ProLogis CEO Rakowich Earns $5.7 Million In 2008

DAVID PITT

DES MOINES, Iowa (AP) — Walter Rakowich, who was promoted to chief executive of industrial real estate investment trust ProLogis last November, received compensation valued at $5.7 million in 2008.

His compensation was down sharply from $11.9 million the year before as he collected a smaller bonus and he was awarded less in restricted stock and stock options.

Walter Rakowich, 51, succeeded chairman and chief executive Jeffrey H. Schwartz, who resigned on Nov. 10 and took a paid leave of absence until Dec. 8, when he left the company.

Schwartz had been board chairman since May 2007 and CEO since January 2005. He had worked for the company since 1994.

Rakowich's salary in 2008 was $630,000, the same he received the year before as chief operating officer. He agreed to a cash bonus of $420,000, which was half of the amount in his employment contract due to economic conditions affecting the company.

Denver-based ProLogis said the bonus reduction recognizes financial performance "and the negative performance of our common shares in 2008." Shares fell 78 percent during the year.