Starwood 2015 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2015 Starwood annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 64

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64

Table of Contents
Primary Elements of 2015 Executive Compensation Program
The primary elements of our 2015 executive compensation program for our named executive officers were:
Element Description Purpose
BaseSalary
• Fixed annual cash compensation based on competitive
market levels when compared with peer companies and
aligned with our compensation philosophy
• Enables us to continue to attract and retain critical senior
executives from within and outside the hospitality industry
by providing a minimum level of fixed compensation
AnnualIncentive
Compensation
• Annual performance-based incentive awards earned under
our Executive Plan or Annual Incentive Plan
• Payouts earned based on performance versus a combination
of adjusted EBITDA and adjusted EPS and individual
performance
• For Mr. Aron, discretionary equity award earned for his
individual performance and the Company’s performance
during 2015
• Directly links the achievement of our financial objectives
and individual performance to executive pay
Long-TermIncentive
Compensation
• Equity compensation awards (consisting of performance
shares and/or restricted stock) made under our 2013 Long-
Term Incentive Compensation Plan (or LTIP)
• Grants of performance shares strongly tie equity
compensation to returns experienced by our stockholders,
providing a direct link between the investment interests of
our stockholders and the compensation interests of our
named executive officers, and restricted stock grants serve
as a strong retention tool for our executive talent
Benefitsand
Perquisites
• Retirement benefits in the form of a tax-qualified 401(k)
plan, a non-qualified deferred compensation plan, a savings
restoration plan, standard health and welfare benefits, and
limited perquisites in the form of relocation assistance, car
service and corporate aircraft use (for Messrs. van
Paasschen and Aron), and (for Mr. van Paasschen) life
insurance premium payments
• Retirement benefits provide tax efficient vehicles to
accumulate retirement savings, subject to limits on
compensation under the Internal Revenue Code (or the
Code) and in excess of those limits
• Limited perquisites help attract and retain named executive
officers
In addition, based on Mr. Van Paasschen’s departure from the Company during 2015, he received cash consulting fees, cash severance and payment for continued
health care coverage after his departure from the Company.
Analysis of 2015 Named Executive Officer Compensation
Total compensation for certain of our named executive officers who were serving with us at both the start and end of 2015 (in other words, Ms. Poulter and Messrs.
Mangas, Rivera, Turner and Schnaid, who we refer to as the continuing named executive officers) was (except for Mr. Schnaid) initially benchmarked against the
peer group identified further below in this report at the 50 th percentile, but individual elements of compensation and
11