Key Issues for REIT Board Management
July 19, 2019 | Sarah Borchersen-Keto | Nareit
Walt Rakowich has many ideas about what constitutes good governance—the all-important “G” in a company’s ESG practices. In essence, he says it’s about corporate leadership putting the greater good ahead of the individual. With that core concept in place, much can be achieved—and he should know. Becoming CEO of ProLogis, at the height of the economic downturn in 2008, Rakowich was instrumental in restoring the company’s battered finances, enabling it to merge with AMB Property Corp. in 2011 and making Prologis (NYSE: PLD) the industrial warehouse giant it is today.
Rakowich, who sits on the boards of three S&P 500-listed REITs, Host Hotels & Resorts, Inc. (NYSE: HST), Iron Mountain Inc. (NYSE: IRM), and Ventas, Inc. (NYSE: VTR), recently shared his views on the key issues that REITs must address to remain top performers.
How important is it for management to build trust with their boards?
Without trust you have nothing. I believe it’s fostered by an environment of transparency—an environment where there is constant communication during and in-between board meetings; brutal honesty about good and bad news; and a unilateral commitment to do the right thing for the organization over anything else.