Starwood 2007 Annual Report Download - page 40

Name 2006 Amount Deferred 2007 Amount Deferred
Van Paasschen ............................... — 134,600
Ouimet..................................... 188,125 213,028
Prabhu ..................................... 189,280 183,603
Siegel...................................... 168,480 195,013
Gellein ..................................... 246,750 —
Duncan .................................... — 240,000
Heyer...................................... — —
(4) Pursuant to SEC rules, perquisites and personal benefits are not reported for any Named Executive Officer for
whom such amounts were less than $10,000 in the aggregate for 2007 and 2006 but must be identified by type
for each Named Executive Officer for whom such amounts were equal to or greater than $10,000 in the
aggregate. In that regard, the All Other Compensation column of the Summary Compensation Table includes
perquisites and other personal benefits consisting of the following: annual physical examinations, COBRA
premiums paid by the Company, Company contributions to the Company’s tax-qualified 401(k) plan, country
club dues, dividends on restricted stock, legal fees paid by the Company, personal use of Company automobiles,
rent and utilities paid by the Company, spousal accompaniment while on business travel, and tax and financial
planning services. SEC rules require specification of the cost of any perquisite or personal benefit when this
cost exceeds $25,000. This applies to Mr. Heyer’s personal travel (discussed below). It also applies to
Mr. Ouimet’s commuting via commercial air carriers and chartered aircraft, which had an aggregate cost of
$892,204 ($53,594 commercial, based on actual ticket cost, and $838,610 charter, based on actual charter fees)
in 2007 and $197,036 ($33,130 commercial, based on actual ticket cost, and $163,906 charter, based on actual
charter fees) in 2006, and his relocation benefits, which had an aggregate cost 2006 of $122,756 (the amount
paid to the relocation company) and $68,547 in 2007. These amounts are included in the All Other
Compensation column.
The amount reported as All Other Compensation for Mr. Heyer does not include business travel expenses
incurred by Mr. Heyer that the Company determined do not constitute perquisites or personal benefits. For
example, the employment agreement between the Company and Mr. Heyer provided that in addition to
Mr. Heyer’s office at the Company’s headquarters in White Plains, New York, the Company would provide
Mr. Heyer with an office in Atlanta and reimburse Mr. Heyer for travel from the Company’s Atlanta office to the
Company’s headquarters office in White Plains, not exceeding an average of one round trip per week. For
income tax purposes, Mr. Heyer is a resident of the State of Georgia. The net aggregate incremental cost to the
Company for (i) Mr. Heyer’s travel on the Company-owned airplane or chartered aircraft between New York
and Atlanta, (ii) the use of a car and driver while in New York, and (iii) stays at our hotels in the New York area
was $349,869 in 2007 and $866,178 in 2006. The net aggregate incremental cost of Mr. Heyer’s personal use of
the Company-owned plane and chartered aircraft was $33,122 in 2007 and $284,669 in 2006. The value of the
hotel stays for Mr. Heyer was determined on the same basis as payments to hotels for guests staying under the
Starwood Preferred Guest Program. Chartered aircraft were used when the Company-owned airplane was out of
service. The Company’s use of chartered aircraft increased in 2006 because maintenance issues caused the
Company-owned airplane to be out of service. The Company received a recovery from the maintenance
company, and the amount of the recovery been taken into account to reduce the cost reported for personal use of
the airplane as well as for the trips between New York and Atlanta for Mr. Heyer.
Prior to his promotion to President — Global Development Group, Mr. Gellein was Chairman and Chief
Executive Officer of Starwood Vacation Ownership, Inc. (Formerly Vistana, Inc.), the Company’s vacation
ownership subsidiary, and maintained an office at its headquarters in Orlando, Florida. The aggregate
incremental cost to the Company without deducting costs attributable to business use for (i) Mr. Gellein’s
travel on the Company-owned airplane or chartered aircraft between New York and Orlando, (ii) ground
transportation costs and (iii) stays at our hotels in the New York area was $1,092,081 in 2007 and $418,599 in
2006. The value of the hotel stays for Mr. Gellein was determined based on the actual amounts billed to
Mr. Gellein and reimbursed by the Company.
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