Hilton Hotels Cuts CEO’s Pay as Profit Falls

Hilton Hotels Corp. cut President and Chief Executive Stephen F. Bollenbach’s pay 29% to $2.1million last year as the third-largest hotel company failed to meet profit goals.

Bollenbach, 59, was paid $1 million in salary, $900,000 in a bonus and $205,245 in other compensation including matching contributions to a 401(k) plan, the company said in a filing with the Securities and Exchange Commission. In 2000 he was paid $2.95 million, including a $1.8-million bonus, a $921,141 salary and $222,010 in other pay.

Hilton’s net income fell 39% in 2001 as the hotel industry suffered its worst drop in demand in more than three decades because of the Sept. 11 terrorist attacks.

Bollenbach deferred his bonuses for 2000 and 2001 and will receive them when the company no longer is subject to income tax deduction limits imposed by the Internal Revenue code, the filing said.

Shares of Beverly Hills-based Hilton rose 4% in 2001.

The shares closed up 34 cents at $14.69 on the New York Stock Exchange.