Posted: 05/07/2025 07:25 am
Tanger Inc., a prominent entity in the real estate investment trust (REIT) industry, continues to be a cornerstone in the U.S. outlet and open-air retail shopping destinations space. While the company has shown robust financial and operational metrics through recent years, a deeper look into the executive compensation structure reveals intriguing dynamics reflective of broader industry trends and internal priorities.
Tanger's executive compensation varied significantly from 2021 to 2024, highlighting evolving strategies and possibly changing performance incentives. The compensation package for Michael J. Bilerman, for instance, reflected notable variations between 2023 and 2022. In 2023, Bilerman, as the Executive Vice President, Chief Financial Officer, and Chief Investment Officer, received a total compensation of $2,846,098. This package included a hefty $695,208 in incentive plan compensation and $150,865 under the category of all other compensation. Interestingly, his compensation in 2022 was markedly higher at $5,087,078, where a significant portion comprised a $1,000,000 bonus and $1,533,622 in option awards¹.
In contrast, Justin C. Stein, Executive Vice President, Leasing, in 2024, received a total compensation of $1,607,909, predominantly driven by $497,188 in incentive plan compensation². This pattern indicates a shift towards performance-based compensation structures where stock and option awards play a relatively diminished role in the executive compensation strategy post-2022.
Recent financial disclosures and press releases support the notion of financial prudence and strategic growth underpinned by disciplined compensation practices. The 2024 financial results indicated improved sales productivity and organic growth, underscoring the successful acquisition of two open-air shopping centers, including The Promenade at Chenal in Little Rock³. This growth trajectory was further supported by the first quarter of 2025 earnings, which revealed a funds from operations (FFO) of $0.53 per share, meeting the estimated forecast⁴.
The market has responded positively, as indicated by a recent uptick in Tanger's stock price, now trading at $29.68⁵, suggesting investor confidence in its long-term strategy. With a market cap of approximately $3.36 billion, Tanger's adaptability and strategic positioning seem well-regarded in a volatile market. This optimism is further fueled by the potential for rental rate increases and the company's strong net operating income growth, positioning Tanger as an attractive investment for passive income investors⁶.
Overall, Tanger Inc.'s strategic focus appears to leverage performance-based compensation to align executive incentives with shareholder interests, amidst ongoing growth and expansion efforts that continue to position it favorably within the retail REITs sector.
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1. *United States Securities and Exchange Commission*, Michael J. Bilerman 2023 and 2022 Compensation: [Link](https://www.sec.gov/Archives/edgar/data/899715/000089971524000079/0000899715-24-000079-index.htm)
2. *United States Securities and Exchange Commission*, Justin C. Stein 2024 Compensation: [Link](https://www.sec.gov/Archives/edgar/data/899715/000089971525000096/0000899715-25-000096-index.htm)
3. *Business Wire*, Tanger's Fourth Quarter and Full Year 2024 Report: [Link](https://www.sec.gov/Archives/edgar/data/899715/000089971525000096/0000899715-25-000096-index.htm)
4. *Zacks*, Tanger Q1 FFO Meeting Estimates: [Link](https://www.zacks.com/stock/news/2459534/tanger-skt-q1-ffo-meet-estimates)
5. *Market Data*, Tanger Inc. Stock Price Snapshot: [Link](https://www.zacks.com/stock/news/2459249/tanger-skt-could-be-a-great-choice)
6. *Seeking Alpha*, Investing Outlook on Tanger Inc.: [Link](https://seekingalpha.com/article/4774646-tanger-irresistible-value-on-the-dip)
