Lack of Committee Independence
Thomas J. Donahue, Craig R. Callen, and Ronald V. Aprahamian comprise both the audit committee and the compensation committee at Sunrise. Each has or has recently had more than a trivial connection to Sunrise and its executive officers:
- Mr. Donahue has numerous personal and business connections to co-founder, chairman, and CEO Paul Klaassen and co-founder, director, chief cultural officer, executive vice president, and secretary Teresa Klaassen. Mr. Klaassen previously worked for Mr. Donahue at the U.S. Chamber of Commerce, and he and his wife lived with Mr. Donahue for a time. Mr. Donahue invested in the Klaassen's first home.
- Mr. Callen and/or his employers, Donaldson, Lufkin & Jenrette Securities Corporation, Credit Suisse First Boston, and Aetna, have done business with Sunrise Senior Living during virtually his entire tenure on the board.
- Mr. Aprahamian was a consultant to Sunrise Senior Living for several years while he was also a director.