Starwood 2015 Annual Report Download - page 20

Table of Contents
Mr. Turner’s key accomplishments for the 2015 performance year:
• Exceeded Company objectives for new hotels by signing a record number of 220 incremental management and franchise deals (representing
approximately 45,800 rooms), while achieving record contract value for SG&A expenses;
• Exceeded Company objectives for renewals and change of ownership deals, signing 101 non-incremental hotel management and franchise deals
(representing approximately 29,600 rooms);
• Opened a record number of new hotels, adding 105 hotels (representing approximately 22,500 rooms) to the Company’s footprint, the result of prior
years’ deal signings; and
• Exceeded asset disposition targets, generating over $820 million in gross proceeds from the sale of wholly owned hotels and other property ownership
interests, and positioned certain of the Company’s owned hotels for 2016 strategic disposition.
As discussed above, certain business events during 2015 prompted our named executive officers to focus on priorities significantly different from those listed
above. To that end, while the individual performance achievements described above were factors in determining final annual incentive award payouts for the
continuing named executive officers for 2015, they were only a part of the overall consideration with respect to the individual performance portion of the annual
incentives.
In light of the Compensation Committee’s assessments of the continuing named executive officers’ overall performance for 2015 (other than Mr. Schnaid), the
Compensation Committee awarded them the following payouts as a percentage of target for the individual performance portion of their annual incentives:
Mr. Mangas, 175% of target; Ms. Poulter, 100% of target; Mr. Rivera, 105% of target; and Mr. Turner, 120% of target. As a result, these continuing named
executive officers and Mr. Aron received the following total annual incentives, expressed in dollars and as a percentage of overall annual incentive target:
Mr. Mangas, $847,875, representing 121% of his overall annual incentive target; Ms. Poulter, $714,000, representing 102% of her overall annual incentive target;
Mr. Rivera, $774,248, representing 103% of his overall annual incentive target; Mr. Turner, $821,227, representing 107% of his overall annual incentive target; and
Mr. Aron, $2,040,000, representing 102% of his overall annual incentive target. In light of Mr. van Paasschen’s separation arrangement and our financial
performance for 2015 under the Annual Incentive Plan, the Compensation Committee provided him with a cash severance payment equal in value to one-sixth of
what the Compensation Committee determined he would have earned as his 2015 incentive under the Annual Incentive Plan had he remained employed for the
entirety of 2015 based on actual performance results ($425,000).
2015 Annual Bonus Compensation for Mr. Schnaid . Mr. Schnaid received his annual cash incentive award opportunity for 2015 under the Annual Incentive Plan.
Mr. Schnaid’s 2015 target incentive opportunity was established at 65% of his base salary (consistent with his award in prior years), and his opportunity ranged
from 0% to 200% of this target amount. This incentive opportunity level was set at the target annual incentive level established for other Company employees
within the same salary range (or band) as Mr. Schnaid. This level is checked by the Company for general purposes against market every one to three years by using
the Towers Watson survey information for companies with revenues similar to us (as discussed above). This evaluation for annual incentive purposes was last
conducted in 2014 with respect to the range as a whole, rather than specific job titles or responsibilities. For this evaluation purpose, no peer group was used, as it
was the compensation data produced by the survey information among companies with revenue in excess of $5 billion included in a general industry survey
provided by Towers Watson, rather than the identity of the individual companies participating in the survey, that was the most significant factor under this general
review.
At the beginning of 2015, the Principal Accounting Officer goals under the Executive Plan were identified as general (rather than specific) guidelines for
Mr. Schnaid’s performance during 2015. In addition, Mr. Schnaid was generally aware of both the adjusted EPS and adjusted EBITDA goals established under the
Executive Plan as
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