Digital Realty Trust board approves 2025 carried interest plan for executives

Digital Realty Trust, Inc. (NYSE:DLR) announced Wednesday that its board of directors has approved the Digital Realty 2025 Carried Interest Plan. The plan provides for carried interest and appreciation interest awards to certain employees, including named executive officers, tied to the company’s strategic capital ventures.

According to a statement included in a regulatory filing, the plan is designed to attract, retain, and incentivize executives and employees by granting them interests in special purpose entities that participate in the profits of specific investment vehicles. The plan is administered by the company’s Talent and Compensation Committee, which determines eligibility, award amounts, and vesting schedules.

Under the plan, awards consist of either a carried interest or a notional appreciation interest. Carried interest awards entitle recipients to a share of profits from company investment vehicles, while appreciation interest awards track the value of corresponding carried interest awards. No more than 50% of the aggregate carried interest or promote distributions from any vehicle may be paid to participants under the plan.

Awards vest upon meeting both service and performance conditions. The service condition is satisfied in 25% increments on each of the first four anniversaries of the award’s commencement date, contingent on continued employment. The performance condition is met when specific investment hurdles are achieved.

The plan includes provisions for accelerated vesting in cases such as termination without cause, resignation for good reason, retirement, death, or disability. In such events, participants may receive pro-rata or full vesting of awards, subject to certain requirements. If a participant is terminated for cause or resigns without good reason, all awards are forfeited.

Payments for fully vested carried interest awards are made in cash. Appreciation interest awards may be paid in cash, fully vested company shares, or units in the company’s operating partnership, as determined by the plan administrator. Individual payments are capped at three times the participant’s combined annual base salary, target bonus, and target equity award value in any calendar year.

On Wednesday, the company granted carried interest awards to President and CEO Andrew P. Power (4.5%) and CFO Matthew Mercier (1.5%) with respect to designated investment vehicles. No appreciation interest awards were granted to named executive officers at this time.

This report is based on a press release statement and information disclosed in a filing with the Securities and Exchange Commission.

In other recent news, Digital Realty Trust reported second-quarter 2025 earnings that significantly surpassed market expectations. The company announced an earnings per share of $2.94, which was a remarkable 617.07% higher than the forecasted $0.41. Revenue also exceeded projections, reaching $1.49 billion compared to the expected $1.44 billion. Analysts from BMO Capital have reiterated an Outperform rating with a price target of $195, highlighting a positive outlook for AI developments despite recent pressures on data center stocks. Citizens JMP also maintained a Market Outperform rating and a price target of $220, raising their 2025 and 2026 AFFO per share estimates due to the company’s strong second-quarter performance and continued leasing momentum. These developments reflect ongoing confidence in Digital Realty Trust’s financial health and strategic positioning.

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