Investigation Overview
An investigation on behalf of current long term investors in shares of BioMed Realty Trust, Inc. (NYSE:BMR) concerning possible breaches of fiduciary duties related to potential excessive compensation that was awarded to certain senior officers and executives at BioMed Realty Trust Inc. was announced.
The investigation by a law firm focuses on whether the directors and officers of BioMed Realty Trust, Inc. harmed the company by breaching their fiduciary duties to shareholders. In particular the investigation on behalf of current long term investors in BioMed Realty Trust (NYSE: BMR) focuses on possible shareholder claims that certain of BioMed Realty Trusts senior officers and executive were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation in past years.
BioMed Realty Trust CEOs compensation more than double from 2008 to 2010. His compensation rose from $2.27million in 2008 to $5.03million in 2010. The COOs pay increased from roughly $1.61million in 2008 to $2.78million in 2010.
However, BioMed Realty Trust's shareholders recently expressed their disdain for the executive pay packages by voting no on BioMed Realty Trust's say on pay provision. BioMed Realty Trust, Inc. received more than 50% opposition against its pay practices at its May 25 annual meeting, according to a company filing.
The investigation concerns possible claims that the prior compensation awarded at BioMed Realty Trust is improper based upon its current operating condition.
Despite that BioMed Realty Trusts annual Total Revenue rose from $266.11million in 2007 to $386.44million in 2010, its Net Income fell from $71.40million in 2007 to $38.82million in 2010.
Even though shares of BioMed Realty Trust, Inc. (Public, NYSE: BMR) rose from as low as $6.66 per share in March 09 to over $19 during 2010 and over $20 during May 2011, shares of BioMed Realty Trust, Inc. (Public, NYSE:BMR) fell before that from as high as over $30 during 2007 and over $28 during September 08.
The investigation seeks to determine whether certain senior officers and executives at BioMed Realty Trust, Inc. were awarded salaries, bonuses, stock options and other forms of long-term, incentive or retirement compensation that were excessive or unwarranted based on the BioMed Realty Trusts performance as compared to what senior officers and executives at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting.
Finally the investigation focuses also on possible shareholder claims that would allow NYSE:BMR stockholders to more efficiently influence or control future compensation decisions at BioMed Realty Trust, Inc.