The new contract, which amends a previous employment agreement from May 2002, provides that Bollenbach will remain a consultant to Hilton for five years beginning on his retirement date. It continues his $1-million annual salary and eligibility for an annual bonus of 100% of his salary. His fees for consulting after retirement will be $500,000 per year, along with one-time cash signing bonuses totaling more than $330,000.
Bollenbach was named co-chairman of Hilton Hotels Corp. in May and has been CEO since joining the company in February 1996. He has overseen the formation of a sales and marketing alliance between Hilton Hotels and Hilton International, which owns the Hilton brand outside the US in what the company has described as the first reuniting of the brands in 34 years. He has also presided over the acquisition of Bally Entertainment, which made Hilton the world's largest gaming company, and has also spun off Hilton's gaming operations in a tax-free transaction to shareholders to form Park Place Entertainment, which became Caesars Entertainment Corp.
Before joining Hilton, Bollenbach was senior EVP and CFO for the Walt Disney Co., where he was instrumental in the $19-billion acquisition of Capital Cities/ABC, which at the time was the second-largest acquisition in US business history. Before Disney, Bollenbach was president and chief executive officer of Host Marriott Corp. and before that he was CFO of the Trump organization.
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