Simon 2018 Proxy Statement

2017 PAY RATIO DISCLOSURE

As required by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and in accordance with the rules of the SEC adopted thereunder, we are providing the following disclosure about the relationship of the annual total compensation of our employees to the annual total compensation of Mr. David Simon, our Chief Executive Officer. To understand this disclosure, we think it is important to give context to our operations. Our corporate headquarters are in Indianapolis, Indiana. We own, develop and manage premier shopping, dining, entertainment and mixed-use destinations. As of December 31, 2017, we owned or held an interest in 207 income-producing properties in 37 states and Puerto Rico. Internationally, as of December 31, 2017, we had ownership interests in fifteen properties in Asia, four properties in Canada and Mexico and eight properties in Europe, of which six properties are consolidated. Notwithstanding our international properties, fewer than 5% of our employees are located outside of the United States. We strive to create a global compensation program, which is competitive in terms of both the position and the geographic location in which the employee is located. Accordingly, our pay structures vary amongst employees based on position and geographic location. We selected October 1, 2017, as the date on which to determine our median employee. As of that date, we had approximately 3,500 employees, of which 30 were located outside of the U.S. To determine our median employee, we considered employees who were employed by the Company or any of its wholly owned or consolidated subsidiaries on October 1, 2017, whether the employees were full-time, part-time, seasonal, or temporary. Because fewer than 5% of our employees are international employees, we excluded our international workforce, which consists of 24 employees in Canada, four employees in Luxembourg, one employee in France, and one employee in Hong Kong. For purposes of calculating the compensation of our employees to determine the median employee we measured compensation using the 12-month period ending December 31, 2017, and used a consistently applied compensation measure that consists of the elements described below: • Salary: Including base salary, pay for time worked, premium pay (e.g. overtime), and differentials (e.g. holiday worked). • Bonus: Including variable pay such as annual bonuses, spot bonuses, and commissions. In determining the annual total compensation of the median employee, we calculated such employee’s compensation in accordance with Item 402(c)(2)(x) of Regulation S-K as required pursuant to SEC executive compensation disclosure rules. This calculation is the same calculation used to determine total compensation for purposes of the 2017 Summary Compensation Table with respect to each of the named executive officers. The Company has made the following calculations in accordance with the rules of the SEC: • The median of the annual total compensation of all of our employees, other than our CEO, was $53,872. • Our CEO’s annual total compensation, as reported in the ‘‘Total’’ column of the 2017 Summary Compensation Table, was $4,765,657. • Based on this information, the ratio of the annual total compensation of our CEO to the median of the annual total compensation of all employees is estimated to be 88 to 1. IDENTIFICATION OF MEDIAN EMPLOYEE 2017 PAY RATIO

SIMON PROPERTY GROUP 2018 PROXY STATEMENT 43