mark J. Olear, our General Counsel, Joshua Dicker, and our Chief Financial Officer (“CFO”), Brian R. Dickman (each of the foregoing, a “Named Executive Officer” or “NEO”). For additional details about our NEOs for 2021,2022, see “Executive Officers” at page 2729 of this Proxy Statement and “Summary Compensation Table” at page 3842 of this Proxy Statement.
2022 Company Performance Highlights2021
The following presents a summary of certain financial and operational highlights achieved by the Company in 20212022 which, among other factors, were considered by the Compensation Committee in reaching its determinations regarding the performance and compensation of our NEOs. (See our filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2021,2022, for additional details regarding each of these highlights.)
| ■ |
| ■ | ||
| ■ | ||
| drive-thru bank branch. |
| 1 | ||
| AFFO and FFO are non-GAAP measures. For a description of how Getty calculates AFFO and FFO and for a reconciliation of these non-GAAP measures to the nearest comparable GAAP measure, see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Annual Report on our Form 10-K for the year ended December 31, |
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Executive Compensation(continued)
| ■ |
| ● | Selling 24 properties (generating |
| ● | Concluding 2022 with a net lease portfolio occupancy rate | |
| ● | Reducing the Company’s reported environmental liability by approximately $24.4 million, including by |
| ■ | Capital Activities. The Company was active in the |
| ● |
| ● | ||
Getty’s compensation program for executive officers is designed to effectively manage the Company’s aggregate annual compensation expense while providing executive officers with a total compensation package that is competitive to retain them, encourage and motivate their high performance and promote their accountability. Getty’s compensation policies are also designed to promote increased stockholder value by aligning the financial interests of Getty’s executive officers with those of its stockholders. The Compensation Committee believes that its current policies, plans and programs are adequateappropriate for these purposes.
Getty’s executive compensation program involves a combination of annual cash compensation, discretionary incentive compensation (cash incentive awards and equity incentive awards such as RSUs with dividend equivalents), retirement and other plans, and perquisites and other benefits. Although the Compensation Committee has not adopted any formal policies for allocating compensation among the foregoing compensation components, in conducting its review and rendering its determinations, the Compensation Committee evaluates whether each NEO is provided with a total compensation opportunity that achieves the key objectives of the compensation program while maintaining an appropriate cost and risk management structure.
Base salary levels for NEOs are, in combination with other compensation components, considered by the Compensation Committee to be sufficient to achieve the objectives of Getty’s compensation program. Total compensation, including discretionary annual cash incentive awards and RSU grants (including dividend equivalents paid with respect to such RSUs), are in aggregate amounts which the Compensation Committee considers sufficient to retain the NEOs and to align their interests with those of Getty’s stockholders.
In making executive compensation determinations, the Compensation Committee has also considered the results of the non- binding,non-binding, advisory stockholder votes on the Company’s executive compensation program. Our stockholders have approved the Company’s executive compensation program each year since the advisory vote was first sought, most recently approving it by 95%93% of votes cast on the say-on-pay proposal in our 20212022 Proxy Statement. The Compensation Committee was mindful of our stockholders’ endorsement of the Compensation Committee’s decisions and policies and has maintained its general approach to executive compensation for decisions made to date. The Compensation Committee will continue to consider the results from this year’s and future advisory stockholder votes regarding the executive compensation program.
Total compensation determinations by the Compensation Committee for each NEO are influenced in part by the particular responsibilities of the applicable executive position with additional consideration given to such NEO’s individual performance. Our CEO reviews the performance of each NEO (other than himself) and provides compensation recommendations for all NEOs (including himself) to the Compensation Committee with respect to base salary amounts, cash bonuses and grants of equity- basedequity-based awards under the 2004 Plan, consisting of RSUs (including dividend equivalents with respect to such RSUs).
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Executive Compensation(continued)
The Compensation Committee reviews and deliberates upon the CEO recommendations, evaluates the CEO’s and each of the NEO’s individual performances, and establishes the compensation for each NEO. The CEO does not play any role in the Compensation Committee’s deliberation of matters impacting his own compensation. Although the Compensation Committee takes the CEO’s recommendations under advisement, it independently evaluates the compensation recommendations for each NEO and in all instances exercises its discretion in making final compensation decisions in accordance with its authority and formal responsibilities set forth in its Charter.the Charter of the Compensation Committee. The Compensation Committee has direct knowledge of the performance of each of the NEOs through regular and special reports by these executives to the Board of Directors and Board Committees and through other interactions with these executives related to the Company’s operations and performance. In reaching the executive compensation decisions described below, the Compensation Committee recognized the individual contributions that each of Messrs. Constant, Olear, Dicker, and Dickman made towards the Company’s operational and financial achievements highlighted above, while also recognizing each of their individual efforts, including the following notable accomplishments for each NEO):
NEO:
| NEO | 2022 Individual Performance Highlights | ||
Mr. Christopher J. Constant President and Chief Executive Officer | ■ | Successfully | |
| ■ | Achieved increased value | ||
| ■ | Delivered on increased | ||
| ■ | Maintained the Company’s investment grade rating of BBB-IG | ||
| ■ | Successfully expanded the Company’s investor outreach which further promoted the Company’s vision and performance; and | ||
| Bolstered the Company’s talent pool by | |||
Mr. Mark J. Olear Executive Vice President, Chief Investment Officer and Chief Operating Officer | Led sourcing, review and underwriting of | ||
| ■ | Led the investment in 2022 of $157.5 million across 52 properties, which further diversified the Company’s properties by asset class and geographic reach; | ||
| Led the Company’s redevelopment program, | |||
| ■ | Successfully managed the Company’s disposition program by selling 24 properties and generating proceeds of approximately $26 million; | ||
| ■ | Oversaw a significant reduction in the Company’s | ||
| ■ | Effectively managed the Company’s assets, including | ||
| 38 | |
| |
Executive Compensation(continued)
| NEO | 2022 Individual Performance Highlights | ||
Mr. Joshua Dicker Executive Vice President, | Led the Company’s legal compliance and regulatory affairs | ||
| ■ | |||
| ■ | Effectively managed the Company’s litigation portfolio and legal budgets, including the establishment of legal reserves and | ||
| ■ | Provided effective corporate governance oversight and advice to the Company’s Board of Directors and Committees, including leading SEC and NYSE compliance and disclosure management, corporate secretary functions, and successfully evaluating and implementing new governance policies | ||
| ■ | Enhanced the Company’s insurance and risk management programs, including by achieving significant cost reductions while maintaining Company risk parameters; and | ||
| ■ | |||
| Provided oversight of tenant lease compliance | |||
Brian R. Dickman Executive Vice President, CFO and Treasurer | |||
| ■ | |||
| ■ | Raised more than $117 million of common equity by utilizing forward agreements under the Company’s ATM Program in order to match-fund investment activity; | ||
| Maintained the Company’s investment grade rating and strong credit profile, including leverage consistently within the Company’s target range, ample liquidity and sustained capacity under the Company’s revolving credit facility; | |||
| ■ | Led the Company’s initial ESG disclosure efforts, including publication of the Company’s inaugural Corporate Responsibility Report in June 2022; | ||
| Organized and participated in non-deal roadshows and investor conferences, and successfully converted multiple new investors; and | |||
| ■ | Provided leadership and active management across the Company’s accounting, finance, and information technology functions to drive process improvements and other enhancements to | ||
The compensation of the CEO is discussed, deliberated upon and approved solely by the Compensation Committee.
The Compensation Committee may periodically engage outside professional firms to assist in understanding compensation levels and programs in the broader marketplace and to provide advice on executive compensation. In 2021,2022, the Compensation Committee did not engage the services of a compensation consultant and did not benchmark compensation elements against a peer group.
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Executive Compensation(continued)
The primary elements of compensation for our NEOs are the following:
| ■ | Base salary; |
| ■ | ||
| Incentive compensation (discretionary annual cash incentive awards and equity incentive awards like RSUs with dividend equivalents); |
| ■ | ||
| Retirement and other plans; and |
| ■ | ||
| Perquisites and other benefits. |
Executive Compensation (continued)
The Compensation Committee examines whether each NEO’s base salary is competitive and appropriate in view of such person’s role, level of responsibility, experience and value to the Company, and relative to achieving the overall goals of the compensation program for all NEOs. The Compensation Committee reviews base salaries annually and in the interim if an executive officer’s position or responsibilities change or if the Compensation Committee believes it is otherwise necessary or appropriate to do so. Salaries are not automatically increased on an annual basis if the Compensation Committee believes that a raise is not warranted by either individual or Company performance, or that other forms of compensation are more appropriate to advance compensation program objectives.
Increases made to 20212022 base salary are reflected in the Summary Compensation Table below. With respect to 20222023 base salary, as part of the Compensation Committee’s process and in order to achieve the overall goals of Getty’s executive compensation program, the Compensation Committee determined to increase base salaries in 20222023 from those in effect in 20212022 by the following amounts for the following NEOs: Mr. Constant’s base salary for 20222023 was increased by 2.3%6.7%, and base salaries for 20222023 for each of Messrs. Olear, Dicker and Dickman were increased by 2.2%4.3%, 2.4%4.7% and 2.4%4.7% respectively.
Cash Bonus
The Compensation Committee believes that discretionary cash bonuses are useful on a case by casecase-by-case basis to motivate and reward executives for their contribution to annual operating results and Company achievements that help create value for our stockholders. Cash bonuses for NEOs are not guaranteed but have been awarded at the discretion of the Compensation Committee. In deciding whether to award discretionary cash bonuses, the Compensation Committee makes its determinations as described above, based upon (i) recommendations from the Company’s CEO, (ii) its review with the CEO of the performance of each NEO (other than the CEO himself), (iii) its evaluation of the CEO’s individual performance, (iv) its informed judgment, in view of the Company’s financial and operational performance, of each NEO’s responsibilities and efforts, such NEO’s contribution to the Company’s overall performance and success, and the complexity or difficulty of the objectives that have been achieved by such NEO, (v) the relative significance of a cash bonus award toward meeting the overall goals of Getty’s compensation program, and (vi) other relevant considerations. These factors are considered subjectively and no one factor is accorded any specific weight. In February 2022,2023, the Compensation Committee approved discretionary cash bonuses. Specifically, Mr. Constant was paid a cash bonus of $450,000,$485,000, Messrs. Olear Dicker and DickmanDicker were each paid a cash bonus of $300,000.$310,000, and Mr. Dickman was paid a cash bonus of $320,000.
Equity Incentive Awards
The Company maintains the stockholder-approved 2004 Plan for officers and other valued employees of the Company and its subsidiaries, and members of the Board of Directors. The 2004 Plan allows for the grant of various types of stock-based awards, other than stock options, to eligible individuals. The 2004 Plan is administered by the Compensation Committee, which has the power to determine eligibility, the types and sizes of awards, the price and timing of awards, terms of vesting, the acceleration or waiver of any vesting restriction and the timing and manner of settling vested awards.
Generally, to better align the interests of the Company’s NEOs with the interests of the Company’s stockholders and to promote performance that will have a positive long-term impact on total stockholder return, the Compensation Committee annually grants equity-based awards under the 2004 Plan to the Company’s NEOs, consisting of time-based RSUs (including dividend equivalents paid with respect to such RSUs). These RSU awards vest ratably over a five-year period commencing on the first anniversary of the grant date subject to continued employment through each vesting date and, for all such RSU
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Executive Compensation(continued)
awards granted from and after 2009, are settled, in the discretion of the Compensation Committee, in cash or in shares of the Company’s common stock upon the earlier of ten years after the grant date (or the first vesting date for RSU awards granted in 2016 2017 and- 2018) or termination of employment. Settlement of vested RSUs granted prior to 2009 is deferred until termination of service pursuant to the award agreements in effect prior to 2009. All award agreements also provide for vesting of unvested RSUs in the discretion of, and subject to approval by, the Compensation Committee, in the event of the “Retirement” (as defined in the award agreement) of the executive officer.
The Compensation Committee’s determination in February 20222023 to grant RSUs under the annual equity grant program to Messrs. Constant, Olear, Dicker and Dickman was in keeping with its annual practice of using RSUs as an important part of the total executive compensation program and was based on the Compensation Committee’s determination that an annual grant of RSUs fosters theis equivalent ofto stock ownership by the Company’s executive officers,officers. The Compensation Committee views the durations of the five-year vesting schedule and the 10-year settlement schedule, together with the significant relative percentage of equity incentive awards as compared to the total compensation mix for each NEO (in 2022, RSU grants awarded to each NEO represented more than half of such NEO’s respective overall compensation), as ownership touchpoints to the Company’s long-term performance thereby aligning theireach NEO’s personal interests with the
Executive Compensation (continued)
long-term interests of the Company’s stockholders, andstockholders. The Compensation Committee also believes the annual equity award program encourages executive retention because the awards vest over a five-year period. The size of the annual equity award granted to each NEO is commensurate withlength of the rolevesting and responsibilities of such NEO and with historical trends.settlement terms.
In February 2022,2023, the Compensation Committee approved RSU grants to the NEOs in accordance with its annual equity grant program based on each NEO’s role and responsibilities, and such NEO’s individual performance during 20212022, and in furtherance of the overall goals of Getty’s executive compensation program as described above, in the following amounts: 40,00047,500 RSUs to Mr. Constant, 25,500and 28,000 RSUs to Mr.each of Messrs. Olear, 25,500 RSUs to Mr. Dicker and 25,500 RSUs to Mr. Dickman. RSU grants to NEOs are reflected in the “2021“2022 Grants of Plan- Based Awards” table below. All such RSU grants include related dividend equivalents.
Getty sponsors a retirement and profit sharing plan with 401(k) deferred savings plan provisions (the “Retirement Plan”) for employees, including our NEOs, meeting certain service requirements. An annual discretionary profit-sharing contribution to the Retirement Plan is determined by the Board of Directors. The contribution is calculated as a percentage of the sum of (i) the employee’s compensation (as defined in the Retirement Plan) up to the maximum allowed under Internal Revenue Service regulations, and (ii) the excess of that amount over the social security taxable wage base. For 2021,2022, the Board of Directors elected to contribute 1% of that sum for each eligible employee. This percentage wasis consistent with prior years. Under the terms of the Retirement Plan, the Company matches 50% of each participating employee’s elective contribution to the Retirement Plan, but in no event more than 3% of the employee’s compensation. The Company’s contributions to the Retirement Plan vest in accordance with a six-year vesting schedule and are paid upon retirement, death, disability, or termination of employment, as described more fully in the Retirement Plan.
Getty also hassponsors the Supplemental Retirement Plan for NEOs and other senior management employees. The Board of Directors has sole discretion to select annually the eligible employees for whom contributions will be made. Under the Supplemental Retirement Plan, which is not qualified for purposes of Section 401(a) of the Internal Revenue Code, a participating employee may receive in his trust account an amount equal to 10% of his compensation (as defined in the Supplemental Retirement Plan), reduced by the amount of any contributions allocated to such employee by the Company under the Retirement Plan. The amounts held in trust under the Supplemental Retirement Plan may be used to satisfy claims of general creditors in the event of bankruptcy of Getty or any of its subsidiaries. An employee’s account vests in the same manner as under the Retirement Plan and is paid upon separation of service from the Company. Under the Supplemental Retirement Plan, during any year, the Board of Directors may elect not to make any payment to the account of any or all eligible employees.
Anti-Hedging and Anti-Pledging Policy
In February 2019, the Company implemented an Anti-Hedging and Anti-Pledging Policy (the “Policy”) that prohibits employees (including our executive officers) and directors from (i) engaging in any short sales (including short sales “against the box”), transactions in puts, calls or other derivative securities involving the Company’s securities, on an exchange or in any other organized market, or hedging transactions and (ii) holding Company securities in a margin account or pledging Company securities as collateral for a loan. All employees and directors are in full compliance with the Policy.
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Executive Compensation(continued)
Clawback Policy
In November 2022, the SEC issued final rulemaking that directed the listing exchanges, including the NYSE, to adopt rules requiring listed companies to implement a clawback policy that requires recovery of incentive compensation erroneously paid during the three completed fiscal years immediately preceding the date on which a listed company is required to prepare an accounting restatement to correct an error that is material to the listed company’s previously issued financial statements. In 2023, the Company intends to adopt a clawback policy when such NYSE rulemaking regarding recoupment policies becomes effective.
Compensation Committee Report
The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis with management as required by Item 402(b) of Regulation S-K, and based on such review and discussions, the Compensation Committee recommended to the Board of Directors that the Compensation Discussion and Analysis be included in this Proxy Statement for filing with the SEC and incorporated by reference into the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.2022.
Compensation Committee:
Milton Cooper (Chairman)
Philip E. Coviello
Evelyn León Infurna
Richard E. Montag
Executive Compensation (continued)
The following table sets forth information about the compensation of the CEO and each of the other Named Executive Officers for services in all capacities to Getty and its subsidiaries during the periods indicated.
| Name and act Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards(1) ($) | Option Awards ($) | Non Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All Other Compensation(2) | Total Compensation | ||||||||||
| Christopher J. Constant | 2021 | 543,077 | 450,000 | 854,700 | 0 | 0 | 0 | 70,072 | 1,917,849 | ||||||||||
| President and Chief Executive Officer | 2020 | 522,692 | 400,000 | 724,500 | 0 | 0 | 0 | 67,572 | 1,714,764 | ||||||||||
| 2019 | 511,538 | 355,000 | 746,775 | 0 | 0 | 0 | 66,572 | 1,679,885 | |||||||||||
| Mark J. Olear | 2021 | 445,846 | 300,000 | 619,658 | 0 | 0 | 0 | 55,872 | 1,421,376 | ||||||||||
| Executive Vice President, | 2020 | 433,269 | 270,000 | 533,232 | 0 | 0 | 0 | 54,372 | 1,290,873 | ||||||||||
| Chief Investment Officer and Chief Operating Officer | 2019 | 424,615 | 245,000 | 547,635 | 0 | 0 | 0 | 53,622 | 1,270,872 | ||||||||||
| Joshua Dicker | 2021 | 408,077 | 300,000 | 619,658 | 0 | 0 | 0 | 52,372 | 1,380,107 | ||||||||||
| Executive Vice President, | 2020 | 388,269 | 270,000 | 533,232 | 0 | 0 | 0 | 49,872 | 1,241,373 | ||||||||||
| General Counsel and Secretary | 2019 | 379,615 | 245,000 | 547,635 | 0 | 0 | 0 | 49,122 | 1,221,372 | ||||||||||
| Brian R. Dickman | 2021 | 415,000 | 300,000 | 427,350 | 0 | 0 | 0 | 51,592 | 1,193,942 | ||||||||||
| Executive Vice President, | 2020 | 9,577 | 250,000 | 432,450 | 0 | 0 | 0 | 2,104 | 694,131 | ||||||||||
| Chief Financial Officer and Treasurer |
| Name and act Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards(1) ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All Other Compensation(2) | Total Compensation | |||||||||
Christopher J. Constant President and Chief Executive Officer | 2022 | 559,135 | 485,000 | 1,095,200 | 0 | 0 | 0 | 71,322 | 2,210,657 | |||||||||
| 2021 | 543,077 | 450,000 | 854,700 | 0 | 0 | 0 | 70,072 | 1,917,849 | ||||||||||
| 2020 | 522,692 | 400,000 | 724,500 | 0 | 0 | 0 | 67,572 | 1,714,764 | ||||||||||
Mark J. Olear Executive Vice President, Chief Investment Officer and Chief Operating Officer | 2022 | 457,308 | 310,000 | 698,190 | 0 | 0 | 0 | 56,872 | 1,522,370 | |||||||||
| 2021 | 445,846 | 300,000 | 619,658 | 0 | 0 | 0 | 55,872 | 1,421,376 | ||||||||||
| 2020 | 433,269 | 270,000 | 533,232 | 0 | 0 | 0 | 54,372 | 1,290,873 | ||||||||||
Joshua Dicker Executive Vice President, General Counsel and Secretary | 2022 | 422,308 | 310,000 | 698,190 | 0 | 0 | 0 | 53,372 | 1,483,870 | |||||||||
| 2021 | 408,077 | 300,000 | 619,658 | 0 | 0 | 0 | 52,372 | 1,380,107 | ||||||||||
| 2020 | 388,269 | 270,000 | 533,232 | 0 | 0 | 0 | 49,872 | 1,241,373 | ||||||||||
Brian R. Dickman(3) Executive Vice President Chief Financial Officer and Treasurer | 2022 | 422,308 | 320,000 | 698,190 | 0 | 0 | 0 | 52,592 | 1,493,090 | |||||||||
| 2021 | 415,000 | 300,000 | 427,350 | 0 | 0 | 0 | 51,592 | 1,193,942 | ||||||||||
| 2020 | 9,577 | 250,000 | 432,450 | 0 | 0 | 0 | 2,104 | 694,131 |
| (1) | Stock awards are in the form of restricted stock units (RSUs). The amount reflected is the grant date fair value computed in accordance with FASB ASC Topic 718. The value of future dividends is assumed to be reflected in the closing per share price of the common stock, and, consequently, in the fair value of each award. Therefore, the dividend equivalents paid on RSUs are not shown separately in this table. The Company pays dividend equivalents on RSUs only to the extent dividends are declared on shares of its common stock. |
| (2) | All Other Compensation includes (a) profit sharing and Company matching contributions under the Retirement Plan, (b) contributions under the Supplemental Retirement Plan, (c) life insurance premiums, and (d) perquisites and other personal benefits received by the NEOs that exceeded $10,000 in the aggregate for the year, which consist only of automobile allowances. See “All Other Compensation” table, below. |
| (3) | Mr. Dickman was appointed Chief Financial Officer effective December 14, 2020. |
| 42 | GETTY REALTY 2023 Proxy Statement |
Executive Compensation(continued)
The following table sets forth information about amounts included in the All Other Compensation column of the Summary Compensation Table.
| Name | Year | Profit Sharing Contribution ($) | Company Match Under 401(k) Provisions ($) | Supplemental Retirement Plan ($) | Life Insurance(1) ($) | Perquisites and Other Personal Benefits(2) ($) | Total All Other Compensation ($) | ||||||||
| Christopher J. Constant | 2021 | 4,372 | 8,700 | 41,928 | 1,872 | 13,200 | 70,072 | ||||||||
| 2020 | 4,323 | 8,550 | 39,627 | 1,872 | 13,200 | 67,572 | |||||||||
| 2019 | 4,271 | 8,400 | 38,829 | 1,872 | 13,200 | 66,572 | |||||||||
| Mark J. Olear | 2021 | 4,372 | 8,700 | 31,928 | 1,872 | 9.000 | 55,872 | ||||||||
| 2020 | 4,323 | 8,550 | 30,627 | 1,872 | 9,000 | 54,372 | |||||||||
| 2019 | 4,271 | 8,400 | 30,079 | 1,872 | 9,000 | 53,622 | |||||||||
| Joshua Dicker | 2021 | 4,372 | 8,700 | 28,428 | 1,872 | 9,000 | 52,372 | ||||||||
| 2020 | 4,323 | 8,550 | 26,127 | 1,872 | 9,000 | 49,872 | |||||||||
| 2019 | 4,271 | 8,400 | 25,579 | 1,872 | 9,000 | 49,122 | |||||||||
| Brian R. Dickman | 2021 | 4,372 | 8,700 | 28,428 | 1,092 | 9,000 | 51,592 | ||||||||
| 2020 | 102 | 0 | 1,627 | 0 | 375 | 2,104 |
| Name | Year | Profit Sharing Contribution ($) | Company Match Under 401(k) Provisions | Supplemental Retirement Plan ($) | Life Insurance(1) ($) | Perquisites and Other Personal Benefits(2) ($) | Total All Other Compensation ($) | |||||||
| Christopher J. Constant | 2022 | 4,630 | 9,150 | 42,470 | 1,872 | 13,200 | 71,322 | |||||||
| 2021 | 4,372 | 8,700 | 41,928 | 1,872 | 13,200 | 70,072 | ||||||||
| 2020 | 4,323 | 8,550 | 39,627 | 1,872 | 13,200 | 67,572 | ||||||||
| Mark J. Olear | 2022 | 4,630 | 9,150 | 32,220 | 1,872 | 9,000 | 56,872 | |||||||
| 2021 | 4,372 | 8,700 | 31,928 | 1,872 | 9,000 | 55,872 | ||||||||
| 2020 | 4,323 | 8,550 | 30,627 | 1,872 | 9,000 | 54,372 | ||||||||
| Joshua Dicker | 2022 | 4,630 | 9,150 | 28,720 | 1,872 | 9,000 | 53,372 | |||||||
| 2021 | 4,372 | 8,700 | 28,428 | 1,872 | 9,000 | 52,372 | ||||||||
| 2020 | 4,323 | 8,550 | 26,127 | 1,872 | 9,000 | 49,872 | ||||||||
| Brian R. Dickman | 2022 | 4,630 | 9,150 | 28,720 | 1,092 | 9,000 | 52,592 | |||||||
| 2021 | 4,372 | 8,700 | 28,428 | 1,092 | 9,000 | 51,592 | ||||||||
| 2020 | 102 | 0 | 1,627 | 0 | 375 | 2,104 |
| (1) | All life insurance policy premiums relate to term life insurance policies. |
| (2) | Perquisites and Other Personal Benefits consist only of an automobile allowance. |
2021 Compensation Disclosure Ratio of the Median Annual Total Compensation of All Company Employees to the Annual Total Compensation of the Company’s Chief Executive Officer
Mr. Christopher J. Constant, who serves as the Company’s President and Chief Executive Officer, had fiscal 2021 total compensation of $1,917,849, as reflected in the Summary Compensation Table included in this Proxy Statement. We estimate that the annual compensation for the median employee of the Company, excluding our Chief Executive Officer, was $229,236 for 2021. As a result, Mr. Constant’s 2021 annual compensation was approximately eight times that of the median annual compensation for all employees.
Executive Compensation (continued)
To identify the median of the annual total compensation of all our employees, as well as to determine the annual total compensation of the “median employee,” the methodology and the material assumptions, adjustments, and estimates that we used were as follows:
2021 Grants of Plan Based Awards
| All Other Stock Awards: | All Other Option Awards: | Grant Date Fair | |||||||||||||||||||
| Estimated Future Payouts Under Non Equity Incentive Plan Awards | Estimated Future Payouts Under Equity Incentive Plan Awards | Number of Shares of Stock or Units (#)(1) | Number of Securities Underlying Options (#) | Value of Stock and Option Awards ($)(2) | |||||||||||||||||
| Name | Grant Date | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | ||||||||||||||
| Christopher J. Constant | 3/1/21 | 0 | 0 | 0 | 0 | 0 | 0 | 30,000 | 0 | $854,700 | |||||||||||
| Mark J. Olear | 3/1/21 | 0 | 0 | 0 | 0 | 0 | 0 | 21,750 | 0 | 619,658 | |||||||||||
| Joshua Dicker | 3/1/21 | 0 | 0 | 0 | 0 | 0 | 0 | 21,750 | 0 | 619,658 | |||||||||||
| Brian R. Dickman | 3/1/21 | 15,000 | 0 | 427,350 | |||||||||||||||||
| All Other Stock Awards: Number of Shares of Stock or Units (#)(1) | All Other Option Awards: Number of Securities Underlying Options (#) | Grant Date Fair Value of Stock and Option Awards ($)(2) | ||||||||||||||||||
| Estimated Future Payouts Under Non Equity Incentive Plan Awards | Estimated Future Payouts Under Equity Incentive Plan Awards | |||||||||||||||||||
| Name | Grant Date | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | |||||||||||||
| Christopher J. Constant | 3/1/22 | 0 | 0 | 0 | 0 | 0 | 0 | 40,000 | 0 | 1,095,200 | ||||||||||
| Mark J. Olear | 3/1/22 | 0 | 0 | 0 | 0 | 0 | 0 | 25,500 | 0 | 698,190 | ||||||||||
| Joshua Dicker | 3/1/22 | 0 | 0 | 0 | 0 | 0 | 0 | 25,500 | 0 | 698,190 | ||||||||||
| Brian R. Dickman | 3/1/22 | 0 | 0 | 0 | 0 | 0 | 0 | 25,500 | 0 | 698,190 | ||||||||||
| (1) | Stock awards are in the form of RSUs that vest ratably over a five-year period commencing on the first anniversary of the grant date, with accelerated vesting in the event of death or termination of service by the Company without cause. |
| (2) | Grant date fair value is computed in accordance with FASB ASC Topic 718. |
| GETTY REALTY 2023 Proxy Statement | 43 |
Executive Compensation(continued)
2022 Outstanding Equity Awards at Year-End2021
The following table provides information as to outstanding Stock Options and RSUs held by each of the NEOs atas of December 31, 2021.2022. In accordance with the rules promulgated by the SEC, certain columns relating to information that is not applicable have been omitted from this table.
| Option Awards(1) | Stock Awards | ||||||||||||||||||||
| Name | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | Option Exercise Price ($) | Option Expiration Date | Grant Date | Number of Shares or Units of Stock That Have Not Vested(2) (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) | |||||||||||
| Christopher J Constant | 3/1/21 | 30,000 | 962,700 | ||||||||||||||||||
| 3/2/20 | 20,000 | 641,800 | |||||||||||||||||||
| 3/1/19 | 13,500 | 433,215 | |||||||||||||||||||
| 3/1/18 | 7,000 | 224,630 | |||||||||||||||||||
| 3/1/17 | 3,000 | 96,270 | |||||||||||||||||||
| Mark J. Olear | 3/1/21 | 21,750 | 697,958 | ||||||||||||||||||
| 3/2/20 | 14,720 | 472,365 | |||||||||||||||||||
| 3/1/19 | 9,900 | 317,691 | |||||||||||||||||||
| 3/1/18 | 5,200 | 166,868 | |||||||||||||||||||
| 3/1/17 | 2,200 | 70,598 | |||||||||||||||||||
| Joshua Dicker | 3/1/21 | 21,750 | 697,958 | ||||||||||||||||||
| 3/2/20 | 14,720 | 472,365 | |||||||||||||||||||
| 3/1/19 | 9,900 | 317,691 | |||||||||||||||||||
| 3/1/18 | 5,200 | 166,868 | |||||||||||||||||||
| 3/1/17 | 2,200 | 70,598 | |||||||||||||||||||
| Brian R. Dickman | 3/1/21 | 15,000 | 481,350 | ||||||||||||||||||
| 12/14/20 | 12,000 | 385,080 | |||||||||||||||||||
| Stock Awards | ||||||||||
| Name | Grant Date | Number of Shares or Units of Stock That Have Not Vested(1) (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) | |||||
| Christopher J. Constant | 3/1/22 | 40,000 | 1,354,000 | |||||||
| 3/1/21 | 24,000 | 812,400 | ||||||||
| 3/2/20 | 15,000 | 507,750 | ||||||||
| 3/1/19 | 9,000 | 304,650 | ||||||||
| 3/1/18 | 3,500 | 118,475 | ||||||||
| Mark J. Olear | 3/1/22 | 25,500 | 863,175 | |||||||
| 3/1/21 | 17,400 | 588,990 | ||||||||
| 3/2/20 | 11,040 | 373,704 | ||||||||
| 3/1/19 | 6,600 | 223,410 | ||||||||
| 3/1/18 | 2,600 | 88,010 | ||||||||
| Joshua Dicker | 3/1/22 | 25,500 | 863,175 | |||||||
| 3/1/21 | 17,400 | 588,990 | ||||||||
| 3/2/20 | 11,040 | 373,704 | ||||||||
| 3/1/19 | 6,600 | 223,410 | ||||||||
| 3/1/18 | 2,600 | 88,010 | ||||||||
| Brian R. Dickman | 3/1/22 | 25,500 | 863,175 | |||||||
| 3/1/21 | 12,000 | 406,200 | ||||||||
| 12/14/20 | 9,000 | 304,650 | ||||||||
| (1) | ||
| Stock awards are in the form of RSUs that vest ratably over a five-year period commencing on the first anniversary of the grant date, with accelerated vesting in the event of death or termination of employment by the Company without cause. |
| 44 | GETTY REALTY 2023 Proxy Statement |
Executive Compensation(continued)
2022 Option Exercises and Stock Vested2021
The following Option Exercises and Stock Vested table provides additional information about the stock awards that vested during the year ended December 31, 2021.2022. In accordance with the rules promulgated by the SEC, certain columns relating to information that is not applicable have been omitted from this table.
| Name | Option Awards(1) | Stock Awards | ||||||
Number of Shares (#) | Value Realized ($) | Number of Shares (#)(2) | Value Realized ($)(3) | |||||
| Christopher J. Constant | N/A | N/A | 19,000 | 541,310 | ||||
| Mark J. Olear | N/A | N/A | 13,780 | 392,592 | ||||
| Joshua Dicker | N/A | N/A | 13,780 | 392,592 | ||||
| Brian R. Dickman | N/A | N/A | 3,000 | 94,290 | ||||
| Stock Awards | |||
| Name | Number of Shares Acquired on Vesting (#)(1) | Value Realized on Vesting ($)(2) | |
| Christopher J. Constant | 22,000 | 602,360 | |
| Mark J. Olear | 16,130 | 441,639 | |
| Joshua Dicker | 16,130 | 441,639 | |
| Brian R. Dickman | 6,000 | 184,890 | |
| (1) | ||
| Reflects the number of RSUs that vested during |
| Reflects an amount equal to the number of RSUs that vested in |
Nonqualified Deferred Compensation
| Name | Executive Contributions in Last FY ($) | Registrant Contributions in Last FY(1) ($) | Aggregate Earnings (Loss) in Last FY(2) ($) | Aggregate Withdrawals/ Distributions ($) | Aggregate Balance at Last FYE(3) ($) | ||||||
| Christopher J. Constant | |||||||||||
| Supplemental Retirement Plan | 0 | 39,627 | 61,391 | 0 | 399,764 | ||||||
| Vested RSUs | 0 | 541,310 | 292,248 | 0 | 2,382,683 | ||||||
| Total | 0 | 580,937 | 353,639 | 0 | 2,782,447 | ||||||
| Mark J. Olear | |||||||||||
| Supplemental Retirement Plan | 0 | 30,627 | 60,144 | 0 | 312,233 | ||||||
| Vested RSUs | 0 | 392,592 | 211,588 | 0 | 1,584,604 | ||||||
| Total | 0 | 423,219 | 271,732 | 0 | 1,896,837 | ||||||
| Joshua Dicker | |||||||||||
| Supplemental Retirement Plan | 0 | 26,127 | 31,826 | 0 | 408,522 | ||||||
| Vested RSUs | 0 | 392,592 | 196,978 | 0 | 2,258,494 | ||||||
| Total | 0 | 418,719 | 228,804 | 0 | 2,667,016 | ||||||
| Brian R. Dickman | |||||||||||
| Supplemental Retirement Plan | 0 | 1,627 | 0 | 0 | 1,628 | ||||||
| Vested RSUs | 0 | 94,290 | 1,980 | 0 | 96,270 | ||||||
| Total | 0 | 95,917 | 1,980 | 0 | 97,898 |
| Name | Executive Contributions in Last FY ($) | Registrant Contributions in Last FY(1) ($) | Aggregate Earnings (Loss) in Last FY(2) ($) | Aggregate Withdrawals/ Distributions ($) | Aggregate Balance at Last FYE(3) ($) | ||||||
| Christopher J. Constant | |||||||||||
| Supplemental Retirement Plan | 0 | 41,928 | (58,776) | 0 | 382,916 | ||||||
| Vested RSUs | 0 | 602,360 | 188,395 | 0 | 3,173,438 | ||||||
| Total | 0 | 644,288 | 129,618 | 0 | 3,556,353 | ||||||
| Mark J. Olear | |||||||||||
| Supplemental Retirement Plan | 0 | 31,928 | (13,885) | 0 | 330,276 | ||||||
| Vested RSUs | 0 | 441,639 | 191,270 | 0 | 2,217,514 | ||||||
| Total | 0 | 473,567 | 177,385 | 0 | 2,547,790 | ||||||
| Joshua Dicker | |||||||||||
| Supplemental Retirement Plan | 0 | 28,428 | (38,046) | 0 | 398,904 | ||||||
| Vested RSUs | 0 | 441,639 | 58,980 | 0 | 2,759,114 | ||||||
| Total | 0 | 470,067 | 20,934 | 0 | 3,158,017 | ||||||
| Brian R. Dickman | |||||||||||
| Supplemental Retirement Plan | 0 | 28,428 | (1,865) | 0 | 28,191 | ||||||
| Vested RSUs | 0 | 184,890 | 23,490 | 0 | 304,650 | ||||||
| Total | 0 | 213,318 | 21,625 | 0 | 332,841 |
| (1) | The amount reported for each executive in the column “Registrant Contributions in Last FY” for the Supplemental Retirement Plan represents the respective amount reported for each executive for the prior year, |
| (2) | For RSUs, the aggregate earnings (loss) reflect the change in value of the shares of Getty common stock subject to the RSUs calculated based on the change in the closing price from December 31, |
| (3) | The Aggregate Balance includes the balances accumulated under the Supplemental Retirement Plan and the aggregate value of all vested RSUs for which settlement has been deferred based on |
| GETTY REALTY 2023 Proxy Statement | 45 |
Executive Compensation(continued)
Getty maintains the Supplemental Retirement Plan for NEOs and other senior management employees. The Board of Directors has sole discretion to select annually the eligible employees for whom contributions will be made. Under the Supplemental Retirement Plan, which is not qualified for purposes of Section 401(a) of the Internal Revenue Code, a participating employee may receive in his or her trust account an amount equal to 10% of such employee’s compensation (as defined in the Supplemental Retirement Plan), reduced by the amount of any contributions allocated to the employee by the Company under the Retirement Plan. Amounts contributed by the Company for 20212022 to the Supplemental Retirement Plan for our NEOs were calculated based upon the definition of eligible compensation in the Supplemental Retirement Plan which excludes everything other than base salary as the basis for computation of eligible compensation. The amounts held in trust under the Supplemental Retirement Plan may be used to satisfy claims of general creditors in the event of Getty’s or any of its subsidiaries’ bankruptcy. An employee’s account vests in the same manner as under the Retirement Plan and is paid upon separation of service from the Company. Under the Supplemental Retirement Plan, during any year the Board of Directors may elect not to make any payment to the account of any or all eligible employees.
Potential Payments upon Termination or Change in Control
Each of the award agreements for outstanding RSUs granted to our employees, including our NEOs, contains a provision that causes the unvested RSUs to vest upon the NEO’s death or termination of the NEO’s employment without cause. The award agreements also provide for optional vesting of unvested RSUs in the event of the “Retirement” (as defined in the award agreement) of the subject employee, including our NEOs, if approved by the Compensation Committee in its discretion. In the event of a termination of employment without cause, the value as of December 31, 20212022 of RSUs that would vest upon such termination would be as follows: Mr. Constant – $2,358,615;$3,097,275; Mr. Olear – $1,725,479;$2,137,289; Mr. Dicker – $1,725,479;$2,137,289; and Mr. Dickman – $866,430.$1,574,205.
We do not provide any compensation or benefits to any of our NEOs solely on account of the occurrence of a change in control of the Company. The RSU award agreements do not provide for accelerated vesting upon the occurrence of a change in control.
2022 Compensation Disclosure Ratio of the Median Annual Total Compensation of All Company Employees to the Annual Total Compensation of the Company’s Chief Executive Officer
Mr. Christopher J. Constant, who serves as the Company’s President and Chief Executive Officer, had fiscal 2022 total compensation of $2,210,657, as reflected in the Summary Compensation Table included in this Proxy Statement. We estimate that the annual compensation for the median employee of the Company, excluding our Chief Executive Officer, was $237,005 for 2022. As a result, Mr. Constant’s 2022 annual compensation was approximately 9.3 times that of the median employee.
The following chart presents information regarding Getty’s equityTo determine the annual total compensation plansof the “median employee,” the methodology and the material assumptions, adjustments, and estimates that we used were as of December 31, 2021:
| Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column of this chart) | ||||
| Equity Compensation Plans approved by stockholders: | |||||||
| - the 2004 Plan | 3,776,246(1) | $0.00 | 2,854,846(2) | ||||
| Equity Compensation Plans not approved by stockholders | N/A | N/A | N/A | ||||
| Total | 3,776,246 | 2,854,846 |
follows:
| For 2022, we used a determination date of December 31, 2022. For purposes of this disclosure, as permitted by SEC regulations, we used the same median employee as in our 2022 proxy statement because there was no material change in our employee population or employee compensation arrangements during 2022 that we reasonably believed would result in a significant change to our pay ratio disclosure. |
| (2) | For purposes of reporting the ratio of annual total compensation of the Chief Executive Officer to the median employee, both the Chief Executive Officer and |
Executive Compensation(continued)
The following text and table discuss the compensation paid to each of our non-employee directors for 2021:2022:
For 20212022 (i) all non-employee directors received an annual director fee of $40,000; (ii) Members of our Audit Committee received an annual fee of $12,500, except for the Chairman of the Audit Committee, who received an annual fee of $20,000; (iii) Members of our Compensation Committee received an annual fee of $5,000, except for the Chairman of the Compensation Committee, who received an annual fee of $7,500; and (iv) Members of our Nominating/Corporate Governance Committee received an annual fee of $5,000, except for the Chairman of the Nominating/Corporate Governance Committee, who received an annual fee of $7,500. In addition, Mr. Safenowitz received a fee of $12,500 for his first quarter 2021 services as Lead Independent Director, and thereafter received a prorated annual fee for his services as Chairman of the Board in 2021, as described below. All annual fees payable to directors are paid in four equal quarterly installments and prorated for partial years of service.
Non-employee directors are also reimbursed for travel and other expenses related to Company business.
Mr. Liebowitz served as our Chairman of the Board from 1971 until his retirement in February 2021. Mr. Liebowitz had retired as an employee of the Company on June 28, 2013. For 2021, the annual fee for services as Chairman of the Board was $125,000 (paid quarterly). Mr. Liebowitz received a fee of $31,250 for his first quarter services as Chairman of the Board, in addition to the first quarter director fee of ($10,000) paid to all non-employee directors, as noted above. Following his appointment to the position of Chairman of the Board, Mr. Safenowitz received a proratedan annual fee of $93,750 (payable in three quarterly installments of $31,250 each)$125,000 (paid quarterly) for his services as Chairman of the Board, in addition to the quarterly installments of the annual director fee paid to all non-employee directors, as noted above. Mr. Constant is not separately compensated for his services on the Board of Directors; his compensation for services as an employee is discussed in the “Compensation Discussion and Analysis” section on page 3236 of this Proxy Statement.
Generally, to better align the interests of our non-employee directors with the interests of the Company’s stockholders, the Compensation Committee grants equity-based awards under the 2004 Plan to the Company’s non-employee directors consisting of RSUs (including dividend equivalents paid with respect to such RSUs). RSU awards vest ratably over a five-year period commencing with the first anniversary of the grant date. RSUs granted before 2009 provide for settlement upon termination of service as a director and RSUs granted in 2009 and thereafter provide for settlement upon the earlier of the tenth anniversary of the grant date (or the tenth anniversary of the first vesting date, for RSUs granted in 2016-2018), or upon termination of service as a director. The award agreements also provide for optional vesting of a director’s RSUs in the event of the “Retirement” (as defined in the award agreement) of the subject non-employee director, if approved by the Compensation Committee in its discretion.
In February 2021,2022, the Compensation Committee approved a grant of 7,000 RSUs to each of the non-employee directors, excluding Mr. Liebowitz, who retired as Chairman of the Board effective February 2021. In connection with Ms. Infurna’s appointment to the Board of Directors in July 2021, the Compensation Committee approved a grant of 3,500 RSUs to Ms. Infurna. directors. The Compensation Committee’s determination to award RSUs was in order to further align the interests of directors with the Company’s stockholders and also to provide additional value to directors for their contributions to the Company.
| Name | Fees Earned or Paid in Cash ($) | Stock Awards(1) ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation | All Other Compensation ($) | Total ($) | ||||||||
| Milton Cooper | 47,500 | 191,660 | — | — | — | — | 239,160 | ||||||||
| Philip E. Coviello | 70,000 | 191,660 | — | — | — | — | 261,660 | ||||||||
| Evelyn León Infurna | 46,250 | 191,660 | — | — | — | — | 237,910 | ||||||||
| Mary Lou Malanoski | 60,000 | 191,660 | — | — | — | — | 251,660 | ||||||||
| Richard E. Montag(2) | 56,250 | 191,660 | — | — | — | — | 247,910 | ||||||||
| Howard B. Safenowitz | 168,614 | 191,660 | — | — | — | — | 360,274 | ||||||||
| $448,614 | $1,149,960 | $0 | $0 | $0 | $0 | $1,598,574 |
Executive Compensation(continued)
| Name | Fees Earned or Paid in Cash ($) | Stock Awards(1) ($) | Option Awards ($) | Non Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation | All Other Compensation ($) | Total ($) | ||||||||
| Milton Cooper | 50,000 | 199,430 | — | — | — | — | 249,430 | ||||||||
| Philip E. Coviello | 70,000 | 199,430 | — | — | — | — | 269,430 | ||||||||
| Evelyn León Infurna | 22,500 | 108,535 | — | — | — | — | 131,035 | ||||||||
| Leo Liebowitz(2) | 41,250 | 0 | — | — | — | — | 41,250 | ||||||||
| Mary Lou Malanoski | 56,250 | 199,430 | — | — | — | — | 255,680 | ||||||||
| Richard E. Montag | 57,500 | 199,430 | — | — | — | — | 256,930 | ||||||||
| Howard B. Safenowitz | 140,000 | 199,430 | — | — | — | — | 339,430 | ||||||||
| $437,500 | $1,105,685 | $0 | $0 | $0 | $0 | $1,543,185 |
| (1) | The Company granted 7,000 RSUs to each non-employee director in |
| (2) | Mr. Montag retired in February 2023. |
| GETTY REALTY 2023 Proxy Statement | 47 |
Executive Compensation(continued)
Pay Versus Performance
As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(v) of Regulation S-K, we are providing the following information about the relationship between executive compensation actually paid and certain financial performance of the Company. For further information concerning the Company’s variable pay-for-performance philosophy and how the Company aligns executive compensation with the Company’s performance, refer to “Executive Compensation – Compensation Discussion and Analysis.” Fair value amounts below are computed in a manner consistent with the fair value methodology used to account for share-based payments in our financial statements under generally accepted accounting principles. Total shareholder return has been calculated in a manner consistent with Item 402(v) of Regulation S-K.
| Value of Initial Fixed $100 Investment Based on: | ||||||||||||||||
| Year(1) | Summary Compensation Table Total for PEO ($)(2) | Compensation Actually Paid to PEO ($)(3) | Average Summary Compensation Table Total for Non-PEO Named Executive Officers ($)(4) | Average Compensation Actually Paid to Non-PEO Named Executive Officers ($)(5) | Total Shareholder Return ($)(6) | Peer Group Total Shareholder Return ($)(6)(7) | Net Income ($) (in thousands)(8) | AFFO ($) per share(9) | ||||||||
| 2022 | $2,210,657 | $2,599,157 | $1,499,777 | $1,757,274 | $121.71 | $101.64 | $90,043 | $2.14 | ||||||||
| 2021 | $1,917,849 | $2,352,194 | $1,331,808 | $1,596,281 | $107.74 | $118.33 | $62,860 | $2.08 | ||||||||
| 2020 | $1,714,764 | $1,501,844 | $971,034 | $532,456 | $89.04 | $88.70 | $69,388 | $1.94 | ||||||||
| (1) | In accordance with the transitional relief under the SEC rules, only three years of information is required as this is the Company’s first year of disclosure under Item 402(v) of Regulation S-K. |
| (2) | For all years in question, our Principal Executive Officer (PEO) was the Company’s President and Chief Executive Officer, Christopher J. Constant. |
| (3) | The following tables set forth the adjustments made during each year represented in the Pay Versus Performance Table to arrive at compensation “actually paid” to our PEO during each of the years in question: |
| Adjustments to Determine Compensation “Actually Paid” for PEO | Deduction for Amounts Reported under the “Stock Awards” Column in the SCT | Increase for Fair Value of Awards Granted during the year that Remain Unvested as of Year End | Increase for Fair Value of Awards Granted during the year that Vest during year | Increase/deduction for Change in Fair Value from prior Year-end to current Year-end of Awards Granted Prior to year that were Outstanding and Unvested as of Year-end | Increase/deduction for Change in Fair Value from Prior Year-end to Vesting Date of Awards Granted Prior to year that Vested during year | Deduction of Fair Value of Awards Granted Prior to year that were Forfeited or Modified during year | Dollar Value of Dividends or other Earnings Paid on Stock Awards prior to Vesting Date not otherwise included in Total Compensation | Total Adjustments | ||||||||
| 2022 | ($1,095,200) | $1,354,000 | $0 | $90,640 | ($103,620) | $0 | $142,680 | $388,500 | ||||||||
| 2021 | ($854,700) | $962,700 | $0 | $197,925 | $18,050 | $0 | $110,370 | $434,345 | ||||||||
| 2020 | ($724,500) | $688,500 | $0 | ($199,875) | ($60,295) | $0 | $83,250 | $212,920 |
| (4) | During 2022 and 2021, our remaining NEOs consisted of Mark J. Olear (Chief Operating Officer and Chief Investment Officer), Joshua Dicker (General Counsel), and Brian R. Dickman (Chief Financial Officer). During 2020, our remaining NEOs were the same NEOs as 2021 with the addition of Danion Fielding (former Chief Financial Officer) who resigned effective December 11, 2020. Mr. Dickman was appointed Chief Financial Officer effective December 14, 2020. |
| (5) | The following tables set forth the adjustments made during each year represented in the Pay Versus Performance Table to arrive at compensation “actually paid” to our PEO during each of the years in question: |
| Adjustments to Determine Compensation “Actually Paid” for PEO | Deduction for Amounts Reported under the “Stock Awards” Column in the SCT | Increase for Fair Value of Awards Granted during the year that Remain Unvested as of Year End | Increase for Fair Value of Awards Granted during the year that Vest during year | Increase/deduction for Change in Fair Value from prior Year-end to current Year-end of Awards Granted Prior to year that were Outstanding and Unvested as of Year-end | Increase/ deduction for Change in Fair Value from Prior Year-end to Vesting Date of Awards Granted Prior to year that Vested during year | Deduction of Fair Value of Awards Granted Prior to year that were Forfeited or Modified during year | Dollar Value of Dividends or other Earnings Paid on Stock Awards prior to Vesting Date not otherwise included in Total Compensation | Total Adjustments | ||||||||
| 2022 | ($698,190) | $863,175 | $0 | $56,484 | $(53,198) | $0 | $89,227 | $257,498 | ||||||||
| 2021 | ($555,555) | $625,755 | $0 | $115,327 | $12,617 | $0 | $66,329 | $264,473 | ||||||||
| 2020 | ($463,118) | $356,645 | $0 | ($73,021) | ($28,397) | ($238,308) | $7,622 | ($438,578) |
| (6) | Total shareholder return is calculated for each year based on a fixed investment of $100 from the beginning of the earliest year in the table (December 31, |
| 48 | GETTY REALTY 2023 Proxy Statement |
Executive Compensation(continued)
| (7) | Our peer group is the same peer group as reported in our Form 10-K pursuant to Item 201(e) of Regulation S-K: Agree Realty Corporation, EPR Properties, Essential Properties Realty Trust, Four Corners Properties Trust, NETSTREIT Corp (was not publicly traded in 2019), and One Liberty Properties. We have chosen these companies as our Peer Group because a substantial segment of each of their businesses is owning and leasing single tenant net lease retail properties. |
| (8) | Net income is reported as Net Earnings in the Company’s financial statements. |
| (9) | The Company selected Adjusted Funds from Operations (AFFO) as its Company-selected measure for the reasons set forth below. |
List of Most Important Financial Performance Measures
The following table outlines what we believe to be our NEO’s key performance measures, in no particular order, given our status as a REIT. These key performance measures are further described in “2022 Company Performance Highlights” section on page 36.
| KEY PERFORMANCE MEASURES | |
| Adjusted Funds from Operations (AFFO) per share | Net Debt to EBITDA |
| Annual Base Rent | Portfolio Diversification |
We believe Adjusted Funds from Operations (AFFO) per share to be the most significant measure in determining the compensation of our NEOs because we believe it best reflects the core operating performance of our portfolio. In addition, AFFO per share is generally considered by analysts and investors to be an appropriate supplemental non-GAAP measure of performance for REITs and has utility in comparing our core operating performance between periods and to the core operating performance of comparable real estate companies.
Pay Versus Performance Relationship Disclosures
The chart below illustrates the correlation between NEO compensation, (i) net income per share and (ii) AFFO per share for 2020, 2021, and 2022.
GETTY REALTY 2023 Proxy Statement | 49 |
Executive Compensation(continued)
The chart below provides a comparison between the Company total shareholder return against the total shareholder return of our peer group.
Equity Compensation Plans
The following chart presents information regarding Getty’s equity compensation plans as of December 31, 2022:
| Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in the first column of this chart) | |||
| Equity Compensation Plans approved by stockholders: | ||||||
| - the 2004 Plan | 1,117,250(1) | $0.00 | 2,639,386(2) | |||
| Equity Compensation Plans not approved by stockholders | N/A | N/A | N/A | |||
| Total |
| (1) | Represents shares underlying outstanding vested and |
| (2) |
Compensation Committee Interlocks and Insider Participation
The members of the Compensation Committee for calendar year 2021 were2022 were: Messrs. Cooper Coviello,and Coviello; Mr. Montag for the period January 1, 2022 until his resignation from the Committee in October, 2022; and Safenowitz.Ms. Infurna for the period from her appointment to the Committee in October, 2022 through December 31, 2022. There were no Compensation Committee interlocks to report in 2021.2022.
| 50 | GETTY REALTY |
Advisory (Non-Binding) Vote On Named
Executive Compensation (Say-On-Pay)
(Item No. 2 on the Proxy Card)
Background
The Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act, requires that our stockholders have the opportunity to cast an advisory (non-binding) vote on named executive compensation, commonly referred to as a “Say-on- Pay” vote.
The Dodd-Frank Act also requires that a “say-on-frequency” vote be held at least every six years. At the Company’s 2017 Annual Meeting, we held a vote, on an advisory basis, on whether to hold an advisory vote on named executive compensation every year, every two years, or every three years. Accordingly, the next “say-on-frequency” vote will be held at the Company’s 2023 Annual Meeting. At the 2017 Annual Meeting, the Company’s stockholders voted, on an advisory basis, to recommend that the future advisory votes on named executive compensation be held annually, which was consistent with the recommendation of the Board of Directors. Accordingly, we have held an advisory vote on named executive compensation at each Annual Meeting since the 2017 Annual Meeting. We are asking our stockholders to vote on “say-on-frequency” at this Annual Meeting. (See Proposal No. 3).
The affirmative vote of a majority of the votes cast at the Annual Meeting will be necessary to approve the advisory vote on named executive compensation. For purposes of the advisory vote to approve the named executive officer compensation, abstentions and broker non-votes are not considered votes cast and will have no effect on the outcome of this proposal.
The advisory vote on named executive compensation is a non-binding vote on the compensation of our NEOs as described in the Compensation“Compensation Discussion and AnalysisAnalysis” section, the tabular disclosure regarding such compensation, and the accompanying narrative disclosure, set forth in this Proxy Statement. The Compensation“Compensation Discussion and AnalysisAnalysis” section starts on page 3236 of this Proxy Statement. Please read the Compensation“Compensation Discussion and AnalysisAnalysis” section which provides a detailed discussion of our executive compensation program and compensation philosophy, including information about 20212022 compensation of our NEOs. This advisory vote on executive compensation is not a vote on our general compensation policies, the compensation of our Board of Directors, or our compensation policies as they relate to risk management.
The vote solicited by this Proposal No. 2 is advisory and therefore is not binding on the Company, our Board of Directors or our Compensation Committee. The outcome of the vote will not require the Company, our Board of Directors or our
Compensation Committee to take any action and will not be construed as overruling any decision by the Company, our Board of Directors or our Compensation Committee. Furthermore, because this non-binding, advisory vote primarily relates to the compensation of our NEOs that has already been paid or contractually committed, there is generally no opportunity for us
to revisit these decisions. However, our Board of Directors, including our Compensation Committee, values the opinions of our stockholders, and, to the extent there is any significant vote against the NEO compensation as disclosed in this Proxy Statement, we will consider our stockholders’ concerns and evaluate what actions, if any, may be appropriate to address those concerns. Stockholders will be asked at the Annual Meeting to approve the following resolution pursuant to this Proposal No. 2:
RESOLVED,, that the stockholders of Getty Realty Corp. approve, on an advisory basis, the Named Executive Officer compensation as disclosed pursuant to Item 402 of Regulation S-K, including the Compensation Discussion and Analysis, compensation tables and narrative discussion included in this proxy statement.
Recommendation
The Board of Directors unanimously recommends a vote “FOR” approval of the foregoing resolution. Proxies will be so voted unless stockholders specify otherwise in their proxies.
| GETTY REALTY | 51 |
Proposal No. 3
Advisory (Non-Binding) Vote On The Frequency of Future Advisory Votes On Executive Compensation (Say-On-Frequency)
(Item No. 3 on the Proxy Card)
Background
Pursuant to Section 14A of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we are asking stockholders to vote on whether future advisory votes on executive compensation of the nature reflected in
Proposal 2 above should occur every year, every two years or every three years. We have had annual votes starting with the 2011 Annual Meeting.
While the Company’s executive compensation programs are designed to promote a long-term connection between pay and performance, the Board of Directors recognize that executive compensation disclosures are made annually. Holding an annual advisory vote on executive compensation provides the Company with more direct and immediate feedback on our compensation disclosures. However, stockholders should note that because the advisory vote on executive compensation occurs well after the beginning of the compensation year, and because the different elements of our executive compensation programs are designed to operate in an integrated manner and to complement one another, in many cases it may not be appropriate or feasible to significantly change our executive compensation programs in consideration of any one year’s advisory vote on executive compensation by the time of the following year’s annual meeting of stockholders. We believe that an annual advisory vote on executive compensation is consistent with our practice of seeking input and engaging in dialogue with our stockholders on corporate governance matters and our executive compensation philosophy, policies and practices.
This advisory vote on the frequency of future advisory votes on executive compensation is non-binding on the Board of Directors. Stockholders will be able to specify one of four choices for this proposal on the proxy card: one year, two years, three years or abstain. Stockholders are not voting to approve or disapprove the recommendation of the Board of Directors. Although non-binding, the Board of Directors and the Compensation Committee will carefully review the voting results. Notwithstanding the recommendation of the Board of Directors and the outcome of the stockholder vote, the Board of Directors may in the future decide to conduct advisory votes on a more or less frequent basis and may vary its practice based on factors such as discussions with stockholders and the adoptions of material changes to compensation programs.
Recommendation
The Board of Directors recommends a vote to conduct future advisory votes on executive compensation every year.
| 52 | GETTY REALTY 2023 Proxy Statement |
To Our Stockholders:
This report addresses our compliance with rules of the Securities and Exchange Commission (the “SEC”) and the listing standards of the New York Stock Exchange (the “NYSE”) designed to enhance audit committee effectiveness to improve public disclosure about the functioning of corporate audit committees and to enhance the reliability and credibility of financial statements of public companies.
The Audit Committee of the Board of Directors of Getty Realty Corp., a Maryland corporation (the “Company”), is responsible for providing objective oversight of the Company’s financial accounting and reporting functions, system of internal control and audit process. The Audit Committee also oversees the Company’s compliance with legal and regulatory requirements, the independent auditors’ qualifications and independence, the performance of the Company’s internal audit function and the independent auditors, the Company’s compliance programs, including the Company’s Business Conduct Guidelines, and Complaint and Investigation Procedures, and the Company’s policies and procedures related to risk assessment and risk management. oversees:
| ■ | the Company’s compliance with legal and regulatory requirements, |
| ■ | the independent auditors’ qualifications and independence, |
| ■ | the performance of the Company’s internal audit function and the independent auditors, |
| ■ | the Company’s compliance programs, including the Company’s Business Conduct Guidelines, and Complaint and Investigation Procedures, and |
| ■ | the Company’s policies and procedures related to risk assessment and risk management. |
The Audit Committee operates under a written charter adopted by the Board of Directors that outlines its responsibilities and the procedures that it follows. A copy of the Audit Committee’s Charter is available on the Investor Relations section on the Company’s website located at www.gettyrealty.com and is available in print to any stockholder who requests it. The Audit Committee reviews and assesses the adequacy of its charter at least annually and, when appropriate, recommends to the Board of Directors changes to the charter to reflect the evolving role of the Audit Committee. As part of the foregoing process, in February 2022, the Audit Committee amended the Audit Committee’s Charter to codify the Audit Committee’s long-standing practice of overseeing the Company’s policies and procedures related to risk assessment and risk management, including with respect to information security and data protection. Effective as of February 21, 2023, the Audit Committee’s Charter was revised to clarify that the Audit Committee’s oversight responsibilities for risk assessment and risk management expressly includes responsibility for climate related risks in the Company’s financial statements as and to the extent required by the applicable rules and regulations promulgated by the SEC or FASB.
Internal Control and Financial Reporting Process
The Company’s management is responsible for the Company’s system of internal control and its financial reporting process. The independent registered public accountants, PricewaterhouseCoopers LLP, are responsible for performing an independent integrated audit of the Company’s consolidated financial statements and its internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (“PCAOB”) and to issue a report thereon. The Audit Committee is responsible for the monitoring and oversight of these processes.
Enterprise Risk Management
The Audit Committee assists the Board of Directors in its oversight of the Company’s external and internal enterprise risks, which includes assessing such risks and the effectiveness of the Company’s risk mitigation efforts, as well as the Company’s policies and procedures relating to risk mitigation and risk control for the enterprise as a whole. The Audit Committee’s oversight function includes responsibility for evaluating the impact such risks and risk mitigation efforts have had or may have on the Company’s financial reporting process and financial reports. At each quarterly meeting, the Audit Committee receives a comprehensive enterprise risk management report from the Chief Executive Officer with respect to the Company’s enterprise risk management practices and risk mitigation efforts which includes a review of the developments in such risks or mitigation efforts from previous periods. The Audit Committee Chair reports to the full Board of Directors after each quarterly meeting on any material developments in these risks overseen by the Audit Committee and the full Board of Directors reviews these risks as they may impact the enterprise at large.
| GETTY REALTY 2023 Proxy Statement | 53 |
Report of the Audit Committee(continued)
Information Security and Data Protection
As part of the Audit Committee’s risk oversight function, at each quarterly meeting, the Audit Committee receives a report from its senior management, including its Chief Executive Officer, Chief Financial Officer or General Counsel, on the Company’s program, policies and procedures related to information security and data protection, including as they relate to financial reporting and controls and procedures with respect thereto. The Audit Committee Chair reports to the full Board of Directors after each quarterly meeting on any material developments overseen by the Audit Committee, including with respect to information security and data protection, and the full Board of Directors reviews these risks as they may impact the enterprise at large, including with respect to information security and data protection. The Company utilizes a commercially available third-party hosted cloud network environment with commercially available systems, software, tools and monitoring to provide security to protect its information and data and alert it to potential information security breaches. The third party engaged by the Company to oversee and host its network was engaged, in part, because of its experience with information security and data protection and products designed to manage against information and data security breaches. The Company conducts
Report of the Audit Committee (continued)
mandatory annual cybersecurity training for employees and has information security and data privacy policies and procedures in place applicable to the Company’s directors, officers, and employees. In 2022, the Company engaged an outside consultant to conduct a cybersecurity assessment, the methodology for which assessment was based on information security frameworks and guidelines such as the National Institute of Standards and Technology (NIST), Center for Information Security (CIS), and ISO27001. The Company received the results of the assessment in December 2022, which management reviewed with the Audit Committee during the first quarter of 2023. For the years ended December 31, 2022, 2021 2020 and 20192020 the Company did not incur any expenses for penalties or settlements related to any information security breaches experienced by the Company.
Independence/Qualifications
The Audit Committee is composed entirely of non-employee directors. The Board of Directors determined that for the year ended December 31, 20212022 each member of the Audit Committee, then consisting of Messrs. Coviello and Montag and
Ms. Malanoski, was “independent”, as such term is defined in the listing standards of the NYSE, as well as under the additional, heightened independence criteria applicable to members of the Audit Committee under SEC and NYSE rules and that each member who served on the Audit Committee for 20212022 is “financially literate”, as such term is defined in the listing standards of the NYSE. While not on the Audit Committee for 2022, Ms. Infurna was also determined by the Board of Directors to be “financially literate”, as such term is defined in the listing standards of the NYSE. The Board of Directors also determined that for the year ended December 31, 2021, Ms. Malanoski and2022, each member of the Audit Committee, then consisting of Messrs. Coviello and Montag eachand Ms. Malanoski, qualified as an “audit committee financial expert” under the relevant rules of the SEC and each had the requisite accounting/financial management expertise required by the listing standards of the NYSE. At a meeting held on February 21, 2023, in connection with Ms. Infurna’s appointment to the Audit Committee, the Board of Directors determined that Ms. Infurna qualified as an “audit committee financial expert” under the relevant rules of the SEC and had the requisite accounting/financial management expertise required by the listing standards of the NYSE.
During the past year, the Audit Committee met regularly with management to assure that the Company’s internal control over financial reporting continued to meet applicable standards under the Sarbanes-Oxley Act and are compliant with the listing standards of the NYSE. The Company’s internal control over financial reporting was reviewed and tested by PricewaterhouseCoopers LLP, our independent auditors. Their report is included in our Annual Report on Form 10-K for the year ended December 31, 2021.2022. At the Audit Committee meeting held on February 23, 2022,21, 2023, the Committee reviewed the Company’s internal control over financial reporting with management and PricewaterhouseCoopers LLP and determined that the Company is in compliance with the requirements applicable to it.
With regard to our audited financial statements, the Audit Committee has:
| (1) | reviewed and discussed the audited financial statements with management and with PricewaterhouseCoopers LLP; |
| (2) | discussed with PricewaterhouseCoopers LLP those matters required to be discussed under PCAOB standards, including those required by Auditing Standard No. 1301 (Communications with Audit Committees); |
| 54 |
Report of the Audit Committee(continued)
(3) | (a) received the written disclosures and the letter from PricewaterhouseCoopers LLP required by applicable requirements of the PCAOB regarding PricewaterhouseCoopers LLP’s communications with the Audit Committee concerning independence, and (b) discussed with PricewaterhouseCoopers LLP their independence; and |
| (4) | based upon the review and discussions set forth in paragraphs (1) through (3) above, |
Prior to the filing with the SEC of each of the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30 and September 30, 2021,2022, the Audit Committee Chairman or another member of the Audit Committee reviewed with the Company’s management and PricewaterhouseCoopersPrice water house Coopers LLP the Company’s interim financial results to be included in such reports and the matters required to be discussed by Auditing Standard No. 1301.
The report of the Audit Committee should not be deemed incorporated by reference by any general statement incorporating this Proxy Statement by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Securities Exchange Act, of 1934, as amended (the “Exchange Act”), except to the extent that the Company specifically incorporates this information by reference, and should not otherwise be deemed filed under the Securities Act or the Exchange Act.
Audit Committee:
Philip E. Coviello (Chairman)
Evelyn León Infurna2
Mary Lou MalanoskiRichard E. Montag
| 2 | Ms. Infurna was appointed to the Audit Committee on February 21, 2023 following Richard E. Montag’s retirement from the Board of Directors and resignation from the Audit Committee on the same date. Ms. Infurna did not participate in formal discussions as a member of the Audit Committee with respect to the year ended December 31, 2022. |
| GETTY REALTY | 55 |
Ratification of Appointment of Independent
Registered Public Accounting Firm
(Item No. 34 on the Proxy Card)
On February 23, 2021,21, 2023, the Audit Committee appointed the firm of PricewaterhouseCoopers LLP (“PwC”), subject to ratification by the stockholders at the Annual Meeting, to audit the accounts of Getty with respect to our operations for the year ending December 31, 20212023 and to perform such other services as may be required. There are no affiliations between the Company and PwC, its partners, associates or employees, other than pertaining to its engagement as independent registered public accountants for the Company in previous years. Should PwC be unable to perform these services for any reason, the Audit Committee will appoint another independent registered public accounting firm to perform these services. As long as a quorum is present, a majority of votes cast at the Annual Meeting is necessary to ratify the appointment of the independent registered public accounting firm. For purposes of the appointment of PwC, abstentions are not considered votes cast and will have no effect on the outcome of this proposal. (The ratification of the appointment of auditors is considered a “routine” matter under The New York Stock Exchange (“NYSE”) rules for which brokers, banks, nominees or other record holders have discretionary authority to vote without receiving instructions from the beneficial owner of the shares. See “Broker Non-Votes” at page 79 of this Proxy Statement for further information.)
The Audit Committee is directly responsible for the appointment, compensation, retention and oversight of the work of the independent registered public accounting firm retained to audit the Company’s financial statements. The Audit Committee is responsible for the audit fee negotiations associated with the Company’s retention of PwC. The Audit Committee’s Pre-Approval Policy requires pre-approval of services to be provided by PwC. The policy authorizes the Audit Committee to delegate to one or more of its members, and the Audit Committee has delegated to each of its members, authority to pre-approve non-audit services. Each member is required to report any pre-approval decisions to the Audit Committee at its next scheduled meeting. All of the non-audit services performed by PwC in 20202021 and 20212022 were pre-approved by the Audit Committee.
The fees payable to PwC, our independent registered public accounting firm, related to services provided for the years ended December 31, 20212022 and 20202021 were as follows:
| 2021 | 2020 | ||||||||
| (a) | Audit Fees(1) | $ | 801,510 | $ | 1,294,000 | ||||
| (b) | Audit Related Fees (assurance and related services reasonably related to audit or review of financial statements not reported under (a))(2) | $ | 100,000 | $ | 216,000 | ||||
| (c) | Tax Fees (professional services for tax compliance, advice and planning)(3) | $ | 341,000 | $ | 307,000 | ||||
| (d) | All Other Fees | $ | — | $ | — |
| 2022 | 2021 | ||||||
| (a) Audit Fees(1) | $ | 1,335,000 | $ | 801,510 | |||
| (b) Audit Related Fees (assurance and related services reasonably related to audit or review of financial statements not reported under (a))(2) | $ | 71,000 | $ | 100,000 | |||
| (c) Tax Fees (professional services for tax compliance, advice and planning)(3) | $ | 384,000 | $ | 341,000 | |||
| (d) All Other Fees | $ | — | $ | — |
| (1) | Includes the aggregate fees and expenses paid for professional services rendered by PwC for the integrated audit of the Company’s annual consolidated financial statements for the year and of its internal control over financial reporting as of year-end and the reviews of the financial statements included in the Company’s Quarterly Reports on Form 10-Q for the year. |
| (2) | Represents fees for professional services rendered by PwC related to the comfort letters and other audit related services. |
| (3) | Represents fees for federal and state tax compliance, planning and tax research. |
Representatives of the firm of PwC are expected to be present at the Annual Meeting, will have the opportunity to make a statement if they desire to do so, and will be available to respond to appropriate questions from stockholders.
Recommendation
The Board of Directors recommends that you vote “FOR” the proposal to ratify the selection of PricewaterhouseCoopers LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2021.2023.
| 56 | GETTY REALTY |
Approval of the Charter Amendment Proposal
(Item No. 4 on the Proxy Card)
Our Board of Directors, based upon the recommendation of our Nominating/Corporate Governance Committee, has declared advisable and recommends that our stockholders approve an amendment to the Company’s Charter (the “Proposed Charter Amendment”) to provide the Company’s stockholders the power to alter, repeal, amend or rescind the Bylaws or to make new Bylaws by the affirmative vote of the holders of a majority of the outstanding shares of common stock of the Company entitled to vote on the matter pursuant to a binding proposal timely submitted by a stockholder (or stockholder group) that satisfies the ownership and other eligibility requirements of Rule 14a-8 of the Securities Exchange Act of 1934, as amended, for the periods and as of the dates specified in Rule 14a-8. Additionally, the Proposed Charter Amendment will continue to reserve to our Board of Directors the power to alter, repeal, amend or rescind any provision of the Bylaws and to make new Bylaws. We refer in this Proxy Statement to this proposal for our stockholders to approve the Proposed Charter Amendment to provide both our Board of Directors and our stockholders the concurrent power to alter, repeal, amend or rescind the Bylaws or to make new Bylaws on the terms set forth in the form of Articles of Amendment annexed to this Proxy Statement on the attached Appendix A, as the “Charter Amendment Proposal.”
Background
On February 23, 2022, our Board of Directors, based upon the recommendation of our Nominating/Corporate Governance Committee, amended Article XIV of the Bylaws to provide that in addition to the power of our Board of Directors to alter, repeal, amend or rescind any provision of the Bylaws and to make new Bylaws, the Company’s stockholders have the power to alter, repeal, amend or rescind the Bylaws or to make new Bylaws by the affirmative vote of the holders of a majority of the outstanding shares of common stock of the Company entitled to vote on the matter pursuant to a binding proposal timely submitted by a stockholder (or stockholder group) that satisfies the ownership and other eligibility requirements of Rule 14a-8 of the Securities Exchange Act of 1934, as amended, for the periods and as of the dates specified in Rule 14a-8. Previously, Article XIV of the Bylaws provided that our Board of Directors had the exclusive power to alter, repeal, amend or rescind any provision of the Bylaws and to make new Bylaws. The amendment to Article XIV of the Bylaws was effectively immediately upon approval our Board of Directors.
As of the date of this Proxy Statement, our Charter is silent as to the rights of the stockholders and our Board of Directors to alter, repeal, amend or rescind any provision of the Bylaws and to make new Bylaws. Accordingly, Article XIV of the Bylaws is subject to subsequent amendment by either (a) our Board of Directors, or (b) by the Company’s stockholders by the affirmative vote of the holders of a majority of the outstanding shares of common stock of the Company entitled to vote on the matter pursuant to a binding proposal timely submitted by a stockholder (or stockholder group) that satisfies the ownership and other eligibility requirements of Rule 14a-8 of the Securities Exchange Act of 1934, as amended, for the periods and as of the dates specified in Rule 14a-8.
Our Board of Directors and our Nominating/Corporate Governance Committee are committed to good corporate governance and each carefully considered the advantages and disadvantages of adopting a change to both our Charter and Bylaws to allow for both our stockholders, as well as our Board of Directors, to alter, repeal, amend or rescind any provision of the Bylaws and to make new Bylaws on the terms set forth in the Proposed Charter Amendment and Article XIV of the Bylaws, respectively. (For additional information regarding the recent corporate governance actions that our Nominating/Corporate Governance Committee and our Board of Directors have taken, please refer to “Corporate Governance and Related Matters—Committees—Nominating/ Corporate Governance Committee—Governance Oversight—Stockholder Ability to Amend the Company’s Bylaws; Opt Out of the Maryland Unsolicited Takeover Act.”) The Company’s Bylaws establish a number of fundamental corporate governance operating principles, including rules for meetings of directors and stockholders and the election and duties and responsibilities of directors and officers, among other provisions. In the past, our Board of Directors believed that the position under the Maryland General Corporation Law provided an effective means for our Board of Directors to ensure that any amendments to our Bylaws were prudent and designed to protect and maximize long-term value for all stockholders. More recently, the Nominating/Corporate Governance Committee considered the various positions for and against allowing stockholders to amend the Bylaws. After weighing these considerations, and upon the recommendation of the Nominating/Corporate Governance Committee, our Board of Directors has determined that it is advisable, subject to approval of the Charter Amendment Proposal
by the stockholders, to amend the Charter to ensure our Board of Directors and the stockholders will have the power to alter, repeal, amend or rescind the Bylaws or to make new Bylaws as contemplated in the Proposed Charter Amendment. If the Charter Amendment Proposal is approved, any subsequent amendments to repeal the new Section 6.10 of Article VI set forth in the proposed Articles of Amendment reserving to both our Board of Directors and the Company’s stockholders the power to alter, repeal, amend or rescind any provision of the Bylaws and to make new Bylaws on the terms therein set forth would require approval by the affirmative vote of the holders of a majority of the shares entitled to be cast on the matter. Our Board of Directors believes that this is an appropriate protection of our stockholders’ power to alter, repeal, amend or rescind any provision of the Bylaws and to make new Bylaws.
The general description of the Proposed Charter Amendment set forth above is qualified in its entirety by reference to the text of the Proposed Charter Amendment, which is contained in a proposed new Section 6.10 of Article VI set forth in the proposed Articles of Amendment attached as Appendix A to this Proxy Statement and is incorporated by reference herein. The Proposed Charter Amendment is analogous to the amendment to Article XIV of the Bylaws that was previously approved by the Board of Directors. Article XIV of the Bylaws, as amended on February 23, 2022, is set forth in Appendix B attached to this Proxy Statement.
Effects of the Charter Amendment Proposal
If the Charter Amendment Proposal is approved by the requisite vote of our stockholders described below under the caption “Vote Required,” the Proposed Charter Amendment will become effective upon the filing of Articles of Amendment with the State Department of Assessments and Taxation in Maryland (the “SDAT”) and reflect the adoption of a new Section 6.10 of Article VI of the Charter. If the Charter Amendment Proposal is not approved by the requisite vote of our stockholders, then the Articles of Amendment will not be filed with the SDAT and our Charter will not reserve to both our Board of Directors and our stockholders the power to alter, repeal, amend or rescind the Bylaws or to make new Bylaws on the terms set forth in the Articles of Amendment. Article XIV of our Bylaws, however, will continue to provide that, in addition to the power of our Board of Directors to alter, repeal, amend or rescind any provision of the Bylaws and to make new Bylaws, the Company’s stockholders have the power to alter, repeal, amend or rescind the Bylaws or to make new Bylaws by the affirmative vote of the holders of a majority of the outstanding shares of common stock of the Company entitled to vote on the matter pursuant to a binding proposal timely submitted by a stockholder (or stockholder group) that satisfies the ownership and other eligibility requirements of Rule 14a-8 of the Securities Exchange Act of 1934, as amended, for the periods and as of the dates specified in Rule 14a-8.
Vote Required
Pursuant to Getty’s Charter, the Charter Amendment Proposal requires the affirmative vote of a majority of all the votes entitled to be cast on the proposal at the Annual Meeting. For purposes of the Charter Amendment Proposal, abstentions will have the same effect as a vote against the proposal. Broker non-votes are not considered votes cast and will have no effect on the outcome of this proposal.
The Board of Directors unanimously recommends that you vote “FOR” the Charter Amendment Proposal.
Deadlines for Submitting Stockholder Nominees for Director and Other Stockholder Proposals for the 20222024 Annual Meeting
Stockholder proposals to be considered for inclusion in next year’s Proxy Statement pursuant to Rule 14a-8 under the Exchange Act must be received by November 17, 2022.2023. Any stockholder proposal or director nomination to be presented at the 20232024 annual meeting that is not intended to be included in next year’s Proxy Statement will be considered untimely if we receive it before January 26, 20232024 or after February 25, 2023.2024. Such proposals and nominations also must be made in accordance with our Bylaws. An untimely proposal may be excluded from consideration at the 20232024 annual meeting.
Section 16(A) Beneficial Ownership Reporting Compliance
PursuantA stockholder who wishes to Section 16(a) ofnominate a director at the 2024 annual meeting must notify us in writing no earlier than
January 26, 2024 and no later than February 25, 2024. The notice must be given in the manner and must include the information and representations required by our Bylaws and Rule 14a-19 under the Exchange Act. In order to comply with the universal proxy rules under the Exchange Act, andstockholders who intend to solicit proxies in support of director nominees other than the rules issued thereunder, Getty’s officers and directors areCompany’s nominees must provide notice that sets forth the information required to file reports of ownership and changes in ownership of Getty equity securities withby Rule 14a-19 under the SEC andExchange Act (as well as the NYSE. As a matter of practice, our administrative staff assists our executive officers and directors in preparing initial ownership reports and reporting ownership changes, and typically files those reports on their behalf. Based solely on a review of the Forms 3, 4 and 5 filed with the SEC during 2021 and written representations providedinformation required by our directors and officers, Getty believes that during 2021 all of our officers and directors complied with the Section 16(a) requirements.Bylaws) no later than February 25, 2024.
Management does not know of any matters, other than those referred to above, to be presented at the meeting for action by the stockholders. However, if any other matters are properly brought before the meeting, or any adjournment or adjournments or postponements thereof, we intend to cast votes pursuant to the proxies with respect to such matters in accordance with the best judgment of the persons acting under the proxies.
We are furnishing proxy materials to our stockholders through the internet as permitted under the rules of the Securities and Exchange Commission. Under these rules, many stockholders will receive the Notice of Internet Availability instead of a paper copy of the Notice of Annual Meeting of Stockholders and Proxy Statement, our proxy card, and our Annual Report to Stockholders. Stockholders who do not receive a Notice of Internet Availability will receive a paper copy of the proxy materials by mail. The Notice of Internet Availability instructs you how you may submit your proxy over the internet. If your shares are held in “street name”, which means they are held for your benefit in the name of a broker, bank, nominee or other record holder, you will receive instructions from your broker, bank, nominee or other record holder on how you can indicate the votes you wish to cast with respect to your shares. Please be aware that beneficial owners of shares held in “street name” must enter the control number found on their proxy card, voting instruction form or Notice of Internet Availability in order to vote during the virtual Annual Meeting.You may revoke your proxy at any time prior to it being exercised. Record holders may revoke their proxy by voting via the website during the meeting or by submitting a new proxy, dated after the date of the proxy to be revoked, to the Secretary of the Company at the Company’s address shown on the first page of this Proxy Statement, prior to the Annual Meeting. If your shares are held in “street name”, you must contact your broker, bank, nominee or other record holder for instructions on revoking your proxy. Brokerage houses and other custodians will be requested to forward solicitation material to beneficial owners of stock that they hold of record. We will reimburse brokerage houses, banks and custodians for their out of pocket expenses in forwarding proxy material to the beneficial owners. The cost of this solicitation, which will be effected by mail, will be borne by us.
| March | |
| By Order of the Board of Directors, | |
| /s/ Joshua Dicker | |
| Joshua Dicker | |
Executive Vice President, Secretary and General Counsel |
| GETTY REALTY 2023 Proxy Statement | 57 |
| GETTY REALTY |
Getty Realty Corp. Articles of Amendment
GETTY REALTY CORP., a Maryland corporation (the “Corporation”), having its principal office in the State of Maryland in Baltimore County, Maryland, hereby certifies to the State Department of Assessments and Taxation of Maryland that:
FIRST: The charter of the Corporation (the “Charter”) is hereby amended to add a new Section 6.10 to Article VI of the Charter as follows:
“Section 6.10. Bylaw Amendments.
Section 6.10.1 By Directors. The Board of Directors of the Corporation is authorized to make, repeal, alter, amend and rescind the Bylaws of the Corporation.
Section 6.10.2 By Stockholders. Pursuant to a binding proposal submitted for approval by the stockholders at a duly called annual meeting or special meeting of stockholders by a stockholder (or group of stockholders) that (a) provides to the secretary of the Corporation a timely notice of such proposal that satisfies the applicable notice procedures and all other relevant provisions of Section 3 and Section 12 of Article II of the Bylaws of the Corporation (or any successor provisions thereof), and applicable law, and (b) satisfies the ownership and other eligibility requirements of Rule 14a-8 under the U.S. Exchange Act of 1934, as amended, for the periods and as of the dates specified therein, the stockholders shall have the power to make, repeal, alter, amend and rescind the Bylaws if approved by the affirmative vote of a majority of all votes entitled to be cast on the matter.”
SECOND: The foregoing amendment does not increase the authorized stock of the Corporation.
THIRD: The foregoing amendment to the Charter of the Corporation has been advised by the Board of Directors and approved by the stockholders of the Corporation.
FOURTH: The foregoing amendment to the Charter of the Corporation shall become effective upon acceptance for record by the Maryland State Department of Assessments and Taxation.
FIFTH: The undersigned President and Chief Executive Officer of the Corporation acknowledges these Articles of Amendment to be the act and deed of the Corporation, and further, as to all matters or facts required to be verified under oath, the undersigned President and Chief Executive Officer of the Corporation acknowledges that to the best of his knowledge, information and belief, these matters and facts relating to the Corporation are true in all material respects and that this statement is made under the penalties for perjury.
[Signature page follows]
IN WITNESS WHEREOF, the Corporation has caused these Articles of Amendment to be signed in its name and on its behalf by its President and Chief Executive Officer and attested to by its Executive Vice President, General Counsel and Secretary on this____________day of_______________, 2022.
Signature Page to ArticlesTable of Amendment for Getty Realty Corp.Contents
| GETTY REALTY | 59 |
Amendment of Bylaws
Section 1. By Directors. The Board of Directors shall have the power to adopt, alter, amend, or repeal any provision of these Bylaws and to make new Bylaws.
Section 2. By Stockholders. Pursuant to a binding proposal submitted for approval by the stockholders at a duly called annual meeting or special meeting of stockholders by a stockholder (or group of stockholders) that (a) provides to the secretary of the Corporation a timely notice of such proposal that satisfies the applicable notice procedures and all other relevant provisions of Section 3 and Section 12 of Article II of the Bylaws of the Corporation (or any successor provisions thereof), and applicable law, and (b) satisfies the ownership and other eligibility requirements of Rule 14a-8 under the U.S. Exchange Act of 1934, as amended, for the periods and as of the dates specified therein, the stockholders shall have the power to make, repeal, alter, amend and rescind the Bylaws if approved by the affirmative vote of a majority of all votes entitled to be cast on the matter.
Signature [PLEASE SIGN WITHIN BOX] Date Signature (Joint Owners) Date TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS: KEEP THIS PORTION FOR YOUR RECORDS THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. DETACH AND RETURN THIS PORTION ONLY D69682-P66395 For Against Abstain ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! GETTY REALTY CORP. ATTN: CHRISTOPHER J. CONSTANT 292 MADISON AVE 9TH FLOOR NEW YORK, NY 10017-6376 1c. Philip E. Coviello 1a. Christopher J. Constant 1b. Milton Cooper 1g. Howard B. Safenowitz 1e. Mary Lou Malanoski 1d. Evelyn León Infurna 1f. Richard E. Montag Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer. 2. ADVISORY (NON-BINDING) VOTE ON NAMED EXECUTIVE COMPENSATION (SAY-ON-PAY). 3. RATI F ICATION OF THE APPOINTMENT OF PRICEWATERHOUSECOOPERS LLP AS THE COMPANY'S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING DECEMBER 31, 2022. 4. APPROVAL OF CHARTER AMENDMENT PROPOSAL. Note: And such other business as may properly come before the meeting or any adjournment thereof. 1. Election of Directors Nominees: GETTY REALTY CORP. The Board of Directors recommends you vote FOR the election of each of the following nominees: The Board of Directors recommends you vote FOR proposals 2, 3 and 4. For Withhold VOTE BY INTERNET Before The Meeting - Go to www.proxyvote.com or scan the QR Barcode above Use the Internet to transmit your voting instructions and for electronic delivery of information. Vote by 11:59 P.M. Eastern Time on April 25, 2022 for shares held directly and by 11:59 P.M. Eastern Time on April 21, 2022 for shares held in the Getty Realty Corp. Retirement and Profit Sharing Plan. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. During The Meeting - Go to www.virtualshareholdermeeting.com/GTY2022 You may attend the meeting via the Internet and vote during the meeting. Have the information that is printed in the box marked by the arrow available and follow the instructions. VOTE BY PHONE - 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions. Vote by 11:59 P.M. Eastern Time on April 25, 2022 for shares held directly and by 11:59 P.M. Eastern Time on April 21, 2022 for shares held in a Plan. Have your proxy card in hand when you call and then follow the instructions. VOTE BY MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. SCAN TO VIEW MATERIALS & VOTE w
D69683-P66395 Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting: The Notice and Proxy Statement and Annual Report are available at www.proxyvote.com. GETTY REALTY CORP. Annual Meeting of Stockholders April 26, 2022 2:30 PM EDT This proxy is solicited by the Board of Directors The undersigned stockholder of Getty Realty Corp. hereby constitutes and appoints CHRISTOPHER J. CONSTANT and BRIAN DICKMAN, and each of them individually, the true and lawful attorneys, agents and proxies of the undersigned, each with full power of substitution, to vote on all matters which may properly come before the 2022 Annual Meeting of Stockholders (or if only one shall be present and acting at the meeting then that one), all of the shares of common stock of the corporation that the undersigned would be entitled, if personally present, to vote at the Annual Meeting of Stockholders of the corporation to be held in a virtual format only, on April 26, 2022 at 2:30 PM EDT, and any adjournment or postponement thereof. This proxy will vote as the Board of Directors recommends where a choice is not specified. Continued and to be signed on reverse side