Form 4: Kilroy Realty Executive A. Robert Paratte Reports Changes in Beneficial Ownership
SEC Form 4
A. Robert Paratte, Executive Vice President and Chief Leasing Officer of Kilroy Realty, reports transactions involving restricted stock units and common stock related to dividend equivalent rights.
Summary
- On October 9, 2024, A. Robert Paratte, an executive at Kilroy Realty Corporation, reported changes in beneficial ownership.
- These changes involve the acquisition of common stock and restricted stock units due to dividend equivalent rights related to previously reported awards.
- Paratte acquired 330.1888 shares of common stock at $0 and disposed of 68,846.7108 shares.
- Additionally, Paratte acquired 251.3826 and 382.5588 restricted stock units, each representing a contingent right to receive one share of Kilroy Realty common stock.
- These restricted stock units are related to performance units awarded in 2022 and 2023, with performance periods ending December 31, 2024, and December 31, 2025, respectively.
- The reported units reflect the additional minimum number of units eligible to vest as a result of the crediting of restricted stock units in respect of dividend equivalent rights.
Sentiment
Score: 5
Explanation: The document is a standard regulatory filing detailing changes in beneficial ownership, with no inherent positive or negative sentiment. It reflects routine executive compensation practices.
Future Outlook
The document does not contain specific forward-looking statements beyond the vesting of performance units based on future performance periods.
Industry Context
This filing is a routine disclosure related to executive compensation and equity ownership, common in publicly traded companies like Kilroy Realty. It reflects standard practices for incentivizing and rewarding executives through equity-based compensation.
Comparison to Industry Standards
- Equity compensation is a common practice among publicly traded REITs like Kilroy Realty (KRC).
- Companies such as Boston Properties (BXP) and Equity Residential (EQR) also utilize restricted stock units and performance-based equity awards to align executive incentives with shareholder value.
- The specific terms of these awards, such as vesting schedules and performance metrics, can vary widely based on company-specific goals and industry benchmarks.
- Dividend equivalent rights are a fairly standard feature of restricted stock unit awards, ensuring that executives receive the same economic benefits as common shareholders during the vesting period.
Stakeholder Impact
- The transactions have a minor impact on shareholders, reflecting changes in executive equity ownership.
- Employees may be indirectly affected through the incentive structure for executives.
Key Dates
| Date | Description |
|---|---|
| 10/09/2024 | Date of earliest transaction and acquisition of common stock and restricted stock units. |
| 10/11/2024 | Date of signature by attorney-in-fact. |
| 12/31/2024 | End of the three-year performance period for 2022 performance units. |
| 12/31/2025 | End of the three-year performance period for 2023 performance units. |
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