Marriott's chairman got $1.4 million last year

March 17, 1993|By Bloomberg Business News

WASHINGTON -- J.W. Marriott, the 61-year-old chairman and president of Marriott Corp., received overall compensation of $1.4 million last year, including a restricted stock bonus worth $92,345.

Marriott's chairman received 114,000 stock options with exercise dates in the future.

He currently has the right to stock options worth $1.35 million, according to a proxy statement Marriott filed with the Securities and Exchange Commission.

The chairman received the compensation during a year that saw the company's stock soar after the hotel operator announced a controversial restructuring plan. In response to complaints from bondholders, the company has agreed to modify the plan, though the issue is far from settled.

Shareholders will be asked to approve the restructuring at the company's June 22 annual meeting.

Marriott's shares gained 42 percent since the company's Oct. 5 announcement of a plan to split into two entities. The company's bonds, which lost as much as 30 percent, have recovered somewhat in recent weeks as Marriott modified the plan.

Marriott shares closed yesterday at $27.125.

On Oct. 5, the company said it planned to divide the company's assets between two entities. Marriott International Inc., owner of the company's profitable hotel management business, would hold little debt. Host Marriott Corp. would be left with money-losing real estate and airport and toll-road concessions and $2.9 billion of debt.

Under the modified plan, the company said it would offer to swap its bonds for new bonds with higher rates and longer terms and shift some of Host Marriott's debt to its sibling.

J.W. Marriott's compensation also includes $725,000 in salary and a bonus of $617,288.

Overall compensation, set by a committee of outside directors, reflects the chairman's efforts "to manage the company during tough times," said company spokesman Robert Souers. "Earnings are beginning to show that."

"We think Mr. Marriott's pay is comparable to other executives managing companies of this magnitude," Mr. Souers said.

In 1992, the company earned $85 million, or 64 cents a share, up 4 percent from $82 million, or 80 cents, a year earlier.

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