Form 4: Alexander & Baldwin Executive Scott G. Morita Reports Stock Transactions

Vice President and Corporate Counsel of Alexander & Baldwin, Scott G. Morita, reports acquisition and disposal of company stock related to vesting of restricted and performance stock units.

Summary

• Scott G. Morita, Vice President and Corporate Counsel at Alexander & Baldwin, reported several transactions involving the company's common stock on February 1, 2025.
• These transactions include the acquisition of 2,941 shares of common stock from restricted stock units vesting, and 309 shares from performance share units vesting.
• Additionally, 171 shares were disposed of to cover tax obligations from performance stock units, and 1,328 shares were disposed of to cover tax obligations from restricted stock units.
• The restricted stock units vest in three equal annual installments starting one year from the transaction date.
• The performance share units vested based on the company's total shareholder return over a three-year period ending December 31, 2024, relative to the FTSE Nareit All-Equity REIT Index and a selected peer group index.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and stock transactions. The vesting of performance units suggests positive performance, but the tax-related disposals are neutral.

Positives

• The vesting of restricted and performance stock units indicates that the company is meeting its performance goals and rewarding its executives.
• The acquisition of shares by the executive increases their stake in the company, aligning their interests with shareholders.

Negatives

• The disposal of shares to cover tax obligations reduces the executive's overall holdings in the company.

Risks

• The value of the stock could fluctuate, impacting the value of the vested shares.
• Future performance may not meet the targets required for performance share units to vest.

Future Outlook

The restricted stock units will continue to vest in three equal annual installments beginning a year from the transaction date.

Industry Context

This filing is a routine disclosure of stock transactions by a company executive, which is common in publicly traded companies. The vesting of performance share units is tied to the company's performance relative to its peers in the REIT sector.

Comparison to Industry Standards

• The use of restricted stock units and performance share units is a common practice in executive compensation across the real estate industry, including companies like Prologis, Equity Residential, and Simon Property Group.
• The vesting of performance share units based on total shareholder return relative to a peer group is a standard method for aligning executive compensation with shareholder value creation.
• The three-year performance period is also a typical timeframe for such performance-based equity awards.

Stakeholder Impact

• Shareholders may view the vesting of performance units positively, as it indicates the company is meeting its performance goals.
• The transactions have a minor impact on the total number of shares outstanding.

Next Steps

• The executive will continue to receive vesting of restricted stock units in the next two years.

Key Dates

Keywords

stock, Alexander & Baldwin, insider trading, restricted stock units, performance share units, vesting, executive compensation, Form 4