Kite Realty Group Trust 2006 Executive Officer Bonus Benchmarks Schedule
Kite Realty Group Trust's Compensation Committee set benchmarks for determining 2006 bonuses for executive officers, excluding the Chairman, whose bonus is decided separately. Bonuses are based on both corporate and individual performance, with key measures including Funds From Operations, new development projects, and property acquisitions. The bonus amounts, as a percentage of base salary, vary by position and are paid in early 2007. For most executives, 80% of the bonus is tied to corporate goals, while the CEO's bonus is based solely on corporate performance.
Exhibit 10.2
Kite Realty Group Trust
Schedule of 2006 Bonus Benchmarks for Executive Officers
On June 30, 2006, the Compensation Committee (the “Committee”) of the Board of Trustees of Kite Realty Group Trust (the “Company”) approved the establishment of benchmarks to determine the 2006 bonuses for the Company’s executive officers other than Alvin E. Kite, Jr., the Company’s Chairman, whose bonus the Committee decided to determine separately on an annual basis. The Company expects to pay the 2006 bonuses in early 2007. The Company’s executive officers participate in the Kite Realty Group Trust Executive Bonus Plan, filed on August 20, 2004 as Exhibit 10.27 to the Company’s Current Report on Form 8-K.
The Committee determined that the 2006 annual bonuses will be based on objective and subjective criteria and both corporate and individual performance. The principal corporate performance measures will be:
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| (i) Funds From Operations (FFO), a widely accepted supplemental measure of REIT performance established by the National Association of Real Estate Investment Trusts (to be determined prior to any impairment losses and adjusted for the effects of any equity offerings); |
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| (ii) new development projects; and |
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| (iii) acquisitions of properties. |
The Committee will measure corporate and individual performance to determine whether the individual has earned a “threshold,” “target,” “superior,” or “outperformance” bonus.
The range of bonuses for each of the Company’s executive officers, other than Alvin E. Kite, Jr., expressed as a percentage of the individual’s base annual salary, is expected to be as set forth below
| Name and Principal Position |
| 2006 Bonus |
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| Mr. John A. Kite |
| 0-200% of 2006 base salary |
| President and Chief Executive Officer |
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| Mr. Thomas K. McGowan |
| 0-175% of 2006 base salary |
| Executive Vice President and Chief Operating Officer |
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| Mr. Daniel R. Sink |
| 0-125% of 2006 base salary |
| Senior Vice President and Chief Financial Officer |
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The Committee determined that in the case of Thomas K. McGowan, the Company’s Executive Vice President and Chief Operating Officer, and Daniel R. Sink, the Company’s Senior Vice President and Chief Financial Officer, approximately 80% of their bonuses will be based on achievement of corporate goals, with the remainder of their bonus based on the achievement of individual goals. In the case of John A. Kite, the Company’s President and Chief Executive Officer, the Committee determined that his bonus will be based entirely on the achievement of corporate goals.
