Form 4: Boston Properties Director Acquires Phantom Stock Units

Director Mary E. Kipp acquired phantom stock units in Boston Properties, Inc. under the company's 2021 Stock Incentive Plan.

Summary

• On March 31, 2024, Mary E. Kipp, a director of Boston Properties Inc. (BXP), acquired 497.63 phantom stock units.
• These units were awarded under the company's 2021 Stock Incentive Plan as an alternative to director cash compensation fees.
• The phantom stock units convert to BXP common stock on a 1-for-1 basis and will be settled in shares of BXP common stock (with fractional units settled in cash) after the director's retirement from the BXP Board.
• The reporting person now beneficially owns 4,047.65 phantom stock units, including 49.01 units received pursuant to dividend equivalent rights on January 30, 2024.
• The price of the phantom stock units was $65.31.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The acquisition of phantom stock units by a director suggests confidence in the company's prospects, but it's a routine transaction.

Positives

• The acquisition of phantom stock units by a director signals confidence in the company's future performance.
• The use of phantom stock units as compensation aligns the director's interests with those of the shareholders.

Future Outlook

The phantom stock units will be settled in shares of BXP common stock after the director's retirement from the BXP Board, either in a lump sum or in ten annual installments, at the reporting person's election.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies. It provides transparency into the compensation structure and ownership of company stock by its directors.

Comparison to Industry Standards

• Phantom stock plans are a fairly common form of executive compensation in the real estate industry, used by companies like Simon Property Group and Equity Residential to align executive incentives with shareholder value.
• The vesting and settlement terms described are typical, often tied to retirement or continued service on the board.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's performance.

Key Dates