NEW YORK (AP) - The chairman and chief executive of Developers Diversified
Realty Corp., a shopping center real estate investment trust, received
compensation valued at $10.9 million in 2007, according to a regulatory filing
Thursday.
Scott A. Wolstein's pay package was nearly double his 2006 pay package,
which totaled $5.8 million.
He received a base salary of $880,500, a 37 percent increase over his base
pay in 2006. The Beachwood, Ohio-based company noted that Wolstein's salary was
raised during a review of similar companies' compensation packages. The CEO also
agreed to forego certain life insurance benefits.
Wolstein also received a cash and stock bonus valued at $700,000 and an
additional performance-based award of $1 million.
The CEO's other compensation totaled $1.4 million, which included about
$668,000 for his personal use of company airplanes, about $31,000 for his
personal use of a company car and $650,000 instead of the life insurance
benefits. Developers said it has no further obligation to provide the life
insurance benefits after 2007.
Wolstein's compensation was boosted by stock awards that were valued by the
company at $6.9 million on the day they were granted.
The AP's total pay calculations include executives' salary, bonus,
incentives, perks, above-market returns on deferred compensation and the
estimated value of stock options and awards granted during the year. The
calculations don't include changes in the present value of pension benefits, and
they sometimes differ from the totals companies list in the summary compensation
table of proxy statements filed with the Securities and Exchange Commission.
In 2007, Developers Diversified Realty's funds from operations, or FFO,
jumped 19 percent to $516 million, or $3.79 per share. FFO, which adds such
items as amortization and depreciation to net income, is considered a key
measure of REIT strength.
Net income available to common shareholders rose 14 percent to $225.1
million, or $1.85 per share.
The company's shares dropped about 47 percent, from a high of $72.33 on Feb.
9, 2007, to close at $38.29 at the end of the year.
At the Developers Diversified Realty's annual meeting on May 13,
shareholders will consider an amendment to the company's articles of
incorporation to adopt a majority vote standard in uncontested board elections.
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