Robert Paratte
About Robert Paratte
A. Robert Paratte is Executive Vice President and Chief Leasing Officer at Kilroy Realty (KRC), appointed effective February 2023; he previously served as EVP, Head of Leasing and Business Development from 2014 to 2023. He is 69, a licensed California Real Estate Broker, and a member of the Urban Land Institute; he holds a B.S. in Environmental Planning from UC Davis and an MBA from the University of San Francisco . Company performance metrics relevant to his incentives include 2024 short‑term incentive results (Operations: 131% of target; Balance Sheet Management: 150% of target; Corporate Responsibility: 100% of target; Individual Performance: Paratte set at 110%) and 2024 FFO (As Adjusted) Per Share of $4.59, which banked 150% of target performance‑based RSUs for NEOs, pending three‑year TSR and Net Debt/EBITDA modifiers .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Kilroy Realty Corporation | EVP, Chief Leasing Officer | Effective Feb 2023 | Leads leasing and business development across all regions |
| Kilroy Realty Corporation | EVP, Head of Leasing & Business Development | 2014–2023 | Drove leasing, acquisitions, development, and property management initiatives |
| Tishman Speyer | Managing Director, Global Leasing & Business Development | 2007–2013 | Led global leasing and BD for major office portfolios |
| William Wilson & Associates (San Francisco) | Partner | Not disclosed | Senior leadership in leasing and property functions |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Urban Land Institute | Member | Not disclosed | Industry engagement and best practices network |
| State of California | Licensed Real Estate Broker | Not disclosed | Professional licensure supporting leasing execution |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 550,000 | 550,000 | 550,000 |
| Non‑Equity Incentive (Annual Bonus) ($) | 687,500 | 687,500 | 691,625 |
| All Other Compensation ($) | 119,002 | 114,760 | 115,059 |
| Total Compensation ($) | 3,102,794 | 3,059,529 | 3,071,192 |
- 2024 base salary affirmed at $550,000; 2024 target short‑term incentive set at $550,000; actual short‑term incentive paid was $691,625 (125.8% of target). Paratte’s individual performance factor was set at 110% for 2024, reflecting strong contribution .
2024 Perquisites
- Medical allowance of $25,000 and auto allowance provided in 2024; both eliminated in 2025 for NEOs (including Paratte) .
Performance Compensation
Short‑Term Incentive Framework (2024 outcomes)
| Category (Weight) | Target Definition | 2024 Assessment |
|---|---|---|
| Operations (60%) | Budgeted leasing/occupancy, NOI/FFO drivers | 131% of Target |
| Balance Sheet Mgmt (10%) | Leverage and liquidity objectives | 150% of Target |
| Corporate Responsibility (10%) | ESG and CSR goals | 100% of Target |
| Individual Performance (20%) | Role‑specific impact | Paratte set at 110% |
2024 Annual Equity Award Values (grant‑date structure: 25% time‑based RSUs, 75% performance‑based RSUs)
| Component | Grant Value ($) | Notes |
|---|---|---|
| Time‑Based RSUs (25%) | 425,000 | Vests ratably over 3 years (Jan 5, 2025/2026/2027) |
| Performance‑Based RSUs (75%) | 1,275,000 | 3‑yr cliff vest post 2026; eligibility banked based on 2024 FFO; modifiers: TSR vs office REIT peers and Average Net Debt/EBITDA over 2024–2026 |
| Total 2024 Equity Award | 1,700,000 | Majority of LTI performance‑based; no options granted |
2024 Plan‑Based Award Details (Paratte)
| Award Type | Threshold | Target | Maximum | Units/Notes |
|---|---|---|---|---|
| Short‑Term Incentive ($) | — | 550,000 | 825,000 | Paid 691,625 (125.8%) |
| Time‑Based RSUs (#) | — | — | — | 12,074 units granted 2/1/2024; vest ratably 2025/2026/2027 |
| Performance‑Based RSUs (#) | 9,055 | 36,222 | 81,499 | 2024 FFO (As Adjusted) Per Share = $4.59 → 150% “Banked Shares”; final vest on TSR and Net Debt/EBITDA over 2024–2026 |
- Mechanics: 2024 performance‑based RSUs bank eligibility determined by FFO (As Adjusted) Per Share (threshold‑to‑150%); then 50% modified by three‑year TSR percentile vs office REIT peers (50%–150% modifier) and 50% by Average Net Debt/EBITDA (50%–150% modifier); three‑year cliff vest contingent on continued service .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 67,949 shares; less than 1% of outstanding |
| Stock Ownership Guidelines | 300% of base salary; Paratte is in compliance as of Dec 31, 2024 |
| Anti‑Hedging | Hedging and derivatives transactions prohibited for insiders |
| Anti‑Pledging | Pledging prohibited for Section 16 officers, with limited exceptions; no other exceptions have been made |
| Options | No options outstanding; equity is solely RSUs |
| 2024 RSU Vesting Realized | 59,705 shares vested; $2,147,944 value realized on vesting in 2024 |
| Deferred Compensation | Executive contributions $55,000; registrant contributions $55,000; earnings $111,692; withdrawals $(232,908); year‑end balance $965,813 |
Unvested/Unearned RSUs and Key Vest Dates (as of Dec 31, 2024)
| Grant | Type | Units Unvested/Unearned | Vesting Terms / Dates |
|---|---|---|---|
| 1/28/2022 | Performance‑Based RSUs | 35,426 | 3‑yr cliff post 12/31/2024; vest determined Feb 2025 by TSR and Net Debt/EBITDA modifiers (Banked Shares from 2022 FFO) |
| 1/28/2022 | Time‑Based RSUs | 2,624 | Scheduled to vest Jan 5, 2025 |
| 2/6/2023 | Performance‑Based RSUs | 53,912 | 3‑yr cliff post 12/31/2025; vest determined after performance period |
| 2/6/2023 | Time‑Based RSUs | 7,987 | Vests in two equal installments Jan 5, 2025 and Jan 5, 2026 |
| 2/1/2024 | Performance‑Based RSUs | 56,947 | 3‑yr cliff post 12/31/2026; eligibility banked at 150% based on 2024 FFO; final vest set by 2024–2026 TSR and Net Debt/EBITDA |
| 2/1/2024 | Time‑Based RSUs | 12,655 | Vests ratably in three installments on Jan 5, 2025/2026/2027 |
Employment Terms
| Provision | Details |
|---|---|
| Employment Start at KRC | Officer since 2014; joined KRC in January 2014 |
| Current Role | EVP, Chief Leasing Officer effective February 2023 |
| Employment Agreement | No individual employment agreement disclosed for Paratte; agreements summarized for other NEOs only |
| Severance | No cash severance or medical benefits disclosed for Paratte under termination w/o cause or for good reason; accelerated vesting value $7,259,522; same accelerated vesting value for death/disability |
| Change‑of‑Control | No single‑trigger severance or equity acceleration; double‑trigger framework applies |
| Clawback | SEC/NYSE‑compliant recovery policy covering incentive comp tied to financial metrics within a 3‑year lookback in restatement scenarios |
| Tax Gross‑Ups | None (no excise tax gross‑ups) |
| Insider Trading Policy | Formal policy filed as Exhibit 19.1 to 2024 Form 10‑K; robust procedures for directors and officers |
Investment Implications
- Strong pay‑for‑performance alignment: Majority of Paratte’s LTI is performance‑based RSUs (75% of 2024 award), with vesting contingent on multi‑year TSR and leverage discipline (Average Net Debt/EBITDA), and 2024 outcomes already banked at 150% based on FFO—tying upside to long‑term shareholder returns and balance sheet quality .
- Limited near‑term selling pressure but January vesting cadence is notable: Time‑based RSUs vest annually each January (2025/2026/2027), and 2023 and 2024 performance‑based RSUs cliff vest post‑2025 and post‑2026, respectively; 2024 realized vesting was ~$2.15M, but stock holding requirements and anti‑hedging/pledging policies mitigate immediate sale risk .
- Retention risk appears moderate: No cash severance, but substantial accelerated vesting on termination indicates equity is the primary retention mechanism; no single‑trigger CIC and clawback provisions further align conduct and performance with shareholders .
- Governance quality supportive: Independent comp consultant, robust ownership guidelines (Paratte in compliance at 300% of salary), anti‑hedging/pledging, and annual say‑on‑pay reinforce shareholder alignment and reduce governance red flags .
Overall, Paratte’s incentive structure emphasizes leasing execution and capital discipline over multi‑year horizons, with well‑defined performance gates and governance guardrails that reduce misalignment and most compensation‑related red flags .