BXP Extends CEO Owen D. Thomas’ Employment Agreement and Introduces 2025 Outperformance Plan
BXP, Inc., the largest publicly traded developer, owner, and manager of premier workplace environments in the United States, announced today that it has amended and restated the employment agreement of Owen D. Thomas, who serves as the Company’s Chief Executive Officer and Chairman of the Board of Directors.
The new employment agreement largely mirrors the terms of Mr. Thomas’ prior contract but extends the duration of his employment to better align with BXP’s recently unveiled multi-year strategic action plan. That plan was introduced at the Company’s Investor Day on September 8, 2025. Mr. Thomas’ previous agreement was scheduled to expire in December 2026; under the amended agreement, his term has been extended by four years and will now run through December 31, 2029.
Joel Klein, BXP’s Lead Independent Director, expressed strong support for the extension, emphasizing the importance of leadership continuity as the Company executes its long-term strategy. “The entire Board is delighted that Owen has agreed to extend his tenure as CEO for the next four years,” Klein said. “Owen’s vision, industry expertise, and proven ability to execute make him the ideal leader to drive our strategic action plan forward and guide BXP through its next phase of growth.”
In conjunction with the amended employment agreement, BXP’s Board of Directors also approved the Company’s 2025 Outperformance Plan (OPP). Under this plan, equity awards have been granted to Mr. Thomas as well as other members of BXP’s senior leadership team. The OPP is designed to retain and motivate key executives while closely aligning their compensation with long-term shareholder value creation.
The Company stated that both the employment agreement and the OPP are intended to ensure that senior management remains fully committed to executing BXP’s strategic initiatives throughout the duration of the action plan. Notably, the OPP awards do not include provisions for accelerated or continued vesting in connection with a qualified retirement. This applies to all recipients of the awards, including Mr. Thomas, underscoring the performance-based nature of the incentives.
“These equity awards strongly and directly link the compensation of our senior management team to the creation of shareholder value,” said Timothy Naughton, Chairman of BXP’s Compensation Committee. “If our leadership team achieves maximum performance under the plan, the estimated total value of the OPP awards would represent approximately one percent of the aggregate incremental value realized by BXP’s shareholders.”
The OPP establishes clear and rigorous performance criteria tied to BXP’s dividend-adjusted common stock price. To earn any portion of the equity awards, the Company’s stock price must equal or exceed $90.00 per share for 20 consecutive trading days during the performance period, which runs from the grant date of December 22, 2025, through December 22, 2029. Achieving this threshold would represent an approximate 30 percent increase in the Company’s stock price from the grant date and would result in participants earning 12.5 percent of the maximum award opportunity.
Performance under the plan scales upward as stock price performance improves. For every additional $4.00 increase above the $90.00 threshold, the percentage of the maximum award earned increases by 12.5 percent. To achieve maximum performance under the OPP, BXP’s dividend-adjusted common stock price must reach or exceed $118.00 per share for 20 consecutive trading days. This level would represent an approximate 70 percent increase in the stock price from the grant date.
BXP emphasized that the structure of the OPP reinforces its commitment to disciplined execution, long-term value creation, and strong alignment between management and shareholders. By tying executive compensation directly to sustained stock price performance over a multi-year period, the Company aims to ensure that leadership decisions remain focused on durable growth and shareholder returns.
With the extension of Mr. Thomas’ employment agreement and the introduction of the 2025 Outperformance Plan, BXP reaffirmed its confidence in its leadership team and its strategic direction as it works to deliver long-term value in an evolving commercial real estate landscape.
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