8-KLeadership Changes

Extra Space Storage Inc. 8-K Report, Executive Changes (Feb 23, 2009)

Filed February 23, 2009For Securities:EXR

Summary

This Form 8-K filing by Extra Space Storage Inc. (EXR) primarily announces changes in executive leadership and the associated compensation packages. Effective April 1, 2009, Spencer F. Kirk will transition from his current role to become the Chairman and Chief Executive Officer, succeeding Kenneth M. Woolley. This leadership transition is accompanied by a new compensation structure for Mr. Kirk, designed to align his incentives with both individual performance and the company's financial success. The compensation package includes an annual base salary, an incentive bonus tied to performance goals (including a specific Funds from Operations target), and equity awards in the form of restricted stock and stock options. These awards are subject to a four-year vesting schedule, demonstrating a commitment to long-term performance and shareholder value.

Key Highlights

  • 1Spencer F. Kirk to succeed Kenneth M. Woolley as Chairman and CEO, effective April 1, 2009.
  • 2Kirk's new compensation package includes an annual base salary of $400,000.
  • 3Kirk is eligible for an annual incentive bonus up to 100% of his base salary, tied to individual and company financial performance.
  • 4The financial performance component of the bonus is specifically linked to achieving a Funds from Operations (FFO) target.
  • 5Kirk was granted 58,000 shares of restricted stock and options to purchase 130,000 shares at $6.22 per share.
  • 6The restricted stock and options vest ratably over four years.
  • 7No written employment agreement has been entered into between the Company and Mr. Kirk.

Frequently Asked Questions

The most significant leadership change is that Spencer F. Kirk will become the new Chairman and Chief Executive Officer of Extra Space Storage Inc. on April 1, 2009, succeeding Kenneth M. Woolley.

Mr. Kirk will receive an annual base salary of $400,000. He is also eligible for an annual incentive bonus of up to 100% of his base salary, which will be determined by achieving specified individual performance goals (50%) and the company's financial operating performance, specifically a Funds from Operations (FFO) target (50%).

On February 17, 2009, Mr. Kirk was granted 58,000 shares of restricted stock and options to purchase 130,000 shares of common stock at an exercise price of $6.22 per share. These awards will vest ratably over four years from the date of grant.

The filing states that the Company and Mr. Kirk have not entered into a written employment agreement at this time.