Starwood 2007 Annual Report Download - page 53

B. Attendance Fees
Directors do not receive fees for attendance at meetings. However, the Company reimburses Directors for
expenses they incurred related to 2007 meeting attendance, including attendance by spouses at one meeting each
year.
C. Equity grant
Prior to 2008, each Director received an annual grant (made at the same time as the annual grant is made to
other employees) under our LTIP of a nonqualified stock option with respect to 4,500 shares of Company stock with
an exercise price equal to the fair market value of the shares on the option grant date. The options are fully vested
and exercisable upon grant and are scheduled to expire eight years after the grant date. Beginning in 2008, each
Director will receive an annual equity grant (made at the same time as the annual grant is made to other employees)
under our LTIP with a value of $100,000. The equity grant will be delivered 50% in stock units and 50% in stock
options. The number of stock units is determined by dividing the value ($50,000) by the average of the high and low
price on the date of grant. The number of options is determined by dividing the value ($50,000) by the average of the
high and low price on the date of grant (also the exercise price) and multiplying by three. The options are fully
vested and exercisable upon grant and are scheduled to expire eight years after the grant date.
D. Starwood Preferred Guest Program Points and Rooms
In 2007, each Director received an annual grant of 750,000 Starwood Preferred Guest (“SPG”) Points to
encourage our Directors to visit and personally evaluate our properties.
E. Other Compensation
The Company makes available to the Chairman of the Board administrative assistant services and health
insurance coverage on terms comparable to those available to Starwood executives until the Chairman turns 70 years
old and thereafter on terms available to Company retirees (including required contributions). The Company also
reimburses directors for travel expenses, other out-of-pocket costs they incur when attending meetings and, for one
meeting per year, expenses related to attendance by spouses.
We have summarized the compensation paid by the Company to our non-employee Directors in 2007 in the
table below.
Name of Director(1)
Fees Earned
or Paid in Cash
($)
Stock
Awards (2)
(3)
($)
Option
Awards (4)
($)
All Other
Compensation (5)
($)
Total
($)
Adam M. Aron .......... 12,250 65,070 86,270 12,676 176,266
Charlene Barshefsky ...... 7,750 65,070 86,270 17,329 176,419
Jean-Marc Chapus ....... 17,250 65,070 86,270 13,879 182,469
Bruce W. Duncan ........ 6,000 127,070 86,270 83,751 303,091
Lizanne Galbreath ....... 44,750 65,070 86,270 14,703 210,793
Eric Hippeau............ 10,500 65,070 86,270 29,452 191,292
Stephen R. Quazzo ....... 16,250 65,070 86,270 12,946 180,536
Thomas O. Ryder ........ 53,250 65,070 86,270 24,279 228,869
Kneeland C. Youngblood . . 63,000 32,472 86,270 — 181,742
(1) Mr. Van Paasschen is not included in this table because he was an employee of the Company and thus received
no compensation for his services as a Director. Mr. Van Paasschen’s 2007 compensation from the Company is
disclosed in the Summary Compensation Table on page 27. For Mr. Duncan, excludes compensation received
for serving as Chief Executive Officer on an interim basis, which is disclosed in the Summary Compensation
Table on page 27. While Mr. Duncan was serving as Chief Executive Officer on an interim basis, he received no
compensation for his service as a Director.
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