Environmental, Social and Governance

A truly sustainable business model

Omega's Environmental, Social, Governance Report

A truly sustainable business model

Omega's Environmental, Social, Governance Report

A truly sustainable business model

Omega's Environmental, Social, Governance Report

A MESSAGE FROM OUR CEO

Advancing and refining our environmental, social and governance efforts.

I am pleased to welcome you to Omega Healthcare Investors’ sustainability website. With this website, we aim to provide a comprehensive review of our efforts to enhance our environmental stewardship, social commitment, and corporate governance.

A Message from Our CEO

We have consistently valued long-term investing through our history, and this applies to how we run our business just as it does to how we allocate capital.

Taylor Pickett
President & Chief Executive Officer

ENVIRONMENTAL, SOCIAL, GOVERNANCE

Continuously advancing and refining our ESG efforts.

We invest in our team members, we invest in our corporate infrastructure, we invest in our communities, and we invest in our environment.
The Company

ESG Program at a Glance

Managing Our Footprint

56%

Since 2015, 56% of Omega’s development capital has been allocated to facilities built to LEED certification standards.1

~5%

~5% of annualized rent and ~5% of gross real estate investment balance were located in these defined at-risk geographies.2

25%

~24% and ~33% reduction in corporate office electricity and water usage intensities, respectively.3

Supporting Our People

Money icon
Regular pay equity reviews to ensure women and men, on average, at various roles and levels of the Company, are paid equitably for their roles and contributions to our success.

100%

100% participation in the 2022 annual employee engagement survey in which results are shared with our board of directors, the management team, and all employees.
People Icon
Signatory to the CEO Action for Diversity and Inclusion Pledge.
Gender icon
In 2022, Omega was included in the Bloomberg Gender-Equality Index (GEI) for the third consecutive year - one of only 414 companies worldwide, and one of 15 US REITs, to be included in the 2022 index.

Investing in Our Community

$500,000

Established “The Omega Healthcare Investors Business Scholarship Fund”, an undergraduate scholarship fund at a local historically Black university. Omega funded a $100,000 per year commitment for 5 years.
sponsor icon - person in front of board
Sponsoring Administrators in Training (AITs), from under-represented groups, at select facilities in partnership with operators
handshake icon
Invested in local charitable partnerships to improve economic, health and social outcomes in the local Baltimore, Maryland community.

Protecting Our Stakeholders

38%

38% of our Board are women.4

>95%

>95% support for Say on Pay Advisory Vote each of the last three years.
Director icons
Code of Business Conduct and Ethics applies to our directors, officers and employees.
  1. From 2015 through 2022.
  2. Our corporate goal is to derive less than 10% of rental income from properties in FEMA designated 100-year flood zones.
  3. 2022 compared to a 2019 baseline.
  4. As of June 5, 2023.
The Company

About Us

Omega Healthcare Investors, Inc. (Omega, we, our, or us) is a triple-net, equity Real Estate Investment Trust (REIT) (NYSE: OHI) that supports the goals of Skilled Nursing Facility (SNF) and Assisted Living Facility (ALF) operators with financing and capital. We’re partners with 65 of the most future-focused, growth-oriented operators in the U.S. and U.K., accelerating their growth strategies with a $1.45 billion unsecured credit facility and proven access to the largest public equity and debt markets in the world.

This document may include forward-looking statements. For additional information and disclosures, see the “Forward Looking Statements and Cautionary Language” section of our latest earnings press release at www.omegahealthcare.com.

Properties (#)1[IF-RE-000.A]
Topics 2020 2021 2022
Properties (#)1
[IF-RE-000.A]
Skilled Nursing / Transitional Care 813 764 733
Senior Housing 132 155 191
Total 945 919 924


Leasable floor area, by property subsector
Topics 2020 2021 2022
Leasable floor area, by property subsector
[IF-RE-000.B]
Skilled Nursing / Transitional Care 32,871,692 28,925,956 27,775,619
Senior Housing 3,508,606 5,234,008 5,181,696
Total 36,380,298 34,186,964 32,957,315

Percentage of indirectly managed assets, by property subsector2 (Equity Healthcare) [IF-RE-000.C]
Topics 2020 2021 2022
Percentage of indirectly managed assets, by
property subsector2

(Equity Healthcare)
[IF-RE-000.C]
100% 100% 100%

Average occupancy rate, by property subsector3 [IF-RE-000.D]
Topics 2020 2021 2022
Average occupancy rate, by property subsector3
[IF-RE-000.D]
Skilled Nursing / Transitional Care 77.8% 73.8% 76.1%
Senior Housing 81.9% 82.0% 84.6%
Total 78.1% 74.5% 77.0%

  1. This includes the number of distinct real estate property or building assets. This is aligned with the 2018 GRESB Real Estate Assessment Reference Guide.
  2. The definition of “indirectly managed assets” is solely based on the landlord/tenant relationship in which the tenant should be assumed to have operational control. This is aligned with the 2018 GRESB Real Estate Assessment Reference Guide.
  3. Based on available (operating) beds.
The Company

Management and Oversight

In connection with internal assessments and shareholder engagement, we prioritize environmental, social and governance initiatives that matter most to our business and shareholders. Our Nominating and Corporate Governance Committee has been charged with primary oversight of our sustainability efforts.

The Company has established an ESG Steering Committee, with senior representation from all divisions of the company, that is responsible for advancing the Company’s governance, sustainability, and diversity & inclusion programs. The Nominating and Corporate Governance Committee exercises oversight of the ESG Steering Committee. Management reports to the board on a quarterly basis, addressing policy and disclosure changes in the quarter including environmental and climate-related risks and opportunities. Omega is committed to creating environmental awareness and consulting with stakeholders.

The Company

Our Approach to ESG

Omega Healthcare Investors’ ESG program focuses on four pillars: Managing Our Footprint, Supporting Our People, Investing in Our Community, Protecting Our Stakeholders.

four block with the four approaches to esg

We manage our footprint with a focus on an efficient corporate headquarters building, proactive green strategies, and by supporting tenant programs.

We support our people by driving employee development and growth and fostering diversity and inclusion throughout the organization.

We invest in our communities with a focus on supporting communities to prosper and grow through building community spaces, creating resident interaction, community engagement, charitable giving, and collaborating with partners.

We protect our stakeholders with a clear focus on accountability, board oversight, compensation practices and business risk oversight.

The Company

ESG Tools

Although an ongoing journey, the content for this report was prepared with an eye towards the Sustainability Accounting Standards Board (SASB) standards for the infrastructure sector. In addition, we provide disclosure of additional environmental, social, and governance (ESG) metrics that we believe are relevant to our business and identify where our efforts and programs are aligned with the United Nations Sustainable Development Goals (UN SDGs). The United Nations adopted the 17 Sustainable Development Goals (SDGs) to create a shared pathway for a sustainable world.

Sustainable development goals logoValue reporting foundation s a s b standards logo

Omega Healthcare Investors will seek to monitor the relevancy and importance of these topics to our business and stakeholders and will evaluate what our stakeholders consider to be material ESG issues, which may change over time. As we identify emerging ESG topics, trends, risks, and opportunities, Omega will continue to engage with its key stakeholders with the goal of addressing the most strategic and impactful topics to our business and the communities in which we operate.

United Nations Sustainable Development Goals

Omega has chosen the SDGs that most directly apply to our business. These SDGs help us shape our policies and long-term goals.

Target
  • Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all
  • By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being
Omega’s Activities
  • Skilled Nursing Facilities still fulfill an essential need within the healthcare continuum, with the majority of residents at our skilled nursing facilities being funded through Medicaid, which covers low-income individuals
  • Many of our facilities care for patients with cognitive issues, including memory and mental health disorders
Target
  • By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship
  • By 2030, eliminate gender disparities in education and ensure equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities, indigenous peoples and children in vulnerable situations
Omega’s Activities
  • Community: Omega invested in several local charitable partnerships to improve economic, health and social outcomes in the local Baltimore, Maryland community, with a focus on the local Black and other historically under-represented communities
  • Industry: Omega provides grants for operator training programs that focus on development of talent from historically under-represented communities and has initiated a multi-year scholarship and mentorship program at a local historically Black university as well as an internship program, with a focus on under-represented communities
Target
  • Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life
Omega’s Activities
  • Omega has expanded its recruitment practices to reach more diverse candidates for employment and Board positions and is developing an internship program with a focus on increasing diversity in the pipeline of eligible employees. At the executive level, one of Omega’s four NEOs is a woman and brings racial diversity to the team, and at the senior management level, 25% are women and 25% bring racial diversity to the team
Target
  • By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
Omega’s Activities
  • Omega regularly conducts pay equity reviews to ensure women and men, on average, at various roles and levels of the Company, are paid equitably for their roles and contributions to our success. When a difference is uncovered in total compensation (across base, bonuses and equity), we seek to remediate the gap in order to achieve pay parity
Target
  • Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all
Omega’s Activities
  • Since 2015, Omega has committed over $9.9 billion to acquire, develop and enhance Skilled Nursing Facilities which primarily focus on the wellbeing of the old and frail
  • The majority of our operator’s reimbursement is from Medicaid, which addresses the needs of low-income individuals
Target
  • By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
Omega’s Activities
  • Omega implemented a comprehensive Human Rights Policy shaped by UN’s “Universal Declaration on Human Rights” & ILO’s “Declaration on Fundamental Principles and Rights at Work"
  • Through its own hiring, training, mentoring, sponsorship and pay equity review programs, Omega is striving to promote inclusion and equality within the company and industry
  • We have committed as a Founding Donor to support NAREIT’s Dividends Through Diversity, Equity & Inclusion program, which supports charitable and educational organizations and initiatives that will help create a more diverse, equitable, and inclusive REIT and publicly traded real estate industry
The Company

ESG Archive

Managing Our Footprint

Corporate Headquarters

Our focus on environmental responsibility is also demonstrated by how we manage our day-to-day activities at our corporate headquarters in Hunt Valley, Maryland, which represents our entire controlled corporate real estate. Our leased space of approximately 27,000 square feet has earned the LEED Silver Certification in Existing Buildings: Operations & Maintenance. We promote energy efficiency with features such as an automatic lighting control system, water efficient features, low-VOC paints and floor adhesives, and a single-stream recycling service. The information below relates solely to our leased corporate headquarters real estate.

Corporate Environmental Efforts1

Corporate Environmental Efforts1
Topics 2020 2021 2022
Scope 1 (metric tons of CO2e) 0 0 0
Scope 2 (metric tons of CO2e)2 215 202 180
Scope 1 & 2 carbon footprint target By the end of 2023, we intend to achieve carbon neutrality for our Scope 1 and Scope 2 emissions. As a growing company, this will encompass the expected increase in square footage of our controlled real estate in the coming years.
Total Corporate Headquarters Electricity Usage (Kwh) 642,858 691,137 565,840
Electricity Usage (Kwh) from Renewable Sources (% of Total Usage)3 64,286 (10.0%) 65,658 (9.5%) 54,321 (9.6%)
Electricity Usage (Kwh) Per Employee3 12,857 13,291 10,288
Electricity Usage (Kwh) Per Square Foot4 23.7 25.4 20.8
Total Corporate Headquarters Water Usage (ft3) 359 372 344
Water Usage (ft3) Per Employee4 7 7 6
Water Usage (ft3) Per Square Foot5 .01 .01 .01
Total Corporate Headquarters Waste Generation (metric tons)5 n/a 402 400
Waste Recycled (metric tons) n/a 67 67
Landfill Diversion Rate (%) n/a 17% 17%
Waste Generated (metric tons) Per Employee n/a 6.4 6.1
Waste Generated (metric tons) Per Square Foot n/a .01 .01
Environmental fines (#; $) 0; $0 0; $0 0; $0

Corporate Environmental Practices and Policy

The eco-friendly strategies incorporated at our corporate office building include:


  • Water efficient restroom fixtures, such as dual flush toilets, water-free urinals and water conserving aerators, which reduced the building’s water usage by more than 41%
  • A single-stream recycling service, which is sorted, processed and recycled professionally, reducing the risk of incorrect assignment of waste products
  • Use of green cleaning products, sustainable cleaning equipment, and other environmentally friendly cleanliness practices
  • Lighting that includes occupancy sensors that reduce energy consumption
  • 100% irrigation reduction
  • Lighting retrofit using reduced mercury lamps
  • Use of paints and floor adhesives meeting low-VOC requirements set by LEED
  • An HVAC system which includes Air Handler Units equipped with economizer condenser coils which reduces energy costs during cooling, as well as a night set-back mode whereby interior temperatures will seasonally vary outside the target temperature in order to reduce costs when the building is unoccupied.

See our Corporate Environmental Policy for more information.

  1. All information below is based on estimates based on available information from third parties and application of SASB standards. Omega does not guarantee accuracy or completely of this information and such information is subject to limitations inherent to estimates and third party data.
  2. Estimated based on emissions methodology in carbon dioxide equivalents as per the United States Environment Protection Agency (EPA) Emissions & Generation Resource Integrated Database (eGRID).
  3. Renewable electricity metrics are based on the average renewable energy mix of the State of Maryland, where our corporate headquarters is located.
  4. Total average headquarter employees were 49, 52, and 55 for 2020, 2021 and 2022, respectively.
  5. Total corporate headquarters square footage is 27,176.
  6. Waste generation is calculated based on Omega’s pro-rata share of headquarters occupied by the Company
Managing Our Footprint

Operator Sustainability Initiatives

Discussion of approach to measuring, incentivizing, and improving sustainability impacts of tenants

As a triple-net landlord, our third-party operators have control and responsibility for the properties in our real estate portfolio on a day-to-day basis. While our ability to mandate environmental changes to their operations is limited, our tenants are contractually bound to preserve and maintain our properties in good working order and condition. In connection with this, they are generally required to meet or exceed annual expenditure thresholds on capital improvements and enhancements of our properties. Compliance with this requirement alone, in certain cases, produces improvements in the environmental performance of our properties and reduces energy usage, water usage, and direct and indirect greenhouse gas (GHG) emissions.

Our asset management team seeks to monitor and enforce these contractual requirements, through both Omega personnel and third-party inspectors periodically visiting our properties. These visits focus on ensuring that our properties are being suitably maintained and sometimes result in corrective repair and replacement recommendations. We require that these corrections and replacements comply with local building codes, which often results in the incorporation of sustainable improvements into our properties.

Omega has implemented a capital expenditure sustainability initiative to encourage operators to invest in financially beneficial and environmentally enhancing investment projects. The idea is to financially incentivize operators, through discounts on our standard cost of capital, to invest in sustainable capital projects that provide a favorable return on investment while reducing the environmental footprint of these operations. We have engaged third party consultants to provide recommendations as to what investments provide this combination of economic and environmental benefit. However, we have also encouraged our operators to propose their own suggestions, which we will evaluate based on the extent of the environmental impact. Finally, given the broad geographic dispersion and general lack of direct competition that exists among many of our operators, we are encouraging them to share environmental best practices. Further, we expect to showcase some of these environmental investments at our operator conference, which is generally held biennially, to highlight ways in which financial and environmental efforts can be aligned.

Discussion and analysis on use of Phase I and Phase II Environmental Site Assessments (ESAs)

As a triple-net landlord, our third-party operators have control and responsibility for the properties in our real estate portfolio. Our due diligence on all real estate acquisitions includes Phase I and, where appropriate, Phase II environmental assessments (ESAs) as part of our analysis to understand the environmental condition of the property, including whether there is indication of any release of hazardous substances, chemical or waste storage, or other environmental concerns or risks, and to determine whether the property meets certain environmental standards. In the event that our due diligence uncovers environmental contamination, we work with the sellers and/or operators to mitigate any issues.

Because our portfolio is primarily comprised of SNFs, the operations in our facilities are also subject to stringent health regulation and oversight by state regulators, which lowers the risk of environmental contamination onsite.

Year 2020 2021 2022
Percentage of leases or agreements that contain provisions requiring compliance with applicable health and safety laws 100% 100% 100%
Developments built to LEED/green certification standards (%) 39% 80% 81%

All of our leases or agreements contain provisions requiring compliance with applicable health and safety laws. In addition, since 2015, 56% of Omega’s development capital has been allocated to facilities built to LEED certification standards.

Physical Climate Risk

Discussion and analysis of physical climate risk to properties and insurance requirements

We regularly monitor the impact of significant natural disasters on our properties. In most leases our tenants are required to carry full replacement cost coverage on all improvements located on our properties. For those properties located in a nationally designated flood zone, we typically require our tenants to carry flood insurance pursuant to the federal flood insurance program. For those properties located in an area of high earthquake risk, we typically require our tenants to carry earthquake insurance above what is traditionally covered in an extended coverage policy.

Area of properties/facilities located in FEMA designated 100-year flood zones, by property subsector1

[IF-RE-450a.1]

For 2022, approximately 6% of properties were located in 100 Year Flood Zones. Of these properties, 94% are SNFs. Put another way, in 2022, about 5% of annualized rent and about 5% of gross real estate investment balance were located in these defined at-risk geographies.

Our corporate goal is to derive less than 10% of rental income from properties in FEMA designated 100-year flood zones.

Description of climate change risk exposure analysis, degree of systematic portfolio exposure, and strategies for mitigating risks

[IF-RE-450a.2]

During the due diligence process, we seek to evaluate the risk of physical, natural disaster or extreme weather patterns on the properties we are looking to acquire and whether there are specific risks to that property or region that need to be mitigated. Through insurance and property- specific safety measures - for example, hurricane shutters, earthquake-compliant construction, elevated generators - we seek to ensure that the real estate is both protected and fit for purpose.

  1. 100-year flood zones are defined as land areas subject to a one percent or greater chance of flooding in any given year. For properties located in the U.S., 100-year flood zones shall include those land areas designated by the U.S. Federal Emergency Management Agency (FEMA) as special flood hazard areas (SFHA).
Managing Our Footprint

Pre-acquisition Due Diligence

As a triple-net landlord, our third-party operators have control and responsibility for the properties in our real estate portfolio. Our due diligence on all real estate acquisitions includes Phase I and, where appropriate, Phase II environmental assessments (ESAs) as part of our analysis to understand the environmental condition of the property, including whether there is indication of any release of hazardous substances, chemical or waste storage, or other environmental concerns or risks, and to determine whether the property meets certain environmental standards. In the event that our due diligence uncovers environmental contamination, we work with the sellers and/or operators to mitigate any issues.

Year 2020 2021 2022
Number of Phase II ESAs conducted 0 0 2
Supporting Our People

Team Member Development & Support

Human Capital Support & Development

The success we have achieved as a company is based on the focused passion and dedication of our people. Our employees’ commitment to Omega provides better service to our tenants and stakeholders, creates an inclusive and collegial working environment and generates long-term value for our shareholders and the communities which we serve. See our Human Capital Support & Development Policy for more information.

Employee Training & Professional Development

All senior management receive one-on-one coaching from both the VP, HR and an external consultant who specializes in the executive coaching discipline. In 2022, all senior management participated in an offsite leadership summit. The event consisted of engaging leadership topic sessions delivered by subject matter experts.

We encourage employees to keep current in their professions by either acquiring the appropriate certification (CPA, SHRM-SCP, etc.) and/or taking the appropriate classes/training to attain CPEs, CLEs, PDCs, etc. We also offer an annual tuition reimbursement program and reimbursement of certain professional development expenses. All employees are allotted $5,000 a year to seek out professional development classes or seminars to enhance their skills and knowledge.

All employees participate in our annual performance review process that consists of self-evaluation, supervisor evaluation and a discussion on overall performance along with potential career pathing.

Compensation & Benefits

Omega provides an extremely competitive benefits program including Medical, Dental and Vision coverage, a nondiscretionary 401k with an employer match, 12 weeks of paid parental leave to all employees upon the birth or adoption of a child, Flexible Spending Accounts, Employer-funded life and disability insurance, hospital indemnity, supplemental long-term disability insurance, generous personal time off, flexible working hours and location, mother’s room (breast-feeding/ lactation facility), and corporate discounts.

Healthcare insurance covers fertility services, contraception and gender reassignment services. To promote health and wellbeing, we also offer free access to our headquarters’ gym, which is coupled with annual exercise and health drives. Every employee has a standing desk and an ergonomic chair.

To attract, retain and award our talent, Omega’s Employee Stock Purchase Program allows all eligible employees, with the exception of our NEOs, to buy company stock, subject to the terms of the plan, at a discount up to the lower of 20% of their salary or $25,000.

Supporting Our People

Diversity, Equity & Inclusion

Diversity & inclusion Initiatives1

Omega has a long-standing commitment to being an equal opportunity employer and has implemented Equal Employer Opportunity policies. In 2021, Omega conducted diversity and inclusion training for our Board members and employees, with 100% completion.

Bloomberg gender-equality index 2021 logoCEO action for diversity and inclusion

In 2020, our CEO, C. Taylor Pickett, reinforced our diversity and inclusion commitment by signing the CEO Action for Diversity and Inclusion Pledge, one of the largest CEO-driven business commitments to act on and advance diversity, equity and inclusion in the workplace. In addition, in 2020, the Company implemented several initiatives to further its commitment to diversity and inclusion within its workforce and Board, in its local community and in the industry in which it operates, particularly in light of the racial and social justice challenges that were highlighted in 2020 and during the pandemic.

Omega has expanded its recruitment practices to reach more diverse candidates for employment and Board positions and developed an internship program with a focus on increasing diversity in the pipeline of eligible employees. At the executive level, one of Omega’s four NEOs is a woman and brings racial diversity to the team, and at the senior management level, 25% are women and 25% bring racial diversity to the team. We generally report to the full board quarterly on our workforce diversity efforts. In addition, in 2020 we expanded our holiday calendar to include Juneteenth as a paid holiday and encouraged team members to utilize the additional time to learn more about the holiday.

Equitable Compensation

Omega regularly conducts pay equity reviews as we seek to ensure women and men, on average, at various roles and levels of the Company, are paid equitably for their roles and contributions to our success. When a difference is uncovered in total compensation (across base, bonuses and equity), the Company seeks to remediate the gap in order to achieve pay parity.1

Average Pay Percentage
2022 Compensation1 Ratio: Male / Female
Senior Management Level 1 / 0.82
Management Level 1 / 1.05
All Other Employees 1 / 0.88
Average Pay Percentage Difference
2022 Compensation1 Ratio: White / Non-White
Senior Management Level 1 / 0.82
Management Level 1 / 0.91
All Other Employees 1 / 1.00

Employee Demographic2

Employee Demographic2
Gender Male Female White Non-White
Senior Management (n:8) 75% 25% 75% 25%
Management (n:17) 71% 29% 88% 12%
All Other Employees (n:27) 33% 67% 85% 15%

Age Demographic2

Age Demographic2
Year 2020 2021 2022
< 29 12% 7% 12%
20 to 49 50% 54% 56%
> 50 38% 39% 33%
Number of Employees 50 54 52
  1. Ratio of base salaries
  2. As of December 2023.
Supporting Our People

Engagement & Retention

Employee Engagement

Omega conducts an annual employee engagement survey. We share the results with our board of directors, and the management team.

The management team uses the employee engagement survey and its participation rates and overall score to help shape and improve elements of the business, correlated with employee needs, based on the results and feedback of the survey. Below, we provide these figures from our employee engagement survey for the last three years.

By employing a year over year look, the management team can determine the workplace climate, trends both in areas of opportunity and positivity, then strategize on a human capital management plan with a focus on employee engagement and retention.

In addition to the survey, we hold employee town hall meetings generally twice a year. These are generally attended by all employees. During these meetings, the management team provides updates on key elements of the business. In addition, the management team encourages employee questions or comments.

Employee Engagement
Year 2020 2021 2022
Participation (%)1 100% 94% 100%
Scores (out of 5) 4.21 4.13 4.31
Employee Turnover Rates2
Employee Turnover Rates2 2020 2021 2022
Involuntary 4.04% 0.0% 1.85%
Voluntary 6.06% 1.94% 1.85%
Total 10.10% 1.94% 3.70%
Retentions, promotions and Revenuew Producing Roles (% women)
Year 2020 2021 2022
Retention rate (% women)3 100% 100% 96%
Promotions (% women) 67% 50% 14%
Revenue producing roles (% women)4 36% 36% 38%
  1. Based on Gallup Poll survey conducted periodically of the existing employee base.
  2. Involuntary turnover is defined as termination of employment by the company. Voluntary turnover is defined as employees who chose to resign from their position (excluding retirement).
  3. Percentage of women who remained employed at Omega (excluding those who retired).
  4. Female employees who work in roles directly impacting the company’s revenues, excluding support staff – as per Bloomberg Gender Equality Index definition.
Investing In Our Communities

Community & Industry Development

Community

We have invested in several local charitable partnerships to improve economic, health and social outcomes in the local Baltimore, Maryland community, with a focus on the diverse local community and historically underrepresented communities.

Industry

Omega continues to sponsor Administrators in Training programs (AITs) at select facilities in partnership with operators. This program offers its participants the opportunity to develop the skillsets to lead operations at skilled nursing facilities and aims to enhance under-represented groups in senior roles at our properties. Since we began this program in 2020, Omega has sponsored eight AITs. Six individuals have completed training and have been, or are in the process of being, placed at a facility. Currently, two are in the training or selection process.

Additionally, we have committed as a Founding Donor to support Nareit’s Dividends Through Diversity, Equity & Inclusion program,  which supports charitable and educational organizations and initiatives that will help create a more diverse, equitable, and inclusive REIT and publicly traded real estate industry. Members of management serve on Nareit’s Corporate Governance Council and Real Estate Sustainability Council.

Investing In Our Communities

Philanthropy

Philanthropic & Charitable Initiatives

In 2020, Omega established, “The Omega Healthcare Investors Business Scholarship Fund”, an undergraduate scholarship fund for students at a local historically Black university. Omega funded a $100,000 per year commitment for 5 years. In 2022, Omega donated over $21,000 to Alzheimer’s related charities. In addition, each year Omega provides five charities that support diverse local communities with $10,000 each, provides a holiday charitable gift of $10,000 to a local charity, and provides a company match of up to $2,500 per employee in our Charitable Giving & Match program.

Year 2020 2021 2022
Charitable Giving & Match program $88,177 $265,255 $283,309
Protecting Our Stakeholders

Business Conduct & Ethics

Ethics & Risk Management

  • Code of Ethics: Our Code of Business Conduct and Ethics applies to our directors, officers and employees.
  • Whistleblower Policy: We maintain a whistleblower hotline and website administered by a third-party, which permits anonymous reporting of concerns.
  • Human Rights Policy: Our Human Rights Policy is informed by reference to third-party international organizations.
  • Enterprise Risk Management: Our Board reviews the Company’s risks and enterprise risk management processes regularly.
  • Vendor Code of Conduct: We implemented a Vendor Code of Conduct in 2021 aimed at improving corporate social responsibility among our key vendors and aligning their practices with our policies.

Total amount of monetary losses as a result of legal judgements associated with corruption and bribery

For each of the last three years, the Company has not experienced monetary losses as a result of legal proceedings associated with corruption and bribery.

Year 2020 2021 2022
Total amount of monetary losses as a result of legal judgements associated with corruption and bribery $0 $0 $0

Political Contributions Policy

Omega does not permit the illegal use of Company funds or property for the support of political parties or political candidates for any office (federal, state or local) in the United States or any foreign country. No director, officer or employee is authorized to make or approve such a contribution. See Section C, page 4, of our Code of Business Conduct & Ethics for more information.

Protecting Our Stakeholders

Data Security & Privacy

Omega’s Vice President of Technology is responsible for overseeing our information security program, which we aim to align with industry recognized cybersecurity frameworks. In addition, we maintain an Information Security Incident Response Plan, and have established information security/cybersecurity policies that are internally available to all employees. We conduct cybersecurity training for all employees at least annually. Additionally, we conduct regular cyber risk assessments through our cyber insurance carrier and conduct internal phishing and cyber tests to monitor vigilance of our employees. We employ an escalation process which employees can follow in the event an employee notices something suspicious, and conduct periodic assessments by third parties to assess our vulnerability management and security controls and to assist us in identifying and mitigating security risks. We generally hold corporate townhalls at least twice a year where employees are encouraged to recommend system changes to mitigate corporate risks; and employees may use an anonymous whistleblower hotline and website to raise potential concerns, threats, and risks.

Our Audit Committee has primary oversight of the Company’s information security and privacy efforts as they relate to financial reporting, and reviews and discusses the program with management quarterly, with the board providing general oversight of information security and privacy. Our management team reports to the Board on these efforts at least annually.

Protecting Our Stakeholders

Global Tax Strategy

It is Omega’s overall goal to meet and exceed expectations of its stakeholders, while continuing to build its reputation as a responsible member of the global business community. Our global tax strategy is intended to help facilitate this goal, while treating existing and potential jurisdictions as stakeholders and balancing their needs and concerns with those of the Company and the rest of its stakeholders.

See our Global Tax Strategy for more information.

Protecting Our Stakeholders

Compensation Practices

For each of the last three years, our Say-on-Pay advisory vote support1 has totaled over 95%.

Year 2020 2021 2022
Say-on-Pay Advisory Vote Support 96% 97% 95%

Compensation Practices

  • Stock Ownership Guidelines: We maintain stock ownership guidelines for our senior officers and our non-employee directors.
  • Clawback Policy: Our Board has voluntarily adopted a formal clawback policy that applies to executive incentive compensation.
  • Anti-Hedging and Anti-Pledging: Our directors, officers and employees are subject to anti-hedging and anti-pledging policies.
  • Annual Say-on-Pay: We annually submit “say-on-pay” advisory votes for our shareholders’ consideration and vote.
  1. As a percentage of votes cast.
Protecting Our Stakeholders

Board of Directors

Board Structure

  • Independence (%): 88%
  • Diversity (%): 38%. Our Nominating and Corporate Governance Committee endeavors to identify nominees that possess diverse educational backgrounds, business experiences, life skills, as well as diverse gender, racial, sexual orientation, national origin and ethnic characteristics.
  • Annual Election of Directors: Our Board consists of a single class of directors who stand for election each year.
  • Opted-out of Maryland Unsolicited Takeover Act: In November 2019, the Board opted out of the provisions of the Maryland Unsolicited Takeovers Act that otherwise would permit the Board, without shareholder approval, to divide the Board into three classes serving staggered three-year terms.
  • Majority Voting Standard for Direction Elections: Our Bylaws include a majority voting standard for the election of directors in uncontested elections. Any incumbent director who fails to receive the required vote for re-election must offer to resign from the Board. Stockholders can vote for, against or abstain from voting on each nominee.
  • Chair of the Board and CEO Roles Separated: Our independent Chair of the Board provides independent leadership for our Board.

Board Diversity 2015 vs. 2023

Board diversity pie chart of 2015 and 2022

Board Diversity 2015 vs. 2023
Year Male Female
2015 90% 10%
2023 62% 38%

Board Diversity 2015 vs. 2023

2 pie charts of director age breakdowns of 2015 and 2022

Board Diversity 2015 vs. 2023
Year 40s 50s 60s 70+
2015 0% 30% 20% 50%
2023 0% 12.5% 12.5% 75%

Board Diversity 2015 vs. 2023

2 pie charts of board tenure 2015 vs 2022

Board Diversity 2015 vs. 2023
years 0-5 years 6-10 years 11+ years
2015 50% 50%
2023 50% 25% 25%
  1. As of June, 2023.
Protecting Our Stakeholders

Shareholder Rights

  • No Poison Pill: We do not have a “poison pill” shareholder rights plan in effect.
  • Shareholder Amendments to Bylaws: Our Bylaws may be amended by shareholder vote.
  • Shareholder-Requested Special Meetings: Our shareholders have the ability to call a special meeting of shareholders in accordance with the process set forth in the Bylaws.
  • Proxy Access Bylaws: Stockholders meeting certain eligibility requirements have the right to nominate equal to the greater of two director seats or 20% of the Board with the process set forth in the Bylaws.
  • One Share, One Vote: All issued shares have equal voting rights.