This excerpt taken from the EQR DEF 14A filed Apr 17, 2008.
Executive Performance in 2007
As Chief Executive Officer and President, Mr. Neithercut has responsibility for Company financial performance, overall Company goals and department objectives. He was directly involved in the results detailed in Company Performance in 2007 above. Mr. Neithercut worked closely with each of the executive officers in formulating department objectives and tracking performance on those objectives throughout the year. He is accountable, along with each executive officer, for the achievement of those objectives.
Performance of the Chief Operating Officer was determined by Mr. Neithercuts assessment of achievement of the Companys goals and those department goals for which Mr. Spector had functional responsibility: Property Management, Facilities Management, Revenue and Information Technology. Mr. Spectors contributions in 2007, as in prior years, extended beyond his functional areas to achievement of overall financial results and participation in investment decisions that support portfolio transformation and increased development.
As Executive Vice President and Chief Investment Officer, Mr. George was responsible for contributing to the overall financial results of the Company and achievement of overall Company goals, as well as achievement of departmental goals and objectives in the areas of Transactions and the Condominium Division. He has direct responsibility for an exceptional volume of property acquisitions and dispositions that achieved the financial results and portfolio transformation detailed in Company Performance in 2007 above. Acquisitions totaled $1.7 billion including numerous assets in core markets considered to have high barriers to entry. Dispositions, mostly of assets in the Companys non-core markets, totaled $1.9 billion, generating an unleveraged internal rate of return of 11.1% on the Companys investment. And as mentioned, the Condominium Division sold 617 units for $164.2 million.
Mr. Tuomi, Executive Vice President and President Property Management, is responsible for contributing to the overall financial results of the Company and achievement of overall Company goals, as well as achievement of departmental goals and objectives in Property Management. He has direct responsibility for rental income and related revenues, property operating expenses, on-site customer service and leadership of property management employees across the entire Company portfolio. The Companys operations achieved a 4.3% increase in same-store revenue while holding the same-store expense increase to 2.1%. These achievements had a significant impact on the Companys financial results, including a 5.6% increase in same-store net operating income.
Mr. Tuomi also participated in the achievement of significant objectives, including implementation of an improved performance management program for Property Management and strong employee engagement detailed in Company Performance in 2007 above. He contributed to the Companys portfolio transformation and increased development as well.
As Executive Vice President and Chief Financial Officer, a position he assumed in October 2007, Mr. Parrell is responsible for contributing to the overall financial results of the Company and achievement of overall Company goals. He is also responsible for achievement of departmental goals and objectives in the areas of Accounting, Budgeting, Investor Relations, Tax and Treasury, as well as having administrative responsibility for Internal Audit. Both as Chief Financial Officer, and in his previous role as Senior Vice President and Treasurer, Mr. Parrell contributed to achievement of the financial results detailed in Company Performance in 2007 above. In addition, he directed achievement of significant goals and objectives in his functional areas. These included overseeing the completion of $1.8 billion in 1031 like-kind exchanges necessitated by the sale of the Lexford Division; managing relationships with rating agencies, secured lenders and banks; timely Sarbanes-Oxley compliance testing without material exception; and more clearly articulating the Companys strategy and accomplishments to the investment community.
The assessments of Company and individual executive performance are factors in determining each of the elements of executive compensation below, along with such factors as Company financial results and shareholder returns.