8-KRegulation FD

Prologis, Inc. 8-K Report, Regulation FD Disclosure (Jan 31, 2007)

Filed January 31, 2007For Securities:PLDPLDGP

Summary

This 8-K filing from AMB Property Corporation (which later became Prologis, Inc.) on January 31, 2007, discloses a significant stock option exercise by its Chairman and CEO, Hamid R. Moghadam. Mr. Moghadam exercised vested stock options in a stock-for-stock transaction, resulting in a net increase of 402,232 common shares to his holdings. Notably, these shares were then deferred into his company-provided deferred compensation plan, rather than being sold on the open market. This indicates the CEO's continued confidence in the company's future prospects and a strategy to increase his long-term equity stake.

Key Highlights

  • 1CEO Hamid R. Moghadam exercised 606,384 vested stock options on January 29, 2007.
  • 2The transaction was conducted on a stock-for-stock basis, meaning no cash was received by the CEO from exercising the options.
  • 3Mr. Moghadam's net shareholding increased by 402,232 common shares as a result of the exercise.
  • 4The newly acquired shares were deferred into the CEO's deferred compensation plan, not sold in the open market.
  • 5This transaction demonstrates the CEO's commitment to holding AMB Property Corporation stock.
  • 6The options exercised were originally granted in 1998 and 2000 with expiration dates in 2008 and 2010.
  • 7Post-transaction, Mr. Moghadam beneficially owns 2,881,374 common shares and units, and holds options for an additional 2,072,703 shares.

Frequently Asked Questions

The primary event reported is the exercise of vested stock options by AMB Property Corporation's Chairman and CEO, Hamid R. Moghadam, on January 29, 2007.

No, the CEO did not sell any shares of common stock in the open market. The transaction was a stock-for-stock exercise, and the resulting shares were deferred into his compensation plan.

Deferring the shares into a compensation plan suggests the CEO's long-term confidence in the company's value and his intent to increase his equity ownership over time, rather than liquidating his gains.

The net effect of the transaction was an increase of 402,232 common shares in Mr. Moghadam's beneficial ownership, bringing his total to 2,881,374 common shares and units, excluding options.