Host Marriott chief gets stock bonus worth $61 million

December 28, 1993|By Bloomberg Business News

WASHINGTON -- Stephen F. Bollenbach, the chief executive who led Host Marriott Corp. through a tortuous restructuring effort, received a stock bonus of 7 million restricted shares earlier this year.

The award, which has a current market value of about $61 million, is one of the largest ever given to an executive at a public company, one compensation expert said. In 1991, Coca-Cola Co. awarded Chairman and Chief Executive Officer Roberto Goizueta 1 million shares of restricted stock that, adjusted for a May 1992 stock split, have a market value of about $88 million.

Apparently, Host Marriott gave the 51-year-old Mr. Bollenbach the stock award to ensure that he remains with the company. Mr. Bollenbach will get a certain number of restricted shares each year, with the restrictions set to elapse over a five-year period for 6.46 million shares. The award of another 600,000 shares is also subject to the company meeting certain performance targets, according to the registration statement.

Mr. Bollenbach left Marriott once before, in 1986, to take other jobs. After serving as the company's senior vice president of finance and treasurer between 1982 and 1986, Mr. Bollenbach left to join Holiday Corp., the parent of the Holiday Inn chain. He later helped restructure Donald Trump's real estate and casino empire.

According to the filing, Mr. Bollenbach, who held 3,000 shares of Host Marriott common stock as of Oct. 31, will own 1.5 million shares by Friday. That would indicate that restrictions on part of the stock award elapse this year.

If the restrictions on all of the shares elapsed today, Mr. Bollenbach would be one of the company's largest executive shareholders. Richard Marriott and J. W. Marriott Jr., who both serve as Host Marriott directors, respectively own 6.1 million and 4.9 million shares, according to the SEC filing. The Marriott family altogether owns about 26.3 million shares, or 22.2 percent of shares outstanding as of Oct. 31.

Mr. Bollenbach was in Arizona and could not be reached for comment. The stock award was approved by Host Marriott's board Oct. 29, according to the registration statement.

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