Business Context and Reporting Period
This Form 8-K was filed by Sunstone Hotel Investors, Inc. on February 8, 2006. The report discloses the entry into a material definitive agreement regarding executive compensation adjustments and the approval of annual incentive bonuses for the 2005 fiscal year.
Key Financial Metrics
The filing does not provide consolidated financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation figures.
- CEO Base Salary (Robert A. Alter): $572,000 (effective Jan 1, 2006)
- CFO Base Salary (Jon D. Kline): $390,000 (effective Jan 1, 2006)
- CIO Base Salary (Gary A. Stougaard): $364,000 (effective Jan 1, 2006)
- CEO 2005 Bonus: $653,125
- CFO 2005 Bonus: $445,313
- CIO 2005 Bonus: $415,625
- CEO Deferred Compensation: Approximately $47,275
Material Changes
The Compensation Committee increased the annual base salary rates for three named executive officers by 4%, effective January 1, 2006. Additionally, discretionary annual incentive bonuses for the 2005 fiscal year were approved based on subjective performance evaluations and objective business criteria.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, outlook, or discussion of risks and contingencies. The compensation decisions were based on the Compensation Committee's subjective evaluations of personal job performance and the Company's performance against objective business criteria.
Investor Verification Checklist
- Verify the impact of the 4% salary increase on the company's total compensation expense for 2006.
- Confirm the specific objective business criteria used to determine the 2005 incentive bonuses.
- Review the employment agreements to understand the terms of the matching deferred compensation awarded to the CEO.
- Check subsequent filings for the actual payout dates of the approved bonuses.