Summary
Prologis, Inc. (PLD) filed an 8-K on December 12, 2011, reporting the adoption of a new Nonqualified Deferred Compensation Plan, effective January 1, 2012. This plan allows for voluntary deferral of certain cash and equity-based compensation for non-employee directors and a select group of management and highly compensated employees. The objective is to provide tax-deferred growth opportunities and enhance employee retention and alignment with shareholder interests. The plan permits significant deferral percentages, including up to 100% of base pay and bonuses for employees, and deferral of directors' fees and long-term incentive equity awards. While participants can select from various investment options for their elective deferrals (excluding company stock for employees), deferred equity compensation is settled solely in Prologis shares. Importantly, all amounts held under the plan are subject to the claims of Prologis' general creditors in the event of bankruptcy, meaning participants are unsecured creditors.
Key Highlights
- 1Prologis adopted a Nonqualified Deferred Compensation Plan effective January 1, 2012.
- 2The plan allows non-employee directors and select highly compensated employees/officers to defer compensation.
- 3Employees can defer up to 100% of annual base pay and 100% of the cash portion of bonuses.
- 4Non-employee directors and eligible employees can defer certain equity-based awards from long-term incentive plans.
- 5Deferred equity awards are settled in Prologis company stock.
- 6All amounts credited to participant accounts are subject to the claims of Prologis' general creditors.
- 7Prologis reserves the right to make discretionary matching contributions.