DEF 14A of Chatham Lodging Trust
Filed Mar 31, 2026 · FY20250001437749-26-010650
Nominees for Election at the Annual Meeting
Nominees for Election at the Annual Meeting The terms of office for our trustees, Edwin B. Brewer, Jr., Jeffrey H. Fisher, David Grissen, Mary Beth Higgins, Rolf E. Ruhfus and Ethel Isaacs Williams will expire at the Annual Meeting. The Nominating and Corporate Governance Committee recommended for nomination, and the Board has nominated Ms. Higgins, Ms. Williams and each of Messrs. Brewer, Grissen, Fisher and Ruhfus to serve as trustees of our Company for one-year terms expiring at our 2027 annual meeting of shareholders and until their successors are duly elected and qualified. Unless a shareholder specifies otherwise, or does not return the enclosed proxy, each shareholder’s common shares represented by the enclosed proxy will be voted FOR the election of the nominees to serve as trustees until the 2027 annual meeting and until their successors are elected and qualified. Each nominee has indicated his or her willingness to serve if elected. While not anticipated, if any nominee shall become unavailable or unwilling to serve as a trustee for any reason, the persons named as proxies on the proxy card may vote for any substitute nominee proposed by the Board of Trustees. The Board of Trustees unanimously recommends that you vote FOR each of the trustee nominees described in this Proposal 1. The following table and biographical descriptions set forth information with respect to the six trustee nominees for election at the Annual Meeting whose terms of office will expire at the Annual Meeting.
Nominees for Election at the Annual Meeting
| Trustee Nominees for Election at the Annual Meeting |
Nominees for Election at the Annual Meeting
| Name | Age | Position | | Edwin B. Brewer, Jr. | 63 | Trustee | | Jeffrey H. Fisher | 70 | Chairman, President and Chief Executive Officer | | David Grissen | 69 | Trustee | | Mary Beth Higgins | 68 | Trustee | | Rolf E. Ruhfus | 81 | Trustee | | Ethel Isaacs Williams | 63 | Trustee |
Nominees for Election at the Annual Meeting
The Board does not have a policy with respect to trustees’ attendance at annual meetings of shareholders, and, because of the routine nature of the annual meetings and historical and anticipated low levels of in-person shareholder participation at the annual meetings, trustees are not expected to attend the Annual Meeting in person. All of the trustees attended our annual meeting of shareholders either in person or telephonically in 2025.
NOMINEES FOR ELECTION AT THE ANNUAL MEETING
NOMINEES FOR ELECTION AT THE ANNUAL MEETING Edwin B. Brewer, Jr. Mr. Brewer has been a trustee of the Company since January 2017. Prior to March 2019, he was an Executive Director – US Student Housing with Greystar Real Estate Partners. He served as Executive Vice President, Chief Financial Officer and Treasurer of Educational Realty Trust, Inc. (NYSE: EDR) from August 2014 to September 2018. From 2007 through 2012, Mr. Brewer served as Executive Vice President and Chief Financial Officer for Sedgwick Claims Management Services, Inc., the leading provider of technology-enabled claims and productivity management solutions. He was responsible for internal and external financial reporting, income taxes, real estate, budgeting, treasury and internal auditing. From 1983 to 2007, Mr. Brewer worked at PricewaterhouseCoopers where he rose to the position of partner with a client base focused on public and private real estate investment trusts ("REITs", and each a "REIT"). A certified public accountant (inactive), Mr. Brewer has a bachelor’s degree in commerce and business administration from the University of Alabama. The Board of Trustees, upon the recommendation of the Nominating and Corporate Governance Committee, has determined that Mr. Brewer should serve as a trustee due to his financial expertise and extensive experience with REITs as a Chief Financial Officer of a formerly NYSE-listed REIT and that he should serve on the Audit Committee and the Nominating and Corporate Governance Committee due to his former role as Chief Financial Officer of a publicly traded REIT.
Trustee Compensation
| Name(1) | Fees Earned or Paid in Cash | Share Awards (2) | Total | | Edwin B. Brewer, Jr. | $82,500 | $80,000 | $162,500 | | David Grissen | $47,188 | $107,500 | $154,688 | | Mary Beth Higgins | $89,688 | $80,000 | $169,688 | | Robert Perlmutter(3) | $55,833 | -- | $55,833 | | Rolf E. Ruhfus | $55,000 | $80,000 | $135,000 | | Ethel Isaacs Williams | $67,500 | $80,000 | $147,500 |
2025 Business Highlights
| • | Participated in the Global Real Estate Sustainability Benchmark (“GRESB”) for the fourth time, achieving a score of 81 percent which is 8 percent higher than peer average |
2025 Compensation Highlights
| • | No increases to our NEOs' cash bonus opportunities as a percentage of salary |
2025 Compensation Highlights
| • | No increase to the target value of our year-end 2025 equity awards (granted in 2026) which have not been adjusted since 2022 |
2025 Compensation Highlights
| • | Continued to utilize a formulaic balanced scorecard for our annual cash bonus program, with the majority tied to objective criteria |
2025 Compensation Highlights
| • | Majority of our equity awards (60%) are tied to rigorous relative TSR performance hurdles that target above-median performance and reduces payouts to the extent that our absolute TSR performance is negative |
2025 Compensation Highlights
| • | Our most recently completed performance-based award that was measured on March 1, 2026 did not meet threshold and zero LTIP units were earned, demonstrating our goal rigor |
Key Features of Our Executive Compensation Program
| • | Rigorous Goals Setting – Employ a formulaic, balanced scorecard structure for thennual cash bonus program, with the majority of incentive opportunity tied to objective performance measures and grant performance‑based equity awards featuring relative TSR hurdles calibrated to target above‑median performance, with payouts reduced in periods of negative absolute TSR |
Key Features of Our Executive Compensation Program
| • | Significant Alignment with Shareholders – Most of the compensation paid to our executives is in the form of equity awards (including approximately 60% of our CEO’s target compensation) resulting in the majority of executive pay tied to the Company’s long-term TSR performance. Additionally, 60% of the equity awards are in the form of performance-based equity that may be forfeited if certain goals are not satisfied. |
Key Features of Our Executive Compensation Program
| • | Majority of equity granted is in performance-based awards |
Key Features of Our Executive Compensation Program
| • | Caps on annual cash awards and equity award payouts |
Key Features of Our Executive Compensation Program
| • | Equity award payouts reduced if TSR is negative over the performance period |
Key Features of Our Executive Compensation Program
| • | Range of payouts (not all-or-nothing) |
Key Features of Our Executive Compensation Program
| • | Double-trigger requirement for vesting of equity awards |
Key Features of Our Executive Compensation Program
| • | Calibrate Pay Relative to Our Size – We compete for talent, investment dollars and strategic business opportunities primarily with companies that own and invest in hotel properties. Most of these companies are larger than us but reflect our most direct competitors. To recognize this fact, we use peer group data to understand incentive plan structures at comparable organizations. We also use this peer group data to understand the cost of talent, while recognizing that our pay needs to be calibrated relative to our size. Accordingly, peer group benchmarking results are size-adjusted and significantly discounted relative to the absolute dollar amounts paid to our competitors, and those reduced amounts are used to evaluate our compensation elements and levels. |
Best Practices
| What We Do | What We Don't Do | | ✓ Maintain a short-term incentive program that is performance oriented and based on three Company performance metrics and individual performance objectives | X No guaranteed minimum short-term incentive or long-term incentive payouts or annual salary increases | | ✓ Use total shareholder return (“TSR”) as the sole performance metric for our performance share units that are tied to multi-year performance | X No tax gross-ups upon a change in control | | ✓ Tie a majority of equity awards to performance-based awards | X No pledging or hedging activities permitted by our executives and trustees | | ✓ Limit the maximum payments on annual cash and equity awards. | X No plan design features that encourage excessive or imprudent risk taking | | ✓ Maintain meaningful executive and independent trustee share ownership policy: | X No dividends on unearned performance share units, other than a partial 10% tax-related distribution on performance-based LTIP Units | | • 6x for our Chief Executive Officer | X No grants of share options | | • 3x for COO; 2x for CFO | X No supplemental executive retirement plans | | • 4x annual cash retainer for independent trustees | X No grants of one-time retention awards | | ✓ Engage an independent compensation consultant | | | ✓ Conduct an annual peer group review to ensure total compensation is properly benchmarked | | | ✓ Offer limited perquisites | | | ✓ Maintain an incentive compensation clawback policy, allowing the Company to recover annual and/or long-term incentive compensation that complies with SEC requirements | | | ✓ Annual advisory vote on executive compensation | | | ✓ Compensation Committee comprised solely of independent trustees | | | ✓ Executive severance policies require double trigger for change in control payments | |
Role of the Compensation Consultant
Role of the Compensation Consultant For 2023, 2024 and 2025, the Compensation Committee engaged an independent compensation consultant, Ferguson Partners Consulting L.P. (the “Compensation Consultant”), to assist the Compensation Committee in evaluating the compensation program, determining appropriate pay levels, providing market-based compensation data, and advising on industry trends and best practices. The Compensation Committee has determined that the Compensation Consultant meets the criteria for an independent consultant in accordance with SEC guidelines for such services.
Peer Group Data
Peer Group Data Historically, the Company’s peer group has included all lodging/resort REITs excluding large- and micro-cap REITs. Due to continued consolidation in the sector over the past few years, our peer group selection criteria were expanded to include select REITs that are similarly sized (e.g., 0.5x to 2.0x Chatham’s size in terms of total capitalization) in other asset classes, with consideration given to geographic competitors for talent. Because our equity market capitalization continues to be on the lower end of the peer group range, we continued to utilize size-adjusted benchmarking data to ensure the pay levels are appropriately calibrated relative to our size by reducing absolute peer compensation. The companies comprising our peer group for 2025 are:
Executive Compensation Peer Group
Executive Compensation Peer Group
Executive Compensation Peer Group
| | Ticker Symbol | | Apple Hospitality REIT, Inc. | APLE | | CTO Realty Growth, Inc. | CTO | | DiamondRock Hospitality Company | DRH | | Park Hotels & Resorts, Inc. | PK | | Pebblebrook Hotel Trust | PEB | | RLJ Lodging Trust | RLJ | | Ryman Hospitality Properties, Inc. | RHP | | Sila Realty Trust, Inc. | SILA | | Summit Hotel Properties, Inc. | INN | | Sunstone Hotel Investors, Inc. | SHO | | Xenia Hotels & Resorts, Inc. | XHR |
Elements of Executive Compensation and Key Factors in Setting Pay
| • | Cash compensation, in the form of base salaries and annual cash bonus awards; |
Elements of Executive Compensation and Key Factors in Setting Pay
| • | Long-term incentives, in the form of time-based and performance-based restricted common share and LTIP unit awards; |
Elements of Executive Compensation and Key Factors in Setting Pay
| • | Severance arrangements under the executives’ employment agreements. |
Elements of Executive Compensation and Key Factors in Setting Pay
| • | the compensation levels of competitive jobs within our peer group (further explained below); |
Annual base salary
Base salaries are only reviewed periodically and accordingly no changes were made to 2026 base salaries. Based on the competitive market data, our NEOs’ base salaries continue to be below the median of the size-adjusted peer group (and below the 25th percentile of our peer group prior to the discount).
Annual cash bonus
Annual cash bonus For 2025, the Compensation Committee and the Board approved an annual cash bonus program that continued to utilize a formula-based approach with 60% tied to objective, financial and operational metrics and 40% based on an assessment of both Company performance and individual performance, based on goals established at the beginning of each year and utilizing the following methodology: Annual Cash Bonus Opportunities Consistent with prior years, Threshold, Target and Maximum payouts vary for each NEO as a percentage of salary, are presented below:
Annual cash bonus
| | Fisher | Craven | Wegner | | Threshold | 100% | 75% | 50% | | Target | 175% | 125% | 100% | | Maximum | 250% | 175% | 150% |
Annual cash bonus
In 2024, the Compensation Committee recommended, and the Board approved, a change to the 60% portion of the annual cash bonus based on financial metrics used for calculating by replacing RevPAR growth with Room Revenue while continuing to use Gross Operating Profit in addition to the historical AFFO per share metric. Company Performance Scorecard The following table shows the metrics and weightings of the 2025 annual cash bonus program for the executive officers:
Annual cash bonus
| Performance Criteria | Weighting | Threshold | Target | Maximum | Calculated | | Room Revenue | 20% | $265.00 | $273.20 | $281.40 | $266.10 | | Gross Operating Profit | 20% | $122.20 | $128.70 | $135.10 | $123.60 | | Adjusted FFO per Share | 20% | $0.98 | $1.06 | $1.14 | $1.02 | | Discretionary | 20% | 1 | 3 | 5 | Varies per individual | | Individual Performance | 20% | 1 | 3 | 5 | Varies per individual |
Annual cash bonus
Calculated amounts are based on actual results adjusted for the impact of unbudgeted key strategic items (e.g., acquisitions and/or sales of hotels, refinancing transactions, etc.) that were not included in the original targets for 2025. Discretionary Performance Assessment In assessing Company performance, the Committee reviewed the following performance factors in addition to the performance achievements above. The Company achieved significant operational achievements in 2025, including industry-leading RevPAR growth, in consideration of the Company’s share price performance, the Compensation Committee determined to award a score of 4 out of 5 to Messrs. Fisher and Craven and to award a score of 5 out of 5 to Mr. Wegner in recognition of his extraordinary accomplishments related to the Company's Financing activities.
Annual cash bonus
| Performance Factor | Review of 2025 Performance | | Operational Achievements | • RevPAR growth of 2.25% • Generated GOP margins of 42.5%, reflecting sector leading operating margins • Year-over-year RevPAR Index gain of 1.0%, adding approximately $3 million in incremental room revenue • Achieved meaningful operational improvements including: › Reduced labor and benefits per occupied room across all departments › Increased department profitability by 1%, adding 25 basis points to margins › Expanded portfolio through strategic space conversions | | Capital Structure Initiatives | • Successfully completed the Company's largest and most attractive financing in its history, resulting in a decline in overall borrowing costs • Reduced overall leverage ratio from 23% to 20%, representing the lowest level in over 10 years • Reduced net debt by $70 million | | Key Corporate Initiatives/Metrics | • Raised common dividend 28%, dividend fully covered by taxable income / or gains • Sold four hotels with an average age of 23 years for $71 million ($90 million including near-term foregone renovations) at an approximate 6% capitalization rate • Implemented a $25 million share repurchase plan for the first time in our history and repurchased 1.3 million common shares at an average price per share of $6.83 for total re-purchases of $9 million • Obtained city approval of our Home2 Portland development after years of efforts and now are working towards project commencement in 2026 | | Governance Performance Factors | • Participated in the Global Real Estate Sustainability Benchmark (“GRESB”) for the fourth time, scoring above average relative to our peers and improving our score year-over-year • Awarded GRESB’s “Green Star” • Received 98% support for our Say-on-Pay proposal from shareholders |
Annual cash bonus
Individual Performance Assessment For 2025, the Compensation Committee considered the achievement of individual goals established in early 2025. Each NEO has individual goals that were designed to be specific, measurable, relevant and time bound. These goals were set forth to enhance the execution of the Company’s strategic efforts in 2025 and each goal was given a weighting that took into consideration the significance of the goals. Based on a review of individual performance, each NEO received a score above target but less than maximum, ranging from 4.3 to 4.4. 2025 Cash Bonus Payouts The following table shows the threshold, target and maximum incentive cash bonus opportunities that were available to each executive officer for 2025 as a percentage of their base salary, as well as the actual bonus earned and the actual bonus as a percentage of target for the year ended December 31, 2025. Whether any of the threshold, target or maximum bonus levels were attained was determined by the Compensation Committee based on achievement of the criteria described above.
2025 Annual Cash Bonus Payout Levels
2025 Annual Cash Bonus Payout Levels
2025 Annual Cash Bonus Payout Levels
| Executive | Threshold | Target | Maximum | Actual | Payout | | Jeffrey H. Fisher | 100% | 175% | 250% | 92% | $1,082,000 | | Dennis M. Craven | 75% | 125% | 175% | 93% | $508,000 | | Jeremy Wegner | 50% | 100% | 150% | 95% | $320,000 |
Annual Equity Awards
Annual Equity Awards We have provided restricted share and LTIP unit awards pursuant to our Equity Incentive Plan in the past (see “Share and LTIP Unit Awards”). Time-based equity awards are designed to foster equity ownership by our NEOs in the Company and to align their interests with the long-term interests of our shareholders while also attracting and retaining key talent. Performance-based equity awards are tied to the performance of the Company and are designed to provide these key executives, who are primarily responsible for our growth and operations, with incentives to focus on achieving long-term goals and enhancing shareholder value. Payouts at performance levels in between the hurdles will be calculated by straight-line interpolation. As described below under "--LTIP Units", only Class A Performance LTIP units are used for performance-based equity awards. With respect to the 2025 compensation packages of the NEOs, the Compensation Committee, after consultation with the Compensation Consultant, recommended awarding the NEOs with a balanced equity compensation grant with (1) 40% of the award in the form of time-based LTIP units that will vest ratably over a three-year period and (2) 60% of the award in the form of performance-based LTIP units that may vest based on relative TSR performance versus the Lodging/Resort REIT constituents of the FTSE Nareit All REITs Index for the three-year period beginning on March 1, 2026 and ending on February 28, 2029. The 2025 Performance-Based LTIP Unit Awards, if earned, will vest at between 50% and 200% of target value as follows:
Annual Equity Awards
| | Relative TSR Hurdles (Percentile) | Payout Percentage | | Threshold | 25th | 50% | | Target | 55th | 100% | | Maximum | 80th | 200% |
Annual Equity Awards
Additionally, if our Company’s absolute TSR performance is negative over the performance period, to the extent our relative TSR performance exceeds target, the number of performance-based LTIP units that vest shall be reduced by 25 percentage points. TSR will be calculated to include share price appreciation plus dividends (and assumes the reinvestment of dividends). The initial share price used for calculating the Company’s TSR for the 2025 grant is $7.71, which was the closing price of our common shares the day prior to the grant date. Based upon the Compensation Consultant’s recommendations, which were based on the Company's overall performance in 2025, the Compensation Committee approved 2025 LTIP Unit Awards (i.e., time-based and performance-based) with grant date values for Messrs. Fisher, Craven and Wegner of $2,650,000, $1,300,000 and $800,000, respectively. These amounts represent no increase from the 2024 awards (granted in 2025). The following table sets forth the value of LTIP units that, based upon the Compensation Consultant's recommendations and approved by the Compensation Committee, were granted to each NEO under the 2025 LTIP Unit Awards. The number of 2025 Time-Based LTIP Unit Awards and target number of Performance-Based LTIP Unit Awards issued to each NEO were based on the grant date value shown below divided by $7.71, the closing price of our common shares on the NYSE on February 27, 2026, the day prior to the grant date:
Annual Equity Awards
| Name | Number of Time- Based LTIP Unit Awards | Grant Date Value of Time-Based LTIP Unit Awards(1) | Target Number of Performance-Based LTIP Unit Awards | Grant Date Value of Performance- Based LTIP Unit Awards(1) | Total Grant Date Value of All LTIP Unit Awards(1) | | Jeffrey H. Fisher | 137,484 | $1,060,000 | 206,226 | $1,590,000 | $2,650,000 | | Dennis M. Craven | 67,446 | $520,000 | 101,168 | $780,000 | $1,300,000 | | Jeremy Wegner | 41,505 | $320,000 | 62,257 | $480,000 | $800,000 |
Annual Equity Awards
(1) Estimated grant date value is based on $7.71, which was the closing price of our common shares on February 27, 2026. The Company will estimate the aggregate compensation cost to be recognized over the service period determined as of the grant date under FASB ASC Topic 718, including the effect of estimated forfeitures, and will calculate the value at the grant date based on the probable outcome of the performance. 2024 Awards (Granted in 2025) With respect to the 2024 compensation packages of the NEOs, the Compensation Committee, after consultation with the Compensation Consultant, recommended awarding the NEOs with a balanced equity compensation grant with (1) 40% of the award in the form of time-based LTIP units that will vest ratably over a three-year period and (2) 60% of the award in the form of performance-based LTIP units that may vest based on relative TSR performance for the three-year period beginning on March 1, 2025 and ending on February 28, 2028. The 2024 Performance-Based LTIP Unit Awards, if earned, will vest at between 50% and 200% of target value as follows:
Annual Equity Awards
| | Relative TSR Hurdles (Percentile) | Payout Percentage | | Threshold | 25th | 50% | | Target | 55th | 100% | | Maximum | 80th | 200% |
Annual Equity Awards
Additionally, if our Company’s absolute TSR performance is negative over the performance period, to the extent our relative TSR performance exceeds target, the number of performance-based LTIP units that vest shall be reduced by 25 percentage points. TSR will be calculated to include share price appreciation plus dividends (and assumes the reinvestment of dividends). The initial share price used for calculating the Company’s TSR for the 2024 grant is $8.08, which was the closing price of our common shares the day prior to the grant date. Based upon the Compensation Consultant’s recommendations, which were based on the Company's overall performance in 2024, the Compensation Committee approved 2024 LTIP Unit Awards (i.e., time-based and performance-based) with grant date values for Messrs. Fisher, Craven and Wegner of $2,650,000, $1,300,000 and $800,000, respectively. These amounts represent no increase from the 2023 awards (granted in 2024). The following table sets forth the value of LTIP units that, based upon the Compensation Consultant's recommendations and approved by the Compensation Committee, were granted to each NEO under the 2024 LTIP Unit Awards. The number of 2024 Time-Based LTIP Unit Awards and target number of Performance-Based LTIP Unit Awards issued to each NEO were based on the grant date value shown below divided by $8.08, the closing price of our common shares on the NYSE on February 28, 2025, the day prior to the grant date:
Annual Equity Awards
| Name | Number of Time- Based LTIP Unit Awards | Grant Date Value of Time-Based LTIP Unit Awards(1) | Target Number of Performance-Based LTIP Unit Awards | Grant Date Value of Performance- Based LTIP Unit Awards(1) | Total Grant Date Value of All LTIP Unit Awards(1) | | Jeffrey H. Fisher | 131,190 | $1,060,000 | 196,783 | $1,590,000 | $2,650,000 | | Dennis M. Craven | 64,359 | $520,000 | 96,535 | $780,000 | $1,300,000 | | Jeremy Wegner | 39,606 | $320,000 | 59,406 | $480,000 | $800,000 |
Annual Equity Awards
(1) Estimated grant date value is based on $8.08, which was the closing price of our common shares on February 28, 2025. The Company will estimate the aggregate compensation cost to be recognized over the service period determined as of the grant date under FASB ASC Topic 718, including the effect of estimated forfeitures, and will calculate the value at the grant date based on the probable outcome of the performance. 2023 Awards (Granted in 2024) With respect to the 2023 compensation packages of the NEOs, the Compensation Committee, after consultation with the Compensation Consultant, recommended awarding the NEOs with a balanced equity compensation grant with (1) 40% of the award in the form of time-based LTIP units that will vest ratably over a three-year period and (2) 60% of the award in the form of performance-based LTIP units that may vest based on relative TSR performance for the three-year period beginning on March 1, 2024 and ending on February 28, 2027. The 2023 Performance-Based LTIP Unit Awards, if earned, will vest at between 50% and 200% of target value as follows:
Annual Equity Awards
| | Relative TSR Hurdles (Percentile) | Payout Percentage | | Threshold | 25th | 50% | | Target | 55th | 100% | | Maximum | 80th | 200% |
Annual Equity Awards
TSR will be calculated to include share price appreciation plus dividends (and assumes the reinvestment of dividends). The initial share price used for calculating the Company’s TSR for the 2023 grant is $10.20, which was the closing price of our common shares the day prior to the grant date. Based upon the Compensation Consultant’s recommendations, which were based on the Company's overall performance in 2023, the Compensation Committee approved 2023 LTIP Unit Awards (i.e., time-based and performance-based) with grant date values for Messrs. Fisher, Craven and Wegner of $2,650,000, $1,300,000 and $800,000, respectively. These amounts represent no increase from the 2022 awards (granted in 2023). The following table sets forth the value of LTIP units that, based upon the Compensation Consultant's recommendations and approved by the Compensation Committee, were granted to each NEO under the 2023 LTIP Unit Awards. The number of 2023 Time-Based LTIP Unit Awards and target number of Performance-Based LTIP Unit Awards issued to each NEO were based on the grant date value shown below divided by $10.20, the closing price of our common shares on the NYSE on February 29, 2024, the day prior to the grant date:
Annual Equity Awards
| Name | Number of Time- Based LTIP Unit Awards | Grant Date Value of Time-Based LTIP Unit Awards(1) | Target Number of Performance-Based LTIP Unit Awards | Grant Date Value of Performance- Based LTIP Unit Awards(1) | Total Grant Date Value of All LTIP Unit Awards(1) | | Jeffrey H. Fisher | 103,923 | $1,060,000 | 155,883 | $1,590,000 | $2,650,000 | | Dennis M. Craven | 50,982 | $520,000 | 76,471 | $780,000 | $1,300,000 | | Jeremy Wegner | 31,374 | $320,000 | 47,059 | $480,000 | $800,000 |
Annual Equity Awards
(1) Estimated grant date value is based on $10.20, which was the closing price of our common shares on February 29, 2024. The Company will estimate the aggregate compensation cost to be recognized over the service period determined as of the grant date under FASB ASC Topic 718, including the effect of estimated forfeitures, and will calculate the value at the grant date based on the probable outcome of the performance. With respect to the 2022 compensation packages of the NEOs, the Compensation Committee, after consultation with the Compensation Consultant, recommended awarding the NEOs with a balanced equity compensation grant with (1) 40% of the award in the form of time-based LTIP units that will vest ratably over a three-year period and (2) 60% of the award in the form of performance-based LTIP units that may vest based on relative TSR performance for the three-year period beginning on March 1, 2023 and ending on February 28, 2026. The 2022 Performance-Based LTIP Unit Awards, if earned, would have vested at between 50% and 200% of target value as follows:
Annual Equity Awards
| | Relative TSR Hurdles (Percentile) | Payout Percentage | | Threshold | 25th | 50% | | Target | 55th | 100% | | Maximum | 80th | 200% |
Annual Equity Awards
TSR was calculated to include share price appreciation plus dividends (and assumes the reinvestment of dividends). The initial share price used for calculating the Company’s TSR for the 2022 grant is $12.21, which was the closing price of our common shares the day prior to the grant date. Based upon the Compensation Consultant’s recommendations, which were based on the Company's overall performance in 2022, the Compensation Committee approved 2022 LTIP Unit Awards (i.e., time-based and performance-based) with grant date values for Messrs. Fisher, Craven and Wegner of $2,650,000, $1,300,000 and $800,000, respectively. The following table sets forth the grant date value of LTIP units that, based upon the Compensation Consultant's recommendations and approved by the Compensation Committee, were granted to each NEO under the 2022 LTIP Unit Awards. The number of 2022 Time-Based LTIP Unit Awards and target number of Performance-Based LTIP Unit Awards issued to each NEO were based on the grant date value shown below divided by $12.21, the closing price of our common shares on the NYSE on February 28, 2023, the day prior to the grant date:
Annual Equity Awards
| Name | Number of Time- Based LTIP Unit Awards | Grant Date Value of Time-Based LTIP Unit Awards(1) | Target Number of Performance-Based LTIP Unit Awards | Grant Date Value of Performance- Based LTIP Unit Awards(1) | Total Grant Date Value of All LTIP Unit Awards(1) | | Jeffrey H. Fisher | 86,814 | $1,060,000 | 130,221 | $1,590,000 | $2,650,000 | | Dennis M. Craven | 42,588 | $520,000 | 63,882 | $780,000 | $1,300,000 | | Jeremy Wegner | 26,208 | $320,000 | 39,312 | $480,000 | $800,000 |
Annual Equity Awards
(1) Estimated grant date value is based on $12.21, which was the closing price of our common shares on February 28, 2023. In March 2026, it was determined that these performance-based units did not vest because the threshold for relative TSR performance for the three-year period beginning on March 1, 2023 and ending on February 28, 2026 was not met. Status of Outstanding Performance-Based Equity Awards Our executive compensation program includes performance-based shares or LTIP units in an effort to align the interests of our executive officers with those of our shareholders and to provide incentives for our executive officers to achieve both short-term and long-term business objectives. The Company’s long-term equity incentive plan is designed to correlate the incentives of our executive officers with total shareholder returns. Our executive officers’ actual long-term equity compensation earned over the relevant performance periods is dependent on the actual performance achieved for each multi-year performance award and may be substantially different from the values reflected in the Company’s summary compensation table. The following table shows the status of the performance-based awards granted for 2015 through 2024 and demonstrates our pay-for-performance alignment:
Annual Equity Awards
| Program | Performance Period | Performance Metric | Current Status(1) | | 2024 Award | March 2025 – February 2028 | Relative TSR vs. Nareit Lodging/Resort REITs(2) | Tracking to earn between Threshold and Target | | 2023 Award | March 2024 – February 2027 | Relative TSR vs. Nareit Lodging/Resort REITs(2) | Tracking to earn between Threshold and Target | | 2022 Award | March 2023 – February 2026 | Relative TSR vs. Dow Jones U.S. Hotel & Lodging REIT(2) | Completed - 0% earned | | 2021 Award | March 2022 – February 2025 | Relative TSR vs. Dow Jones U.S. Hotel & Lodging REIT Index | Completed - 63.9% of Target earned | | 2020 Award | March 2021 – February 2024 | Relative TSR vs. Dow Jones U.S. Hotel & Lodging REIT | Completed - 85.7% of Target earned |
Annual Equity Awards
| (1) As of March 16, 2026 or as of actual settlement date. | | (2) This award is also subject to an Absolute TSR performance modifier. |
Annual Equity Awards
The historical results of the performance-based awards program have demonstrated the goal to align the interests of the Company’s management with that of shareholders. Performance-based equity awards earned are dependent on relative performance measures. The following table illustrates the value of the performance-based awards granted, earned or forfeited for all performance-based awards granted since 2012 for which the applicable measurement period has ended (as of December 31, 2025) for each NEO. Cumulative performance-based equity compensation earned for the NEOs was approximately 76% of the grant date target value; NEOs have forfeited 24% of the grant date target value of all performance-based awards granted since 2012. Performance-based equity awards granted for 2024 and 2025 have not yet been earned as the measurement periods for those grants have not concluded and awards may be earned in the future. The value of the grant date target value of forfeited LTIPs below includes LTIP units granted as part of the 2015 Outperformance Plan of which no thresholds were met and thus all units were forfeited. Because each NEO can earn more or less than target amounts granted, the total granted will not be equal to the value earned and the value forfeited.
Annual Equity Awards
| Name | Value of Potential Performance LTIPs Granted | Value of Target Performance LTIPs Earned | Value of Target Performance LTIPs Forfeited | Percentage Forfeited | | Jeffrey H. Fisher | $11,830,500 | $9,633,117 | $2,878,743 | 24% | | Dennis M. Craven | $5,448,750 | $4,314,244 | $1,443,506 | 26% | | Jeremy Wegner | $1,990,750 | $1,870,777 | $260,175 | 13% | | Totals: | $19,270,000 | $15,818,138 | $4,582,424 | 24% |
LTIP Units
LTIP Units LTIP units are a special class of partnership interests in Chatham Lodging, L.P. (“our operating partnership”). The vesting period for any LTIP units, if any, will be determined at the time of issuance. LTIP units, whether vested or not, will receive the same monthly per-unit profit distributions as common units of our operating partnership, which profit distribution will generally equal per - our restricted share awards, which will generally receive full dividends whether vested or not. Initially, LTIP units will not have full parity with common units of our operating partnership with respect to liquidating distributions. Under the terms of the LTIP units, our operating partnership will revalue its assets upon the occurrence of certain specified events, and any increase in valuation from the time of grant until such event will be allocated first to the holders of LTIP units to equalize the capital accounts of such holders with the capital accounts of holders of common unit. Upon equalization of the capital accounts of the holders of LTIP units with the holders of common units, the LTIP units will achieve full parity with common units of our operating partnership for all purposes, including with respect to liquidating distributions. If such parity is reached, vested LTIP units may be converted into an equal number of common units at any time, and thereafter enjoy all the rights of common units, including exchange rights. However, there are circumstances under which such parity would not be reached. Until and unless such parity is reached, the value that an executive officer will realize for a given number of vested LTIP units will be less than the value of an equal number of our common shares. Class A Performance LTIP units are a specific class of LTIP units used for performance-based incentive plans and these Class A Performance LTIP Units have different rights. The vesting period for any Class A Performance LTIP units will be determined at the time of issuance. Vested Class A Performance LTIP units enjoy all the rights of vested LTIP units, including with respect to distributions and conversions. Prior to vesting, the NEOs will (i) not be entitled to vote the Class A Performance LTIP units and (ii) will be paid an amount that is 10% of distributions made on the common units of our operating partnership as and when our operating partnership makes such distributions. To the extent any of the Class A Performance LTIP units become vested, our operating partnership will pay to the NEO owning such vested units a special distribution on the date of vesting in an amount equal to (x) the aggregate amount of distributions that would have been received on such vested Class A Performance LTIP unit had the limitation described in (ii) above not applied, minus (y) the aggregate amount of distributions previously received pursuant to (ii) above on all Class A Performance LTIP units that were issued to the NEO on the date thereof, including any Class A Performance LTIP units that did not vest as of the date thereof. Other than the distributions described above, no cash amount will be paid with respect to any of the Class A Performance LTIP units that do not become vested.
Post-termination pay
Post-termination pay As described more fully under “Employment Arrangements” and “Potential Payments upon Termination or Change in Control” below, we have entered into employment agreements with each of our NEOs that provide these officers with compensation if they are terminated without “cause,” they leave the Company with “good reason” (each as defined in the applicable employment agreement) or their employment terminates in certain circumstances following a change in control. We believe these common protections promote our ability to attract and retain management and assure us that our NEOs will continue to be dedicated and available to provide objective advice and counsel notwithstanding the possibility, threat or occurrence of a change in their circumstances or in the control of the Company.
Summary Compensation Table
Summary Compensation Table
Summary Compensation Table
| Name and Principal Position | Year | Base Salary | Bonus | Share Awards(1) | Non-Equity Incentive Plan Compensation(2) | Change in Pension Value and Nonqualified Deferred Compensation Earnings | All Other Compensation(3) | Total | | Jeffrey H. Fisher | 2025 | $670,000 | --- | $2,854,168(4) | $1,082,000 | | $616,704 | $5,222,872 | | Chairman, President & Chief Executive Officer | 2024 | $650,000 | --- | $2,905,268(5) | $1,285,000 | --- | $418,294 | $5,258,562 | | | 2023 | $650,000 | --- | $3,131,381(6) | $1,118,530 | --- | $355,017 | $5,254,928 | | Dennis M. Craven | 2025 | $438,000 | --- | $1,400,170(4) | $508,000 | | $301,610 | $2,647,780 | | Executive Vice President & Chief Operating Officer | 2024 | $425,000 | --- | $1,425,432(5) | $600,000 | --- | $204,941 | $2,655,373 | | | 2023 | $425,000 | --- | $1,536,149(6) | $521,387 | --- | $166,869 | $2,649,405 | | Jeremy Wegner | 2025 | $335,000 | --- | $861,639(4) | $320,000 | | $172,596 | $1,689,235 | | Senior Vice President & Chief Financial Officer | 2024 | $325,000 | --- | $877,902(5) | $380,000 | --- | $116,543 | $1,699,445 | | | 2023 | $325,000 | --- | $945,323(6) | $317,052 | --- | $92,963 | $1,680,338 |
Summary Compensation Table
| 1) | For information regarding the Company’s assumptions made in the valuation of time-based and performance-based LTIP units, see Note 11 to the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Reflects grant date value of time-based and the target number of performance-based LTIP units or restricted common share awards to the NEOs and calculated in accordance with ASC Topic 718. The table below shows the dollar value of performance-based equity awards for each NEO assuming that (i) on the grant date of the awards the highest level of performance was probable, (ii) the maximum value of the awards would be earned and (iii) the value per common share upon maximum vesting is the closing price per common share on the NYSE on the date of grant. The values of the performance-based equity awards are dependent on the Company's performance over a three-year period and there is no assurance that the maximum value of the awards will be earned. |
Summary Compensation Table
| | Maximum Value of Performance-Based Equity Awards Assuming Highest Performance Level | | | | Year | Fisher | Craven | Wegner | | 2025 | $3,865,425 | $1,895,888 | $1,166,696 | | 2024 | $3,872,134 | $1,899,540 | $1,168,946 | | 2023 | $4,333,755 | $2,125,993 | $1,308,303 | | 2022 | $4,297,034 | $2,107,975 | $1,297,218 |
Summary Compensation Table
| (2) Beginning in 2017, upon the recommendation of the Compensation Committee, the Board adopted a formulaic cash bonus program tied to the achievement of corporate strategic performance goals, individual objectives and also a portion at the discretion of the Compensation Committee and the Board. Amounts for each year were awarded early in the following year. | | (3) Amounts reported in this column include distributions paid on unvested LTIP units and vested LTIP units and also life, health and dental premiums paid by the Company on behalf of the NEOs, and matching contributions to the 401(k) accounts. In 2023, Messrs. Fisher and Craven each received a matching contribution of $13,200 and Mr. Wegner received a matching contribution of $13,000. In 2024, Messrs. Fisher and Craven each received a matching contribution of $13,800 and Mr. Wegner received a matching contribution of $13,001. In 2025, Messrs. Fisher and Craven each received a matching contribution of $14,000 and Mr. Wegner received a matching contribution of $13,496. In 2023, Messrs. Fisher, Craven and Wegner received distributions on unvested and vested LTIP units in the amounts of $335,017, $166,869, and $92,963, respectively. In 2024, Messrs. Fisher, Craven and Wegner received distributions on unvested and vested LTIP units in the amounts of $381,874, $168,521, and $80,922, respectively. In 2025, Messrs. Fisher, Craven and Wegner received distributions on unvested and vested LTIP units in the amounts of $573,748, $258,654, and $130,144, respectively. | | (4) As part of our 2025 compensation, LTIP units were awarded to Messrs. Fisher, Craven, and Wegner with 40% of the award to be payable in time-based LTIP units and 60% of the award to be paid in the form of Class A Performance LTIP units. For the 2025 LTIP unit award grants, which were awarded in March 2026 and included in the table as 2025 compensation, Mr. Fisher was granted 137,484 time-based LTIP units, Mr. Craven was granted 67,446 time-based LTIP units, and Mr. Wegner was granted 41,505 time-based LTIP units. The 2025 LTIP unit awards also included performance-based LTIP units of 206,226 to Mr. Fisher, 101,168 to Mr. Craven, and 62,257 to Mr. Wegner. | | (5) As part of our 2024 compensation, LTIP units were awarded to Messrs. Fisher, Craven, and Wegner with 40% of the award to be payable in time-based LTIP units and 60% of the award to be paid in the form of Class A Performance LTIP units. For the 2024 LTIP unit award grants, which were awarded in March 2025 and included in the table as 2024 compensation, Mr. Fisher was granted 131,190 time-based LTIP units, Mr. Craven was granted 64,359 time-based LTIP units, and Mr. Wegner was granted 39,606 time-based LTIP units. The 2024 LTIP unit awards also included performance-based LTIP units of 196,783 to Mr. Fisher, 96,535 to Mr. Craven, and 59,406 to Mr. Wegner. | | (6) As part of our 2023 compensation, LTIP units were awarded to Messrs. Fisher, Craven, and Wegner with 40% of the award to be payable in time-based LTIP units and 60% of the award to be paid in the form of Class A Performance LTIP units. For the 2023 LTIP unit award grants, which were awarded in March 2024 and included in the table as 2023 compensation, Mr. Fisher was granted 103,923 time-based LTIP units, Mr. Craven was granted 50,982 time-based LTIP units, and Mr. Wegner was granted 31,374 time-based LTIP units. The 2023 LTIP unit awards also included performance-based LTIP units of 155,883 to Mr. Fisher, 76,471 to Mr. Craven, and 47,059 to Mr. Wegner. |
Grants of Plan-Based Awards
Grants of Plan-Based Awards The following table sets forth information with respect to plan-based awards granted during 2025 to the NEOs. Each dollar amount indicated under “Grant Date Value” is the full value of each restricted LTIP unit award computed in accordance with ASC Topic 718, which, with respect to the value of time-based awards is based on the closing price per common share of the Company on the date prior to grant, and with respect to the value of performance-based restricted LTIP awards, is based on the probable outcome of the performance conditions as of the grant date of the award. All grants of plan-based awards set forth below have been issued pursuant to and from the Company’s Equity Incentive Plan.
Grants of Plan-Based Awards
| | | | Estimated Future Payout Under Equity Incentive Plan Awards (# of LTIPs)(2) | | | | | Name | Grant Date | All Other Share Awards or Units(1) | Threshold(3) | Target(4) | Maximum(5) | Grant Date Fair Value | | Jeffrey H. Fisher | March 1, 2025 | 131,190 | | | | $976,054(6) | | | March 1, 2025 | | 98,932 | 196,783 | 393,566 | $1,843,857(7) | | Dennis M. Craven | March 1, 2025 | 64,359 | | | | $478,812(6) | | | March 1, 2025 | | 47,768 | 96,535 | 191,070 | $904,530(7) | | Jeremy Wegner | March 1, 2025 | 39,606 | | | | $294,669(6) | | | March 1, 2025 | | 29,703 | 59,406 | 118,812 | $556,634(7) |
Grants of Plan-Based Awards
| (1) Reflects time-based restricted LTIP unit awards granted in 2025 as part of our 2024 compensation program based on a grant date value of $8.08, the closing price of our common shares on the NYSE on the day prior to the grant date. These restricted LTIP unit awards vest ratably over the first three anniversaries of the date of grant on March 1, 2026, 2027 and 2028. | | (2) Reflects performance-based restricted LTIP unit awards that may be earned based on the attainment of certain performance thresholds. See “Description of Vesting Provisions for Certain Performance-Based Equity Awards—2024 Class A Performance-Based LTIP Unit Awards” for a description of the vesting and performance conditions. | | (3) Represents the minimum number of performance-based LTIP units that would be earned in the event that performance meets the threshold level under the award. In the event the performance under these awards fail to meet or exceed the threshold level of performance required, none of the performance-based awards will be earned. | | (4) Represents the number of performance-based LTIP units that would be earned in the event that performance meets the target level under the award. | | (5) Represents the number of performance-based LTIP units that would be earned in the event that performance meets the maximum level under the award. | | (6) The grant date value for each time-based LTIP unit was $7.44, calculated in accordance with ASC Topic 718 using a Monte Carlo approach. Information regarding the assumptions used to value the time-based LTIP Unit Awards is provided in Note 11 to our consolidated financial statements included in our Annual Report on Form 10-K filed for the year ended December 31, 2025. | | (7) The grant date value for each performance-based LTIP unit was $9.37, calculated in accordance with ASC Topic 718 using a Monte Carlo approach. Information regarding the assumptions used to value the performance-based LTIP Unit Awards is provided in Note 11 to our consolidated financial statements included in our Annual Report on Form 10-K filed for the year ended December 31, 2025. |
Discussion of Summary Compensation and Grants of Plan-Based Awards Tables
Discussion of Summary Compensation and Grants of Plan-Based Awards Tables Our executive compensation policies and practices, pursuant to which the compensation set forth in the Summary Compensation Table and the Grants of Plan-Based Awards Table was paid or awarded, are described above under “— Compensation Discussion and Analysis (“CD&A”).” The terms of employment agreements that we have entered into with our executives and the acceleration of vesting of equity awards under certain circumstances are described below under “— Employment Agreements” and “— Potential Payments upon Termination or Change in Control.”
Outstanding Equity Awards at Fiscal Year-End
Outstanding Equity Awards at Fiscal Year-End The following table sets forth information with respect to outstanding equity awards held by the NEOs as of December 31, 2025.
Outstanding Equity Awards at Fiscal Year-End
| Name | Grant Date | Number of LTIP Units That Have Not Vested (#) | Market Value of LTIP Units That Have Not Vested ($) (1) | Equity Incentive Plan Awards: Number of Unearned Shares or Other Rights That Have Not Vested (Unearned Performance-Based Shares or LTIP Units) (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares or Other Rights That Have Not Vested (Unearned Performance-Based Shares or LTIP Units) ($) (1) | | Jeffrey H. Fisher | March 1, 2023 | 28,938(2) | $197,068 | 130,221(3) | $886,805 | | | March 1, 2024 | 69,282(4) | $471,810 | 155,883(3) | $1,061,563 | | | March 1, 2025 | 131,190(5) | $893,404 | 196,783(3) | $1,340,092 | | Dennis M. Craven | March 1, 2023 | 14,196(2) | $96,675 | 63,882(3) | $435,036 | | | March 1, 2024 | 33,998(4) | $231,526 | 76,471(3) | $520,768 | | | March 1, 2025 | 64,359(5) | $438,285 | 96,535(3) | $657,403 | | Jeremy Wegner | March 1, 2023 | 8,736(2) | $59,492 | 39,312(3) | $267,715 | | | March 1, 2024 | 20,916(4) | $142,438 | 47,059(3) | $320,472 | | | March 1, 2025 | 39,606(5) | $269,717 | 59,406(3) | $404,555 |
Outstanding Equity Awards at Fiscal Year-End
| (1) For purposes of calculating the market value of restricted common shares or LTIP units that have not vested, the market value per restricted common share or LTIP unit is assumed to be $6.81, the closing sale price for our common shares on December 31, 2025. | | (2) This is the number of time-based LTIP units that have not vested from an initial award that vested or will vest ratably on March 1, 2024, 2025 and 2026. | | (3) This is the maximum number of performance-based LTIP units that may vest from this grant. Zero was earned on the performance award granted on March 1, 2023. | | (4) This is the number of time-based LTIP units that have not vested from an initial award that vested or will vest ratably on February 28, 2025, 2026 and 2027. | | (5) This is the number of time-based LTIP units that have not vested from an initial award that vested or will vest ratably on February 28, 2026, 2027 and 2028. |
Option Exercises and Shares Vested Table
Option Exercises and Shares Vested Table The following table summarizes vesting in 2025 of time-based and performance-based LTIP units previously granted to our NEOs. The Company has never granted option awards and has not granted restricted common shares to its NEOs since 2015. No restricted common shares vested in 2025.
Option Exercises and Shares Vested Table
| | Share/Unit Awards | | | Name | Number of Shares / Units Acquired on Vesting (1) (#) | Value Realized on Vesting ($) (2) | | Jeffrey H. Fisher | 163,168 | 1,318,397 | | Dennis M. Craven | 80,045 | 646,764 | | Jeremy Wegner | 49,259 | 398,013 |
Option Exercises and Shares Vested Table
| (1) Amounts include vested performance-based LTIP units. | | (2) For purposes of calculating the market value of the vested performance-based LTIP units that have vested, the market value per vested performance-based LTIP unit is assumed to be the $8.08 closing sales price per share of our common shares on the vesting date. |
Potential Payments upon Termination or Change of Control
Potential Payments upon Termination or Change of Control The following table and accompanying footnotes reflect the estimated potential amounts payable to Messrs. Fisher, Craven and Wegner under their employment agreements and the Company’s compensation and benefit plans and arrangements in the event the executive’s employment is terminated under various scenarios, including involuntary termination without cause, voluntary or involuntary termination with cause, voluntary resignation with good reason, involuntary or good reason termination in connection with a change in control and termination due to death and disability. The amounts shown below are estimates of the amounts that would be paid to Messrs. Fisher, Craven and Wegner upon termination of their employment assuming that such termination was effective on December 31, 2025. For purposes of calculating the acceleration of equity awards, we have assumed that all performance conditions have been met at the targeted level and the related performance-based LTIP units have vested. Actual amounts payable will depend upon compensation levels at the time of termination, the amount of future equity awards and other factors, and will likely be greater than amounts shown in this table. In addition, if there is a change in control and a termination of employment, the performance-based LTIP units not already vested will vest at the greater of relative performance target levels and relative maximum target levels.
Potential Payments upon Termination or Change of Control
| | Cash Severance Payment | Payment in Lieu of Medical/Welfare Benefits (present value) (4) | | Acceleration and Continuation of Vesting of Equity Awards (5) | Excise Tax Gross-up Payment(6) | Total Termination Benefits | | Jeffrey H. Fisher(1)(3) | | | | | | | | Involuntary Termination Without Cause (2) | $5,865,000 | $16,716 | | $4,850,743 | — | $10,732,459 | | Voluntary Termination or Involuntary Termination with Cause | — | — | | — | — | — | | Involuntary or Good Reason Termination in Connection With Change In Control (2) | $5,865,000 | $50,148 | , | $4,850,743 | — | $10,765,891 | | Death or Disability | — | — | | $4,850,743 | — | $4,850,743 | | Dennis M. Craven(1)(3) | | | | | | | | Involuntary Termination Without Cause (2) | $3,114,000 | $21,144 | | $2,379,625 | — | $5,514,769 | | Voluntary Termination or Involuntary Termination with Cause | — | — | | — | — | — | | Involuntary or Good Reason Termination in Connection With Change In Control (2) | $3,114,000 | $63,432 | | $2,379,625 | — | $5,514,769 | | Death or Disability | — | — | | $2,379,625 | — | $2,379,625 | | Jeremy Wegner(1)(3) | | | | | | | | Involuntary Termination Without Cause (2) | $1,430,000 | $21,144 | | $1,464,388 | — | $2,915,532 | | Voluntary Termination or Involuntary Termination with Cause | — | — | | — | — | — | | Involuntary or Good Reason Termination in Connection With Change In Control (2) | $1,430,000 | $42,288 | | $1,464,388 | — | $2,936,676 | | Death or Disability | — | — | | $1,464,388 | — | $1,464,388 |
Potential Payments upon Termination or Change of Control
| (1) The amounts shown in the table do not include accrued salary, earned but unpaid bonuses, accrued but unused vacation pay or the distribution of benefits from any tax-qualified retirement or 401(k) plan. Those amounts are payable to Messrs. Fisher, Craven, and Wegner upon any termination of employment, including an involuntary termination with cause and a resignation without good reason. |
Potential Payments upon Termination or Change of Control
| (2) Amounts in this row are calculated in accordance with the applicable employment agreement as described more fully under “— Employment Agreements”. | | (3) A termination of employment due to death or disability entitles Messrs. Fisher, Craven and Wegner to benefits under the Company’s life insurance and disability insurance plans. In addition, outstanding unvested restricted share awards and unvested LTIP unit awards immediately vest upon a termination of employment due to death or disability. | | (4) The amounts shown in this column are estimates of the annual premiums payable by the Company for health care, insurance and other benefits expected to be provided to Messrs. Fisher, Craven and Wegner. | | (5) Pursuant to SEC rules, for purposes of this table, the market value per common share and LTIP unit is assumed to be $6.81, the closing market price per common share on December 31, 2025. For the LTIP unit award grant agreements issued on March 1, 2023 and later, accelerated vesting is double-triggered: it requires both a "change in control" and a termination of employment. | | (6) The employment agreements with Messrs. Fisher, Craven and Wegner do not provide an indemnification or gross-up payment for the parachute payment excise tax under Sections 280G and 4999 of the Code. The employment agreements instead provide that the severance and any other payments or benefits that are treated as parachute payments under the Code will be reduced to the maximum amount that can be paid without an excise tax liability. The parachute payments will not be reduced, however, if the executive will receive greater after-tax benefits by receiving the total or unreduced benefits (after taking into account any excise tax liability payable by the executive). The amounts shown in the table assume that Messrs. Fisher, Craven and Wegner will receive the total or unreduced benefits. |
Pay Ratio Disclosure
Pay Ratio Disclosure The annual total compensation of our CEO for fiscal year 2025, as reported in the Summary Compensation Table included in this Proxy Statement, was $5,222,872. The median of the annual total compensation of all employees, excluding our CEO, for fiscal year 2025 was $139,156. As a result, we estimate that the annual total compensation of our CEO was 37.5 times that of the annual total compensation of the median employee for fiscal year 2025. We identified the median employee by total annual compensation for all employees, excluding our CEO, as of December 31, 2025. After identifying the median employee, we calculated annual total compensation for such employee using the same methodology used for calculating the total compensation of our named executive officers as set forth in the Summary Compensation Table included in this Proxy Statement.
PAY VERSUS PERFORMANCE
PAY VERSUS PERFORMANCE
Pay Versus Performance Tables
Pay Versus Performance Tables We are providing the following information about the relationship between “compensation actually paid” to our CEO and to our other NEOs and certain financial performance measures of Chatham Lodging Trust, including our company-selected measure, Adjusted FFO (funds from operations) per share. We believe that adjusting FFO to exclude certain recurring and non-recurring items provides useful supplemental information regarding our ongoing operating performance and that the presentation of AFFO, when combined with the primary GAAP presentation of net income (loss), more completely describes our operating performance. Compensation actually paid, as determined under SEC requirements, does not necessarily reflect the actual amount of compensation earned by or paid to our NEOs during a covered year or the way in which the Compensation Committee views compensation decisions. For further information regarding the Company's pay-for-performance philosophy, please refer to “Compensation Discussion and Analysis”.
Pay Versus Performance Tables
| | | | | | Value of Initial Fixed $100 | | | | | Year (a) | Summary Compensation Table Total for CEO ($) (1) | Compensation Actually Paid to CEO (2,3) | Average Summary Compensation Table Total for Non-CEO NEOs ($) (4) | Average Compensation Actually Paid to Non-CEO NEOs ($) (2,4,5) | TSR ($) (6) | Peer Group TSR ($) (7) | Net Income (Loss) ($ millions) (h) | Adjusted FFO Per Share ($) (8) | | 2025 | 5,222,872 | 2,576,704 | 2,168,507 | 1,120,026 | 70.85 | 115.35 | 15.30 | 1.02 | | 2024 | 5,258,962 | 3,238,397 | 2,177,054 | 1,388,170 | 51.82 | 92.90 | 4.04 | 1.09 | | 2023 | 5,235,398 | 2,544,424 | 2,165,651 | 1,132,996 | 61.32 | 94.80 | 2.49 | 1.19 | | 2022 | 5,392,984 | 6,072,343 | 2,246,593 | 2,465,739 | 68.25 | 76.50 | 9.87 | 1.19 | | 2021 | 4,737,901 | 5,577,635 | 1,941,792 | 2,146,031 | 75.88 | 90.32 | (18.85) | N/A |
Pay Versus Performance Tables
| (1) Amounts shown are as reported in the “Summary Compensation Table” for our CEO, Jeff Fisher, for the respective years shown. | | (2) The amounts reported represent the amount of "Compensation Actually Paid" as calculated in accordance with SEC rules. The dollar amounts do not reflect the actual amount of compensation earned by or paid during the applicable year. For information about the decisions made by our Board and the Compensation Committee in regard to the NEOs compensation for each fiscal year, please see the Compensation Discussion & Analysis sections of the proxy statements reporting pay for the applicable years. |
Pay Versus Performance Tables
| (3) The following table provides a reconciliation from the Summary Compensation Table Total for CEO to Compensation Actually Paid to CEO. |
Pay Versus Performance Tables
| | 2021 | 2022 | 2023 | 2024 | 2025 | | SCT Total for CEO ($) | $4,737,901 | $5,392,984 | $5,235,398 | $5,258,962 | $5,222,872 | | Less: Stock and Option Award Values Reported in SCT for the Covered Year | $(2,387,650) | $(3,099,049) | $(3,131,381) | $(2,905,668) | $(2,854,168) | | Plus: Fair Value for Stock and Option Awards Granted in the Covered Year | $0 | $0 | $0 | $0 | - | | Change in Fair Value of Outstanding Unvested Stock and Option Awards from Prior Years | $2,615,707 | $3,005,384 | $2,205,944 | $2,408,400 | $2,043,272 | | Change in Fair Value of Stock and Option Awards from Prior Years that Vested in the Covered Year | $58,163 | $424,650 | $(1,495,271) | $(1,199,041) | $(1,609,136) | | Less: Fair Value of Stock and Option Awards Forfeited during the Covered Year | $618,462 | $348,374 | $(270,266) | $(145,542) | $68,160 | | Less: Aggregate Change in Actuarial Present Value of Accumulated Benefit Under Pension Plans | $(64,948) | $0 | $0 | $(178,714) | (294,295) | | Plus: Aggregate Service Cost and Prior Service Cost for Pension Plans | $0 | $0 | $0 | $0 | $0 | | Compensation Actually Paid to CEO | $5,577,635 | $6,072,343 | $2,544,424 | $3,238,397 | $2,576,704 |
Pay Versus Performance Tables
| Awards' grant date fair values were calculated based on the Black-Scholes option pricing model as of date of grant. Adjustments have been made using award fair values as of each measurement date using the common share price as of the measurement date and updated assumptions (i.e., term, volatility, dividend yield, risk free rates) as of the measurement date. Performance-based restricted LTIP unit grant date fair values were calculated using the common share price as of date of grant assuming target performance. Adjustments have been made using the common share price and performance accrual modifier as of year-end and as of the date of vest. Time-vested restricted LTIP unit grant date fair values were calculated using the common share price as of date of grant. Adjustments have been made using the common share price as of year-end and as of each date of vest. |
Pay Versus Performance Tables
| (4) The amounts shown are the averages of the amounts of total compensation reported for the following individuals, who were our non-CEO NEOs for the years shown: | | 2021: Dennis Craven and Jeremy Wegner. | | 2022: Dennis Craven and Jeremy Wegner. | | 2023: Dennis Craven and Jeremy Wegner | | 2024: Dennis Craven and Jeremy Wegner | | 2025: Dennis Craven and Jeremy Wegner | | (5) The following table provides a recalculation from Average Summary Compensation Table Total for Non-CEO NEOs to Average Compensation Actually Paid to Non-CEO NEOs. |
Pay Versus Performance Tables
| Average SCT Total Compensation for Non-CEO NEOs | $1,941,792 | $2,246,593 | $2,165,651 | $2,177,054 | $2,168,507 | | Subtract: Stock and Option Award Values Reported in SCT for the Covered Year | $(946,050) | $(1,227,931) | $(1,240,736) | $(1,151,312 | $(1,130,905) | | Add: Fair Value for Stock and Option Awards Granted in the Covered Year | $0 | $0 | $0 | $0 | $0 | | Add (subtract): Change in Fair Value of Outstanding Unvested Stock and Option Awards from Prior Years | $945,493 | $1,190,818 | $874,053 | $954,280 | $809,607 | | Add (subtract): Change in Fair Value of Stock and Option Awards from Prior Years that Vested in the Covered Year | $24,781 | $143,851 | $(574,984) | $(475,092) | $(637,584) | | Add (subtract): Fair Value of Stock and Option Awards Forfeited during the Covered Year | $200,901 | $112,408 | $(90,988) | $(52,169) | $27,007 | | Add (subtract): Aggregate Change in Actuarial Present Value of Accumulated Benefit Under Pension Plans | $(20,886) | $0 | $0 | $(64,591) | $(116,607) | | Add (subtract): Aggregate Service Cost and Prior Service Cost for Pension Plans | $0 | $0 | $0 | $0 | $0 | | Average Compensation Actually Paid to Non-CEO NEOs | $2,146,031 | $2,465,739 | $1,132,996 | $1,388,170 | $1,120,026 |
Pay Versus Performance Tables
| Awards' grant date fair values were calculated based on the Black-Scholes option pricing model as of date of grant. Adjustments have been made using award fair values as of each measurement date using the common share price as of the measurement date and updated assumptions (i.e., term, volatility, dividend yield, risk free rates) as of the measurement date. Performance-based restricted LTIP unit grant date fair values were calculated using the common share price as of date of grant assuming target performance. Adjustments have been made using the common share price and performance accrual modifier as of year-end and as of the date of vest. Time-vested restricted LTIP unit grant date fair values were calculated using the common share price as of date of grant. Adjustments have been made using the common share price as of year-end and as of each date of vest. |
Pay Versus Performance Tables
| (6) In accordance with SEC rules, amounts in this column represent, as of December 31 of each year presented, the cumulative value of a $100 investment made on January 1, 2020 in our common shares. |
Pay Versus Performance Tables
| (7) In accordance with SEC rules, amounts in this column represent, as of December 31 of each year presented, the cumulative value of a $100 investment made on January 1, 2020 in the Dow Jones U.S. Hotel & Lodging REIT Index. | | (8) We have presented Adjusted FFO per Share because it is the only financial measure among the performance metrics used for determining compensation actually paid to our NEOs for 2025, 2024, 2023 and 2022, and for 2021 and 2020, the Compensation Committee and the Board determined not to employ any financial metric due to the uncertain financial impact of the pandemic. Adjusted FFO per Share, which is a non-GAAP financial measure, is calculated by dividing (a) adjusted funds from operations for the period presented (which is our net income or loss excluding items we believe do not represent costs related to hotel operations, including gains or losses from sales of real estate, impairment write-downs, the cumulative effect of changes in accounting principles, depreciation and amortization (excluding amortization of deferred financing costs), adjustments for unconsolidated partnerships and joint ventures, other charges, losses on the early extinguishment of debt) by (b) the weighted average number of our common shares outstanding for the period presented. We believe that Adjusted FFO per Share is a useful financial measure for evaluating the Company’s ongoing operating performance. |