Culinary demanding changes at Hilton

Wednesday, May 26, 2004 | 10:43 a.m.

SUN STAFF AND WIRE REPORTS

BEVERLY HILLS, Calif. -- Hilton Hotels Corp. is facing calls from some shareholders to make its board more independent amid concerns over relationships between the hotelier and its directors, the Wall Street Journal reported today.

A shareholder proposal by the Hotel Employees & Restaurant Employees International Union, which represents 15,000 Hilton employees and is known in Las Vegas as the Culinary Union, wants two-thirds of the company's directors be free of direct ties to Hilton or its management, the Journal said.

The proposal, which will be put to a vote at Hilton's annual meeting Thursday, is thought to have the support of the California State Teachers Retirement System, which holds 1.2 million Hilton shares, and the Institutional Shareholder Services Inc., which has recommended its clients vote for the resolution, the Journal said.

Hilton considers seven of its 13 board members to be independent and has recommended shareholders vote against the proposal, the Journal said.

"I think it's very well known that we have a very active, strong and independent board," the Journal cited Hilton spokesman Marc Grossman as saying.

Hilton is a big player in the Las Vegas lodging industry with numerous time-share developments and nongaming hotels and motels. Its sister company is gaming resort giant Caesars Entertainment Inc.