Robert Milkovich
About Robert Milkovich
Independent director of KBS Real Estate Investment Trust III, Inc. since November 2022; age 65 as of April 1, 2025. Former CEO/President/Trustee of First Potomac Realty Trust (NYSE:FPO) with 30+ years of commercial real estate leadership across REITs, investment firms, and construction services; B.S. in Business Management from the University of Maryland .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| First Potomac Realty Trust (NYSE:FPO) | CEO, President, Trustee; COO | CEO/President/Trustee: Nov 2015–Oct 2017; COO: Jun 2014–Oct 2017 | Led strategic repositioning; executive leadership; board trustee responsibilities |
| rand* construction corporation | Chief Executive Officer and Board Member | Jan 2019–Dec 2023 | Oversaw strategy, culture, operating businesses |
| Spaulding & Slye Investments (JLL subsidiary) | President; Head of Investment Committee | 2012–2014 | Led investment committee; acquisitions strategy |
| Archon Group, L.P. (Goldman Sachs Merchant Banking) | Regional Director | From 2004 (end date not disclosed) | Asset management of ~$2B; originated opportunities |
| CarrAmerica Realty Corporation | Market Managing Director | Not disclosed | Oversaw asset management, development, portfolio investments |
External Roles
| Organization | Role | Tenure/Status |
|---|---|---|
| Rock Spring Contracting | Chief Operating Officer | Current |
| Boomer Esiason Foundation | Board Member | Current (date not disclosed) |
| The Real Estate Group (Washington, D.C.) | Past President | Historical (dates not disclosed) |
Board Governance
- Independence: Determined independent under KBS charter and NYSE standards .
- Committees: Member, Audit Committee (all members designated “audit committee financial experts”) ; Member, Conflicts Committee (chair: Ron D. Sturzenegger) .
- Attendance: In 2024 the board met 20 times; each director attended at least 75% of board meetings . Audit Committee met 5 times and Conflicts Committee 7 times; each committee member attended at least 75% of their committee meetings . Attended the July 23, 2024 annual meeting (all directors except Mr. Sturzenegger were present) .
- Board leadership: Chairman is Marc DeLuca; CEO is Charles J. Schreiber, Jr. No lead independent director policy; all independent directors actively involved .
- Risk oversight: Audit Committee oversees financial reporting/internal controls; Conflicts Committee oversees independence, affiliate transactions, and executive compensation oversight .
Fixed Compensation
| Component | Structure | Amount (2024) |
|---|---|---|
| Annual cash retainer | $135,000 per independent director | Part of total below |
| Committee membership fees | $10,000 annually per committee member | Part of total below |
| Committee chair fees | $20,000 annually per chair (Audit; Conflicts) | N/A (not a chair) |
| Per-meeting fees (after 10th meeting in calendar year) | Board: $2,500 in-person; $2,000 teleconference; Audit: $2,500/$2,000 (chair $3,000); Conflicts: $2,500/$2,000 (chair $3,000) | Part of total below |
| Total fees earned (cash) | Director-specific total in 2024 | $175,500 (Milkovich) |
- Equity plan: None; no equity compensation arrangements authorized for directors as of Dec 31, 2024 .
Performance Compensation
| Element | Disclosure |
|---|---|
| Performance-linked director compensation (RSUs/PSUs/options; metrics; vesting) | None disclosed; no equity awards or option grants to directors . |
Other Directorships & Interlocks
| Company | Type | Role | Status |
|---|---|---|---|
| First Potomac Realty Trust (NYSE:FPO) | Public REIT | CEO, President, Trustee | Historical (2015–2017) |
| Current public company boards | — | — | None disclosed |
- Interlocks/related-party exposure: No transactions disclosed involving Milkovich’s external affiliations; Conflicts Committee (of which he is a member) reviews/approves affiliate transactions (advisor fees; insurance; leasing to affiliates; Singapore-related arrangements) .
Expertise & Qualifications
- 30+ years in commercial real estate leadership across REITs, capital markets, and construction services .
- Audit Committee financial expert designation (committee-wide) supports financial oversight .
- Education: B.S. Business Management, University of Maryland .
Equity Ownership
| Holder | Shares Beneficially Owned | % of Outstanding | Pledged |
|---|---|---|---|
| Robert Milkovich | 0 (none listed) | <1% | None pledged (table notes: “None of the shares is pledged”) |
Governance Assessment
- Strengths: Independent status affirmed; dual committee roles (Audit and Conflicts) with financial expert designation bolster oversight of reporting and related-party risks . Engagement evidenced by at least 75% attendance on board and committees and presence at the 2024 annual meeting . Prior public REIT CEO/Trustee experience adds material operational insight for an office-focused REIT under stress .
- Alignment concerns (RED FLAG): Director pay is entirely cash with no equity component; Milkovich holds no KBSR shares, weakening pay-for-performance and ownership alignment signals . No hedging policy for officers/directors is disclosed, which is shareholder-unfriendly from an alignment perspective .
- Conflict oversight: As a Conflicts Committee member, he helps supervise advisor compensation, fee deferrals/subordination, and affiliate arrangements—critical given extensive advisor-related fees, subordination agreements, and related-party structures .
- Company risk context: Board faced heavy workload (20 meetings) amid going-concern uncertainty, cash sweeps limiting flexibility, and mandated asset sales tied to loan agreements—elevating the importance of Audit and Conflicts Committee effectiveness where Milkovich serves .