Starwood 2010 Annual Report Download - page 38

Mr. van Paasschen’s accomplishments for the 2010 performance year included the following:
• Delivered strong financial returns, as measured by key financial measures including EBITDA, EPS, and
shareholder return, in excess of both the S&P 500 average and the S&P 500 average for hotel companies for
2010;
• Furthered strong growth in the Company’s hotel portfolio by opening 72 new hotels and executing signed
deals for 96 new hotels and 59 re-engagements of existing hotels;
• Maintained Starwood’s position as a brand leader and innovator by improving market share across most
Company brands and increasing membership in the Company’s Preferred Guest Program;
• Achieved increased employee satisfaction scores and introduced new initiatives to develop management
talent within the Company; and
• Announced water and energy reduction targets, with global initiatives rolled out to support these goals.
In light of Mr. van Paasschen’s accomplishments and impact on the Company, the Compensation Committee
awarded him a payout at 120% of target for the strategic/operational portion of the annual bonus, for a total annual
bonus of $3,000,000 for 2010, representing 120% of his overall annual bonus target.
Mr. Avril’s accomplishments for the 2010 performance year included the following:
• Significantly gained market share across most Company brands, including an 1.5% increase over last year in
our North America Division led by a 2.1% increase in market share for our Sheraton brand, and a 7.1%
increase over last year for our W brand globally;
• Significantly increased from the prior year the hotel group EBITDA and owned hotels EBITDA, outpacing
our budgeted revenue growth by 7%, and 32% in each case, respectively;
• Redesigned the Starwood Preferred Guest enrollment process, resulting in a significant increase in the
Company’s Preferred Guest Program;
• Opened 72 hotels worldwide and delivered strong guest satisfaction index (GSI) scores across all brands,
despite inherent pressures from raising rates and occupancy levels; and
• Furthered key relationships with hotel owners, joint venture partners and our Company’s personnel to drive
revenue, strong owner relations, and retention of management talent throughout our hotels.
In light of Mr. Avril’s accomplishments in 2010, he received an “accomplished objectives” PMP performance rating
and was awarded a payout at 120% of target for the strategic/operational portion of the annual bonus, for a total
annual bonus of $902,100 for 2010, representing 120% of his overall annual bonus target.
Mr. Prabhu’s accomplishments for the 2010 performance year included the following:
• Continued to strengthen the Company’s liquidity position and reduce leverage by extending the Company’s
$1.6 billion credit facility to 2013 and significantly reducing debt;
• Exceeded the Company’s cash flow budget by almost $800 million and lowered net debt to $2 billion with
approximately $650 million in cash reserves at year-end;
• Received a total tax refund of $245 million for the successful settlement of a tax matter with the United
States Internal Revenue Service;
• Led a strategic sourcing team that delivered savings of $37 million with the successful negotiation of
contracts in 2010; and
• Managed the Company’s financial operations efficiently, improving the accuracy of our forecasting and
continuing a focus on strong internal controls.
In light of Mr. Prabhu’s accomplishments, he received an “accomplished objectives” PMP performance rating and
the Compensation Committee awarded him a payout at 120% of target for the strategic/operational portion of the
annual bonus, for a total annual bonus of $902,100 for 2010, representing 120% of his overall annual bonus target.
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