Investor Relations

The Compensation Policy Committee endorses a strong equity ownership policy for all Host employees. The Committee believes that such a policy supports the alignment of the employees' and stockholders' interests. In 2003, the Committee approved a new long-term incentive stock program and approved a stock ownership guideline policy for all Host senior management in this program. Each member of senior management will be subject to an equity ownership guideline that will be established as a multiple of base salary, as follows:

Ownership

Chief Executive Officer: five times base salary
Executive Vice Presidents: three times base salary
Senior Vice Presidents: two times base salary

Attainment of the ownership levels is strongly encouraged within five years for newly hired or newly appointed senior management. Only certain types of equity will be used in determining the ownership level, including stock owned directly by the employee, or through the Company's 401(k), Stock Purchase or deferred stock plans, or as a result of vesting of stock under the Company's long-term incentive stock program. Vested and unvested stock options are excluded from these guidelines.

The Committee will review the Company’s progress in meeting these guidelines annually. Any senior management dispositions will be reviewed at each meeting.

Retention

Under our policy, senior management is permitted to sell equity in excess of the guidelines only upon prior notice to the Committee. All senior management is encouraged to hold equity received from the Company until they leave the Company. Senior management is not permitted to sell equity that is subject to these guidelines if they have not attained the multiples outlined above without the prior consent of the Committee, which will only be granted under special circumstances.