Business

Extended Stay America’s CEO sees 32% pay cut in 2014

The head of Charlotte-based Extended Stay America had a pay cut of almost 32 percent last year as the company works to improve its profits less than two years after going public.
The head of Charlotte-based Extended Stay America had a pay cut of almost 32 percent last year as the company works to improve its profits less than two years after going public. Bloomberg News

The head of Charlotte-based Extended Stay America had a pay cut of almost 32 percent last year as the company works to improve its profits less than two years after going public.

CEO James Donald, the former chief executive at Starbucks, was paid $934,103 last year, down from the $1.37 million he made in 2013, according to a securities filing Tuesday.

Donald’s pay included $900,000 in salary and $34,103 in perks and other compensation, according to the annual proxy filing.

The company also said Donald was entitled to reimbursement of all “documented, reasonable transportation expenses” related to his travel to Charlotte from Seattle, as well as complimentary lodging at an Extended Stay hotel.

Extended Stay said in the filing that its annual shareholders meeting will be held May 21 at the Everett Building, Suite 100, 11525 N. Community House Road, Charlotte.

Extended Stay America, which went public in November 2013, has had a rocky corporate history. Extended Stay went private in 2004 when it was bought by the Blackstone Group private equity firm. The company was then sold in 2007 to a real estate firm for $8 billion but filed for bankruptcy two years later under a heavy debt load. A group of private equity firms, including Blackstone, bought the company out of bankruptcy in 2010.

Donald, 61, was president and CEO of Starbucks Corp. from 2005 until 2008.

Extended Stay America recently reported that it made $28 million in the fourth quarter of 2014 after incurring a loss of $15 million in the same period in 2013. The company reported full-year income of $150.6 million, up $67.9 million from 2013.

In 2014, Extended Stay America’s shares declined 27 percent, compared with a 4 percent rise among other companies in the New York Stock Exchange. The company’s shares closed Wednesday at $20.17, just above the $20 price when it went public.

The company operates 682 hotels in the U.S. and Canada, with a focus on customers traveling for business, looking for temporary housing or needing other longer-term stays.

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