Ron Sturzenegger
About Ron D. Sturzenegger
Ron D. Sturzenegger, age 65 as of April 1, 2025, has served as an independent director of KBS Real Estate Investment Trust III, Inc. (KBSR) since August 2019, bringing over 30 years of real estate and financial services experience from senior roles at Bank of America, Morgan Stanley, and Bain & Company . He holds a B.S. in Industrial Engineering from Stanford University and an MBA from Harvard Business School . His background includes leading enterprise integration and legacy asset servicing at Bank of America, with responsibilities spanning mortgage remediation, loan servicing, and regulatory process development, experience that the board cites among the reasons for his qualification as an independent director .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Bain & Company | Financial Analyst | 1982–1984 | Early analytical foundation |
| Morgan Stanley | Real Estate Investment Banking (various roles) | 1986–1998 | Built real estate IB expertise |
| Bank of America Securities | Head of Real Estate Mergers & Acquisitions | 1998–2001 | Led RE M&A |
| Bank of America Securities | MD & Global Head, Real Estate, Gaming & Lodging IB | 2002–2008 | Sector global leadership |
| Bank of America Merrill Lynch | MD & Global Head, Real Estate, Gaming & Lodging IB | 2009–2011 | Continued sector leadership |
| Bank of America (Management Committee) | Legacy Asset Servicing Executive | 2011–2015 | Led mortgage remediation post-Countrywide/Merrill; loan servicing; regulatory process improvements (robo-signing) |
| Bank of America | Enterprise Business & Community Engagement Executive | 2014–2018 | Led enterprise integration across 90 U.S. markets; oversaw Market Presidents Organization |
External Roles
| Organization | Role | Start | Committees/Chair Roles |
|---|---|---|---|
| StepStone Private Markets (board of trustees) | Independent Trustee | Jan 2020 | Audit; Independent Trustees (Chair); Nominating & Governance |
| StepStone Private Venture and Growth Fund (board of trustees) | Independent Trustee | Jun 2022 | Audit; Independent Trustees (Chair); Nominating & Governance |
| StepStone Private Infrastructure Fund (board of trustees) | Independent Trustee | Jun 2023 | Audit; Independent Trustees (Chair); Nominating & Governance |
| StepStone Private Credit Income Fund (board of trustees) | Independent Trustee | Feb 2024 | Audit; Independent Trustees (Chair); Nominating & Governance |
| Elme Communities (Board) | Independent Trustee; Transaction Committee member | Mar 2025 | Transaction Committee member |
| Fisher Center for Real Estate & Urban Economics (policy advisory board) | Executive Committee | N/A | Executive Committee member |
| Stanford Professionals in Real Estate | Advisory Board Member | N/A | Advisory board member |
| Stanford University Parents’ Advisory Board | Former Co-Chair (with spouse) | Prior service | Governance/engagement role |
Board Governance
- Independence: The board has determined Mr. Sturzenegger is independent under KBSR’s charter and NYSE standards, alongside independent directors Stuart A. Gabriel and Robert Milkovich .
- Committees: He serves on the Audit Committee (all members are independent and qualify as SEC “audit committee financial experts”) and chairs the Conflicts Committee (all independent) .
- Conflicts Committee duties and activity: The committee reviews policies, approves affiliated transactions and reports on fairness, supervises and evaluates the advisor’s performance/compensation, reviews expenses, approves certain borrowings, and oversees compensation responsibilities; in 2024 it held seven meetings (plus consents), with each member attending at least 75% .
- Audit Committee activity: In 2024 the Audit Committee held five meetings (plus one unanimous consent), with each member attending at least 75%; it recommended inclusion of 2024 audited financials in the Form 10-K after discussions with EY on independence and reporting matters .
- Board meeting cadence and attendance: The board held 20 meetings in 2024 (plus consents), and each director attended at least 75% of board meetings .
- Annual meeting attendance: All directors except Mr. Sturzenegger were present at the July 23, 2024 annual meeting (no formal attendance policy; expectation that the Chair attends) .
- Nominations: No standing nominating committee; the Conflicts Committee selects/nominees replacements for independent director vacancies, mitigating advisor conflict risks in director selection .
Fixed Compensation
| Component | 2024 Amount | Notes |
|---|---|---|
| Annual retainer (independent directors) | $135,000 | Cash |
| Audit Committee membership fee | $10,000 | Chair is $20,000; members $10,000 |
| Conflicts Committee membership fee | $10,000 | Chair is $20,000; he is Conflicts Chair (so $20,000 for this committee) |
| Per-meeting fees (after 10th meeting) | $2,500 in-person; $2,000 teleconference | Applies to Board, Audit, Conflicts; Audit/Conflicts Chairs receive $3,000 per meeting after 10th for their committee |
| Expense reimbursement | Reasonable out-of-pocket expenses | Standard practice |
| Total fees earned (Ron D. Sturzenegger) | $185,500 (2024) | Cash, no equity |
Performance Compensation
| Item | Status/Terms |
|---|---|
| Equity compensation plan (directors/executives) | None authorized as of Dec 31, 2024 |
| Stock options | Not granted; no option timing policy needed |
| Performance metrics tied to director pay | Not disclosed; director pay is cash retainers/fees (no PSUs/RSUs/options) |
| Clawback/COC/SERP/Other director-specific provisions | Not disclosed for directors (company has no paid employees; execs compensated by advisor) |
Implication: Director pay is entirely cash-based with no equity-at-risk, limiting direct alignment to shareholder returns; absence of a director equity plan removes performance-linked incentives even as committee workloads (and per-meeting fees) can elevate cash compensation .
Other Directorships & Interlocks
| Company/Entity | Nature | Potential Interlock Considerations |
|---|---|---|
| Elme Communities | Independent Trustee; Transaction Committee member (since Mar 2025) | Additional REIT governance exposure; no related-party transactions with KBSR disclosed . |
| StepStone fund boards (multiple) | Independent Trustee; Chair of Independent Trustees Committees | Overlapping governance roles in investment vehicles; no KBSR interlocks disclosed . |
Expertise & Qualifications
- Real estate capital markets leadership: Former Global Head of Real Estate, Gaming & Lodging IB at Bank of America Securities/Merrill Lynch; prior RE M&A head .
- Regulatory and remediation experience: Led Legacy Asset Servicing addressing mortgage issues and regulator concerns (including robo-signing) post-crisis at Bank of America .
- Enterprise integration: Led integration of products/services across 90 U.S. markets and oversaw Market Presidents Organization .
- Education: BS, Industrial Engineering (Stanford); MBA (Harvard Business School) .
Equity Ownership
| Holder | Shares Beneficially Owned | % Outstanding | Notes |
|---|---|---|---|
| Ron D. Sturzenegger | — | — | Indicates zero shares; none pledged |
| KBS Capital Advisors LLC | 20,857 | <1% | Indirectly controlled by CEO Charles J. Schreiber, Jr.; none pledged |
Policies: The company has no hedging policy for officers/directors at this time; also, it does not grant stock options currently .
Alignment note: No director equity plan and zero personal ownership for Mr. Sturzenegger reduce “skin-in-the-game” alignment, though the advisor holds a de minimis stake and none of the shares are pledged .
Governance Assessment
-
Strengths
- Independence and oversight: Mr. Sturzenegger meets charter and NYSE independence standards and chairs the Conflicts Committee that oversees related-party transactions and advisor compensation, a critical role for an externally advised REIT .
- Financial oversight: Audit Committee member with SEC “financial expert” qualification; committee engaged with EY on independence and recommended inclusion of audited financials in the 10-K, supporting financial reporting integrity .
- Engagement breadth: Significant external governance roles (StepStone fund boards, Elme Communities) bring diversified perspective to KBSR’s board .
-
Risks/Red Flags
- Ownership alignment: No equity compensation plan and zero personal share ownership reported for Mr. Sturzenegger reduce direct alignment with shareholder returns, a common investor concern in externally advised REITs .
- Cash-heavy pay: Director compensation is entirely cash-based (retainer, committee fees, per-meeting fees), potentially emphasizing activity over performance alignment; Mr. Sturzenegger earned $185,500 in 2024 .
- Annual meeting absence: He did not attend the July 23, 2024 annual meeting while all other directors did, a modest engagement flag even though the board reports at least 75% meeting attendance overall and on committees .
- Related-party structure: As an externally advised REIT, KBSR relies on the Conflicts Committee (chaired by Mr. Sturzenegger) to review affiliate transactions, advisor fees (including reimbursements tied to the advisor’s employee retention program via the “Bonus Retention Fund”), and fairness—effective oversight is essential to mitigate inherent conflicts .
Bottom line: Mr. Sturzenegger brings deep real estate and regulatory remediation experience and plays a central role in conflict oversight and financial reporting, but the absence of equity-based director compensation and zero personal ownership present alignment optics that investors often scrutinize in externally advised REITs .