Park Place CEO nets more than $5 million

Friday, March 31, 2000 | 10:58 a.m.

Park Place Entertainment Corp. Chief Executive Arthur Goldberg received $5.07 million in compensation in 1999, as well as stock options with a potential value of $8.16 million over the next three years.

Goldberg received a base salary of $2 million, the minimum salary he is entitled to receive through 2004. Goldberg also received a bonus of $3 million, plus additional compensation of $69,000.

Typically, the annual bonus would be limited to 100 percent of the executive's annual salary. However, Park Place said in its proxy statement the board wanted to reward Goldberg for "exceptional achievement in the successful acquisition of Caesars World Inc. and other gaming assets with minimal use of outside resources." Park Place acquired Caesars for $3 billion at the end of 1999.

Goldberg's options reflect an "adjustment" of Goldberg's previously held options while he was with Hilton Hotels Corp. An additional 2.2 million options, with a strike price of $10.56, were granted to "adequately preserve the value of the converted Hilton options." These options will expire in staggered amounts over the next three years, and carry a potential value of $8.16 million, assuming Park Place stock appreciates at 10 percent annually through 2003.

Goldberg received $1 million in salary in 1998 as vice president of gaming operations for Hilton. He received an additional $1 million in bonuses from Park Place that year.