How are REITs Managed?
Like other public companies, the corporate officers and professionals that manage REITs are accountable to both their boards of directors as well as their shareholders and creditors. Many REITs became public companies within the past 10 years, often transforming to public ownership what previously had been private enterprises. In many cases, the majority owners of these private enterprises became the senior officers of the REIT and rolled their ownership positions into shares of the new public companies. Thus, the senior management teams of many REITs have ownership interests which are aligned with the interests of shareholders.
Like other public companies, the corporate officers and professionals that manage REITs are accountable to both their boards of directors as well as their shareholders and creditors. Most REITs became public companies within the past 10 years, often transforming to public ownership what previously had been private enterprises. In many cases, the majority owners of these private enterprises became the senior officers of the REIT and rolled their ownership positions into shares of the new public companies. Thus, the senior management teams of many REITs today own a significant portion of the company’s stock, which helps to align the economic interests of management with shareholders.
