Hilton Hotels chief receives slight raise

Thursday, April 10, 2003 | 11:11 a.m.

SUN STAFF AND WIRE REPORTS

BEVERLY HILLS, Calif. -- Hilton Hotels Corp., the third-largest U.S. hotel company, paid Chief Executive Stephen Bollenbach $2.22 million in salary and bonus last year as the company's shares rose 16 percent.

Bollenbach is also chairman of the board of Park Place Entertainment Corp., a casino resort operator in Las Vegas that was spun off from Hilton in 1998.

Bollenbach, 60, received a salary of $1 million, unchanged from 2001, and bonus of $1 million, up from $900,000, the Beverly Hills, Calif.-based company said in a Securities and Exchange Commission filing.

Hilton said Bollenbach's bonus was based on the company's earnings per share, individual performance and efforts to improve the company's diversity. Bollenbach also received compensation of about $218,000 for the purchase of a company car, use of company aircraft and contributions to a retirement plan, the regulatory filing said.

Bollenbach deferred his bonus and will receive it when the company is no longer subject to federal income tax deduction limits imposed by the Internal Revenue code, Hilton said. He also deferred his 2000 and 2001 bonuses.

Bollenbach didn't receive options to purchase shares. He received no options in 2001.

Under an agreement with Park Place, Bollenbach is entitled to receive a base salary of $100,000 per year for his services as board chairman. The agreement, which extends through July 1, 2005, doesn't allow Bollenbach to receive a bonus other than an annual vacation and reimbursement of certain expenses related to his services as chairman.