8-KLeadership ChangesExhibits & Filings

Extra Space Storage Inc. 8-K Report, Executive Changes (Dec 9, 2011)

Filed December 9, 2011For Securities:EXR

Summary

This 8-K filing from Extra Space Storage Inc. (EXR) on December 9, 2011, details significant changes in its executive management team. Notably, Kenneth M. Woolley will transition to Executive Chairman and Chief Investment Officer in Q3 2012, while Spencer F. Kirk remains CEO. A key change is the departure of Kent W. Christensen as Executive Vice President and CFO, effective December 5, 2011. Scott Stubbs has been appointed as the new EVP and CFO, with a base salary of $300,000 and eligibility for bonuses and standard executive benefits. The departure of Mr. Christensen comes with a separation agreement, including a severance payment of approximately $1.2 million, accelerated vesting of certain stock options and restricted stock, and up to twelve months of COBRA coverage. The company expects to incur a one-time charge of approximately $2.2 million in Q4 2011 related to this separation.

Key Highlights

  • 1Executive management restructuring announced with a planned transition for Kenneth M. Woolley to Executive Chairman and Chief Investment Officer in Q3 2012.
  • 2Spencer F. Kirk will continue as Chief Executive Officer.
  • 3Kent W. Christensen has departed as Executive Vice President and Chief Financial Officer, effective December 5, 2011.
  • 4Scott Stubbs appointed as the new Executive Vice President and Chief Financial Officer, effective December 6, 2011, with an annual base salary of $300,000.
  • 5Kent W. Christensen receives a separation package including approximately $1.2 million in severance, accelerated stock vesting, and extended health benefits.
  • 6Extra Space Storage Inc. anticipates a one-time charge of approximately $2.2 million in the fourth quarter of 2011 related to the CFO's departure.
  • 7The filing includes the press release announcing these changes and the Separation and Release Agreement with Kent W. Christensen.

Frequently Asked Questions

The company announced a restructuring of its executive management. Kenneth M. Woolley will move to Executive Chairman and Chief Investment Officer in Q3 2012, while Spencer F. Kirk remains CEO. Kent W. Christensen has departed as CFO, and Scott Stubbs has been appointed as the new CFO.

Extra Space Storage Inc. expects to incur a one-time charge of approximately $2.2 million in the fourth quarter of 2011 due to Mr. Christensen's separation. This charge includes his severance payment and costs associated with accelerated stock vesting.

Mr. Christensen received a one-time severance payment of approximately $1.2 million, payable in 2011. He also received accelerated vesting for certain stock options and restricted stock, and up to twelve months of COBRA health coverage.

Scott Stubbs has been appointed Executive Vice President and Chief Financial Officer. His annual base salary is $300,000, and he is eligible for an annual bonus and participates in the company's executive benefit plans.