Starwood 2008 Annual Report Download - page 32

van Paasschen and the other Named Executive Officers with respect to each executive’s strategic/operational
goals is described below.
Mr. van Paasschen’s accomplishments for the 2008 performance year included the following:
• Successfully continued the Company’s focus on building world class brands by launching the Aloft and
Element brands with 19 Aloft and Element hotel openings in 2008, sustaining the Sheraton revitalization
plan and increasing guest satisfaction scores across all brands
• Achieved strong financial results despite the economic environment and re-evaluated and redeveloped the
strategy for the Company’s vacation ownership business
• Led the streamlining of the Company’s operations, including a major reorganization to eliminate dual roles
and overlaps within the organization resulting in significant and ongoing cost savings and sponsored a sea
change strategy for U.S. benefits programs leading to cost savings
• Continued the strong growth in the Company’s hotel portfolio by opening 87 hotels and signing agreements
for an additional 147 hotels
• Developed strong relationships at key levels throughout the Company resulting in increased employee
satisfaction scores and positive changes to the Company’s culture despite the volatile economic climate
In light of Mr. van Paasschen’s accomplishments and impact on the Company, the Compensation
Committee awarded him a bonus of $1,820,000 for 2008, representing 91% of target.
Mr. Prabhu’s accomplishments for the 2008 performance year included the following:
• Managed through a difficult and fast changing environment, delivering strong financial results
• Successfully delivered a company income tax rate and property tax rate on the Company’s owned hotels
below budget and the target set
• Successfully negotiated a settlement with the IRS leading to an expected refund of over $220 million
• Ensured adequate liquidity to fund operations at optimal cost by issuing public debt and amending credit
facilities prior to the global credit crisis and devised strategies to repatriate offshore cash
• Completed major IT initiatives, including the migration to a new reservation system
In light of Mr. Prabhu’s accomplishments, he received a “meets expectations” performance rating and
was awarded 100% of his individual bonus target. Combined with the 82% financial performance component,
Mr. Prabhu’s 2008 bonus was 91% of target.
Mr. Siegel’s individual accomplishments for the 2008 performance year included the following:
• Led a restructuring of the worldwide legal organization resulting in a consolidation of functions within the
United States and an overall 28% reduction in costs
• Designed a comprehensive environmental sustainability program utilizing cost effective initiatives and
designed the framework for a comprehensive Corporate Social Responsibility program to be implemented
by 2010
• Reduced outside legal fees 25% on a global basis and implemented new guidelines for the retention of
outside legal counsel, resulting in significant fee discounts
• Played a significant role in on-boarding new members of senior management team and facilitated a seamless
transition of the Human Resources function
• Successfully managed the legal department in handling development transactions and internal restructurings
with minimum use of outside counsel
20