Starwood 2011 Annual Report Download - page 51

employee stock options and restricted stock did not receive this consideration while the market price of
shares was reduced to reflect the payment of this consideration directly to the holders of the Class B Shares.
In order to preserve the value of the Company’s options immediately before and after the Host transaction,
the Company adjusted its stock options to reduce the strike price and increase the number of stock options
using the intrinsic value method based on the share price immediately before and after the transaction. The
option information provided reflects the number of options granted and the option exercise prices after these
adjustments were made. As of December 31, 2011, this impacts Mr. Prabhu’s holdings only.
(2) These options generally vest in equal installments on the first, second, third and fourth anniversary of their
grant. As of September 4, 2010, Mr. Siegel’s 2008, 2009, 2010 and 2011 awards vest quarterly in equal
installments over four years due to his retirement-eligible status, as defined in the LTIP. As of December 15,
2014, Mr. Prabhu’s awards will vest quarterly due to his retirement-eligible status, as defined in the LTIP.
(3) For awards granted in 2008, the restricted stock or restricted stock units generally vest 75% on the third
anniversary and 25% on the fourth anniversary of the date of grant. For awards granted in 2009, 2010 and
2011, the restricted stock or restricted stock units generally vest 100% on the third anniversary of their
grant. As of September 4, 2010, Mr. Siegel’s 2008, 2010 and 2011 awards vest quarterly in equal
installments due to his retirement eligible status, as defined in the LTIP.
(4) These restricted stock units vest in equal installments on the first, second and third fiscal year-ends
following the date of grant, and are distributed on the earlier of: (a) the third fiscal year-end or (b) a
termination of employment. Shares underlying the restricted stock units that vested as of December 31,
2011, but which shares will not be distributed to the Named Executive Officers until either December 31,
2012 or 2013, are non-forfeitable with respect to each Named Executive Officer and will be included in the
2011 Option Exercises and Stock Vested table for the year in which they are settled.
VIII. 2011 OPTION EXERCISES AND STOCK VESTED
The following table discloses, for each Named Executive Officer, (i) option awards representing shares
acquired pursuant to exercise of stock options during 2011; and (ii) stock awards representing (A) shares of
restricted stock that vested in 2011 and (B) shares acquired in 2011 on account of vesting of restricted stock
units. The table also discloses the value realized by the Named Executive Officer for each such event, calculated
prior to the deduction of any applicable withholding taxes and brokerage commissions.
Option Awards Stock Awards
Name
Number of Shares
Acquired on
Exercise
(#)
Value Realized
on Exercise
($)
Number of Shares
Acquired on
Vesting
(#)
Value Realized
on Vesting
($)
van Paasschen ......................... — — 88,662 4,017,527
Avril ................................. 96,074 4,379,200 84,088 4,168,058
Prabhu ............................... 108,621 4,083,261 55,111 3,143,017
Siegel ................................ — — 43,852 2,186,718
Turner ............................... 18,385 925,041 12,984 628,296
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