Starwood 2008 Annual Report Download - page 33

In light of Mr. Siegel’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. Siegel’s 2008 bonus was 91% of target.
Mr. Avril’s accomplishments for the 2008 performance year included the following:
• Led a major restructuring and cost containment effort at the Company’s vacation ownership subsidiary,
resulting in significant cash savings and a reduction in the scope of business
• Assumed responsibility for the global hotel group and enhanced relationships with key owners
• Assumed overall responsibility for the vacation ownership business following the departure of the former
CEO of SVO and continued best practices and positive culture despite the difficult economic environment
• Played a key role in various initiatives on revenue management, reducing overlap across functions and
reducing costs in the operations area
• Effectively developed succession planning and enhanced the group dynamic with direct reports
In light of Mr. Avril’s accomplishments in 2008, he received a “meets expectations” performance rating
and was awarded 80% of his individual bonus target. Combined with the 68% financial performance
component (pro-rated for service as President of SVO from January through September), Mr. Avril’s 2008
bonus was 74% of target.
Mr. McAveety’s accomplishments for the 2008 performance year included the following:
• Completed a review of the brand management function and led a major restructuring of the group and
integrated various functions to drive effectiveness and efficiency
• Created a brand design and a brand business service function and aligned the international divisions on
structure and approach to create a sense of a single brand team
• Focused the brand leadership teams on best practices and prioritized strategic initiatives and approaches
• Delivered efficiencies in brand management resulting in significant cost savings
In light of Mr. McAveety’s accomplishments in 2008, he received a “meets expectations” performance
rating and was awarded 100% of his individual bonus target. Combined with the 82% financial performance
component, Mr. McAveety’s 2008 bonus was 91% of target (pro-rated for his March 2008 start date).
Mr. Turner joined the Company in May 2008. Pursuant to his employment agreement, Mr. Turner was
entitled to at least a pro-rated target bonus for 2008. The Compensation Committee awarded Mr. Turner the
minimum amount permitted under his employment agreement and did not exercise its discretion to award
amounts in excess of the minimum.
Overall, the Compensation Committee paid the majority of the Named Executive Officers individual
bonuses that were at target for their individual performance, resulting in overall bonuses that were below target
when combined with the Company financial performance portion. These decisions were made in consideration
of the strong individual performance of each of the Named Executive Officers despite the difficult economic
climate and multiple changes at the senior executive level resulting in changing roles and responsibilities.
Conclusion.
Viewed on a combined basis once minimum performance is attained, the annual incentive payments
attributable to both Company financial and strategic/operational performance range from 0% — 187.5% of
target for the Named Executive Officers, other than the Chief Executive Officer.
Equity awards are generally granted in February of each year following the announcement of the
Company’s earnings for the previous year. Performance reviews and bonus awards for the prior operating year
are made at that time. In determining the equity awards granted in 2008, the Compensation Committee
considered and took into account the Company’s performance and the individual performance of each Named
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