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2000 CFO Pay: Host Marriott’s Parsons Pulled Down Nearly $2 Million

Bonus is higher than his salary
Michelle GabrielleApril 16, 2001

Host Marriott Corp.’s EVP, CFO and corporate secretary Robert E. Parsons, Jr. earned nearly $2 million last year, according to the company’s recently released proxy.

In 2000, Parsons earned $534,000 in bonus and $53,995 in other compensation (from company contributions toward a retirement, savings and compensation plan) on top of his salary of $445,000. In addition, the Bethesda, Md.-based real estate investment trust awarded him $812,991 in restricted stock. Total Compensation: $1,845,986.

In 1999, Parsons’ bonus was also greater than his salary. The bonus was $455,681 compared to a salary of $424,996. He also received $42,572 in other compensation and $947,318 in a long-term pay-out, which brought his total compensation to $1,870,567, just a tad higher than last year’s.

Parsons has spent the past 20 years at the company. He joined the financial planning staff in 1981 and was named assistant treasurer in 1988. In 1993, he was appointed SVP and treasurer, and in 1995, he was elected EVP and CFO. In February 2000, he was given the added title and position of corporate secretary.

In 2000, Host Marriott Corp. earned $156 million on revenue of $1.44 billion, a 5.6 percent increase over 1999’s income of $196 million on revenue of $1.37 billion. According to the company, revenues reflect rental income from leases, which are calculated based on hotel-level sales.

Commenting on the company’s financial situation, Parsons recently stated, “Our financial strategy has focused on maintaining a strong balance sheet, which provides us with the continued flexibility to execute our corporate strategy. During the year, we completed a $150 million stock buy- back program by acquiring approximately 16 million shares, refinanced and extended our line of credit to achieve more flexible terms, and completed a $250 million debt offering.”