INVESTORS REAL ESTATE TRUST (NYSE:IRET) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain OfficersItem 9.01. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Appointment of Chief Financial Officer
Effective June29, 2017, Ted E. Holmes, Chief Financial Officer and Executive Vice President of Investors Real Estate Trust (“IRET” or the “Company”) resigned his offices with the Company. He will continue as an employee of the Company through July31, 2017.
On June29, 2017, in connection with the resignation of Mr.Holmes, the Board appointed John A. Kirchmann, the Company’s Executive Vice President, to the additional position of Chief Financial Officer effective as of June29, 2017.
Mr.Kirchmann, age 52, served as Vice President of Operations Support at Essex Property Trust, a NYSE-listed multifamily REIT, from 2011 until July2016 where he was responsible for the oversight of revenue management and ancillary income, procurement and other functions. From 2007 to 2011, he served as Corporate Controller& Corporate Treasurer at Essex, where he oversaw property and corporate accounting functions, treasury management, and re-engineered and implemented new technology and systems. He has been a private consultant since July2016, providing executive accounting services to publicly traded companies, one of which was IRET. Mr.Kirchmann started his career as an accountant with KPMG. He received a B.A. in Business Administration with a Concentration in Accounting from Coe College.
There were no arrangements or understandings between Mr.Kirchmann and any other person to which Mr.Kirchmann was selected as an officer. Mr.Kirchmann does not have any family relationships subject to disclosure under Item 401(d)of Regulation S-K or any direct or indirect material interest in any transaction required to be disclosed to Item 404(a)of Regulation S-K.
Mr.Kirchmann will receive an annual base salary of $325,000.00. Upon joining the Company in April2017 as Executive Vice President, Mr.Kirchmann was issued 24,671 restricted common shares of the Company. The restricted common shares will vest in three equal 1/3 installments on April30, 2018, 2019 and 2020, provided that Mr.Kirchmann continues to be employed by IRET on those dates. If he is no longer employed by IRET on any vesting date, unvested shares shall be forfeited.
The Company will enter into an Indemnification Agreement with Mr.Kirchmann in substantially the same form as previously filed as Exhibit10.1 to the Company’s Current Report on Form8-K filed with the SEC on September21, 2015 and a Change in Control Severance Agreement as previously described in, and in substantially the same form as previously filed as Exhibit10.1 to, the Company’s Current Report on Form8-K filed with the SEC on July7, 2015.
Item 9.01. Regulation FD Disclosure.
On June29, 2017, the Company issued a press release announcing the items discussed in Item 9.01 of this Current Report on Form8-K. A copy of the press release is included as Exhibit99.1 to this Form8-K.
The information set forth in this Item 9.01, including Exhibit99.1, is being furnished to Item 9.01 and shall not be deemed “filed” for purposes of Section18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and it shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or under the Exchange Act, except as expressly provided by specific reference in such a filing.