Company: PLDGP
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001193125-25-067058
Chunk: 54

Company: Prologis, Inc.
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 54
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CUSSION AND ANALYSIS |

2024 Outperformance Compensation: Prologis Promote Plan (PPP) PPP drives Strategic Capital outperformance, a key competitive advantage:Our partners requested senior management be directly incentivized to generate strong returns in our vehicles, leading to the creation of PPP. See page 37 for details on how Strategic Capital is critical to our overall enterprise and ultimately rewards Prologis’ stockholders.

| Reduced potential pool for PPP awards: While stockholders support PPP’s role in driving Strategic Capital outperformance, they raised concerns about award sizes in recent years. In response, the Committee reduced the PPP award pool from 40% to 25% of Promote incentive fees, starting with Promotes earned in 2024. |

PPP attracts top talent:To compete with financial services and asset management firms, we need a compensation structure aligned with industry norms. PPP mirrors profit-sharing models, helping us recruit and retain top-tiertalent with the skills needed to drive outperformance in our Strategic Capital vehicles. PPP supports our executive succession strategy:By extending beyond executives, PPP helps retain and develop future leaders with the skills to deliver strong returns for our Strategic Capital investors and stockholders alike. CEO’s PPP allocation reflects his leadership:As the architect of our Strategic Capital business, Mr. Moghadam played a pivotal role in its launch and growth. He built many of the key relationships that now underpin our vehicles. His allocation of PPP award pools recognizes these contributions while preserving a substantial share for non-executiveemployees essential to Strategic Capital’s success.

| HOW IT WORKS |

| Promote structure: Promotes are earned by Prologis when a vehicle’s return exceeds the applicable hurdle, often requiring annualized return in excess of 7%-9%. If a hurdle is met, Prologis is paid a Promote, which is typically 10%-20% of returns above the hurdle. PPP awards are paid out of this Promote amount.   Strenuous hurdles: Promote hurdles are established in advance with our Strategic Capital investors, who provide third-party validation of the rigor of these hurdles. These partners have an interest in setting high thresholds to drive superior returns. |
| Performance periods: Performance periods are typically three years but can be shorter depending on the vehicle.                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Cap: Aggregate PPP awards paid to any individual in any calendar year are capped at the person’s total Core Compensation amount paid in the two most recent years.                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Stockholder alignment: All PPP awards granted to NEO