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 changes in beneficial ownership due to dividend equivalent rights on restricted stock units.
Summary
- A. Robert Paratte, an executive at Kilroy Realty Corporation, filed a Form 4 to report changes in beneficial ownership.
- The changes involve the acquisition of common stock and restricted stock units due to dividend equivalent rights.
- These rights are associated with previously reported restricted stock unit awards granted under the Kilroy Realty 2006 Incentive Award Plan.
- The transactions occurred on July 10, 2024.
- Paratte acquired 377.1432 shares of common stock at $0 per share due to dividend equivalent rights.
- He also acquired 287.1304 and 436.9605 restricted stock units, also at $0 per unit, related to performance units awarded in 2022 and 2023 respectively.
- These performance units cover three-year performance periods ending December 31, 2024, and December 31, 2025.
- 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.
- The units remain subject to additional time-based vesting requirements.
- Following the reported transactions, Paratte beneficially owns 68,516.522 shares of common stock and 44,035.4506 restricted stock units.
Sentiment
Score: 5
Explanation: The document is a routine regulatory filing detailing changes in beneficial ownership due to standard compensation practices. It doesn't contain any information that would significantly impact investor sentiment positively or negatively.
Future Outlook
The restricted stock units remain subject to additional time-based vesting requirements.
Industry Context
Form 4 filings are routine disclosures required by the SEC for company insiders, providing transparency into their transactions in the company's securities. This filing reflects standard compensation practices involving equity-based awards and dividend equivalent rights.
Comparison to Industry Standards
- Equity compensation is a common practice among publicly traded REITs like Kilroy Realty to align management's interests with those of shareholders.
- Dividend equivalent rights on restricted stock units are also a standard feature in executive compensation packages, ensuring that executives receive the same benefits as common shareholders during the vesting period.
- Comparable companies such as Boston Properties (BXP) and Alexandria Real Estate Equities (ARE) also utilize similar equity compensation plans for their executives.
Stakeholder Impact
- The filing provides transparency to shareholders regarding executive compensation and ownership.
- The transactions do not have a direct impact on employees, customers, suppliers, or creditors.
Key Dates
| Date | Description |
|---|---|
| 07/10/2024 | Date of earliest transaction (acquisition of common stock and restricted stock units). |
| 07/12/2024 | Date of signature by attorney-in-fact. |
| 12/31/2024 | End of three-year performance period for 2022 performance units. |
| 12/31/2025 | End of three-year performance period for 2023 performance units. |
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