Stephen Bollenbach

Stephen Frasier Bollenbach (July 14, 1942 – October 8, 2016) was a financial manager who served as CEO and CFO for many hotel-related organizations. After working with financier Daniel K. Ludwig from 1968 to 1980, he oversaw mergers and acquisitions for various corporations to include Marriott Corporation, Holiday Corporation, Harrah's Entertainment, the Trump Organization, Disney, and Hilton Hotels. He served on various corporate boards, including the nonexecutive chairman of Los Angeles-based KB Home[1] and a member of the board of directors of Time Warner. He served on the board of directors for American International Group, Inc. (AIG) during the 2007 financial crisis, and he was also a director of Harrah's Entertainment, Inc., Macy's, Inc., and the Los Angeles World Affairs Council.

Education

Bollenbach attended Lakewood High School (California), graduated from Long Beach City College, got a bachelor's degree in finance from UCLA in 1965, and a master's degree in management from the California State University, Northridge in 1968.[2]

Career

Ludwig Group

From 1968 until 1980 Bollenbach held a series of financial management positions with the Ludwig Group and helped to oversee some of his hotel properties.[3] Bollenbach had been introduced to the organization by John L. Notter,[4] who ultimately spent 15 years as the operating head of the D.K. Ludwig Group and became the chairman of the Ludwig Cancer Research. Bollenbach worked for Mr Ludwig for many years, helping to oversee some of his hotel properties. This work with Ludwig culminated as Bollenbach served as D. K. Ludwig's CFO from 1977 to 1980.

Bollenbach served as chairman and chief executive officer of Southwest Savings and Loan Association[2] in Phoenix from 1980 to 1982.

1982: Marriott

He served as senior vice president of finance and treasurer for the Marriott Corporation from 1982 to 1986. In 1982, the company acquired Host International for $120 million[5] and also Gino's Inc., the owner of Gino's Hamburgers and Rustler Steak House restaurant chains, for $48.6 million.[6][7] 108 Rustler Steak House Restaurants plus three other restaurants were sold in the following year to two different firms (Tenly Enterprises and Sizzler Restaurants International) for undisclosed amounts. Newly formed Tenly Enterprises purchased 94 restaurants while Sizzler Restaurants International purchased the remaining 17.[8] The Gino's chain had 359 company-owned locations when Marriott Corporation acquired it in 1982.[7] Marriott discontinued the brand and converted locations to its Roy Rogers Restaurants chain.[9] The last Gino's, located in Pasadena, Maryland and owned independently from Marriott, closed in 1986.

1986: Holiday Corp.

He then served as chief financial officer and a member of the board of directors of Holiday Corporation from 1986 to 1990.[10] Holiday Inns, Inc. was renamed "Holiday Corporation" in 1985 to reflect the growth of the company's brands, including Harrah's Entertainment, Embassy Suites Hotels, Crowne Plaza, Homewood Suites, and Hampton Inn. In 1988, Holiday Corporation was purchased by UK-based Bass PLC (the owners of the Bass beer brand). During his time at Holiday, Bollenbach helped prevent Trump from using a leveraged buyout to take over the hotel chain.[11]

1990–1992: Trump Organization

After a brief stint with Promus Companies (a corporate spin-off affiliated with Caesars Entertainment and Harrah's Entertainment) in 1990, Bollenbach became the first CFO[12] of the financially shaky Trump Organization in 1990 while Allen Weisselberg served under him as comptroller.[13]

1992–1995: Marriott

Bollenbach returned to Marriott Hotels in 1992[14]

1995–1995 Disney

In 1995, Bollenbach replaced Richard Nanula as the CFO for Disney.[15] In this position, he crafted Disney's $19-billion deal to buy Capital Cities/ABC in 1995.[16][17]

1996–2007 Hilton

Bollenbach was the co-chairman and chief executive officer of Hilton Hotels Corporation beginning in February 1996. He was the first person outside the Hilton Family to hold this position.[18] Bollenbach aimed to expand Hilton's gaming holdings through acquisitions, especially in Atlantic City, where Hilton had no presence.[19] Bally Entertainment, with five casinos, including two in Atlantic City, was a natural target. Its midscale clientele, heavy on slots revenue, would provide balance to the volatility of Hilton's high-end baccarat players.[20] Hilton beat out ITT Corporation with an offer of $2 billion in stock plus $1 billion of assumed debt,[19] and the purchase closed in December 1996.[21] In 2007, Bollenbach left after making the sale of Hilton to The Blackstone Group for $26 Billion.[22][17]

2008–2009 AIG

In January 2008 he was elected to the board of directors for American International Group, Inc. (AIG). At that time he was also listed as "Chairman of the Board of KB Home and a Director of Harrah’s Entertainment, Inc., Time Warner Inc. and Macy’s, Inc. He also served as a member of the Board of Directors of Teach for America and Los Angeles World Affairs Council."[2] AIG was a central player in the financial crisis of 2008. It was bailed out by the federal government for $180 billion, and the government took control."[23]) In June of 2008, AIG fired Chief Executive Officer Martin Sullivan, replaced him with Robert Willumstad as CEO and appointed Bollenbach as "lead independent director."[24] Willumstad left after three months on the job and was replaced by Chairman and Chief Executive Officer Edward M. Liddy, who was dismissed by the board in May 2009. after this resignation[25] and AIG's announcement that it would name six new independent directors,[26] Bollenbach himself left in 2009 along with Martin Feldstein, James Orr, Virginia Rometty, Michael Sutton, Edmund Tse, and Ed Liddy after working on bailout.[27]

Personal life, and death

According to a Ludwig Cancer Research Center memorial, “He was an avid traveler who loved to ski, drive sports cars, golf and collect wine. Steve established the Bollenbach Family Scholarship, which sends 15 deserving and financially challenged students each year to college.” [28]

Bollenbach divorced his first wife Barbara[29] in 2010.[30] He remarried Kimberly in 2011.[29] At his death, he and his wife Kimberly lived in East Gate Bel Air section of Los Angeles, California. He had two grown sons (by his first wife) Christopher and Keat, and two grandchildren.[31] He died at the age of 74 after a long illness in Manhattan, New York on October 8, 2016.[32]

References
  1. Bollenbach Checking Out Of Hilton, Into KB - Forbes.com
  2. Winans, Chris (2008-01-16). "AIG Elects Stephen F. Bollenbach to Board of Directors". Business Wire (AIG press release). Retrieved 19 December 2018.
  3. "Stephen F Bollenbach, spared Donald Trump from personal bankruptcy". Sydney Morning Herald. New York Times Obituary. 2016-10-17. Retrieved 19 December 2018. he came to the attention of Daniel K. Ludwig, once one of the world's richest men and entrepreneur with interests in shipbuilding, banks and hotels.
  4. "The Ludwig Institute for Cancer Research mourns Board Member Stephen Bollenbach". Ludwig Cancer Research Center. 2016-11-30. Retrieved 19 December 2018. He was introduced to the Ludwig organization by the Institute’s current Chairman, John Notter.
  5. "Marriott Plans To Buy Host". New York Times. December 4, 1981.
  6. "Marriott Offers To Buy Gino's". New York Times. January 5, 1982.
  7. Knight, Jerry (January 5, 1982). "Marriott Corp. Makes Bid For Gino's". Washington Post.
  8. "Briefs". New York Times. May 3, 1983.
  9. "The Marriott Timeline". Marriott International. Archived from the original on February 3, 2011.
  10. "Stephen Bollenbach, Who Spared Donald Trump From Personal Bankruptcy, Dies at 74". 13 October 2016. Retrieved 19 December 2018 – via NYTimes.com.
  11. "Stephen F Bollenbach, spared Donald Trump from personal bankruptcy". Sydney Morning Herald. New York Times Obituary. 2016-10-17. Retrieved 19 December 2018. chief financial officer at Holiday Corporation, the operator of Holiday Inn motels. During his time there, Bollenbach prevented Trump from taking over the chain through a leveraged buyout.
  12. "Financial wizard tries to untangle Trump empire". New York Times News Service. 1991-04-28. Retrieved 19 December 2018. Mr. Bollenbach was brought in by the developer after Mr. Trump's creditors insisted that he hire a chief financial officer, a position that had never existed at the Trump Organization.
  13. Teitelbaum, Richard (November 5, 2016). "Donald Trump's Loyal Numbers Man". Wall Street Journal. Mr. Weisselberg started off working for Mr. Trump’s father, Fred, and by the late 1980s was controller of the Trump Organization. In this role Mr. Weisselberg worked under CFO Stephen Bollenbach, who was hired in 1990.
  14. Farhi, Paul (1992-02-01). "MARRIOTT UNDERGOES MANAGEMENT SHAKE-UP". Washington Post. Retrieved 19 December 2018. In a top-level management shake-up, Marriott Corp. yesterday named a former executive as its new chief financial officer after one of the company's most senior officers resigned. Bethesda-based Marriott named as its top financial executive Stephen F. Bollenbach, who most recently helped Donald Trump restructure his debt-ridden empire.
  15. Fink, Ronald (1997-11-01). "Managing Mickey's Money". Corporate Finance News. Retrieved 19 December 2018. In fact, a few months before Bollenbach joined Disney from Marriott in April 1995, Nanula doffed the CFO hat, which he had worn since August 1991, and replaced it with that of president of The Disney Store Worldwide.
  16. Silverman, Gary; Nicolaou, Anna Nicolaou (2016-10-21). "Steve Bollenbach, hospitality executive, 1942-2016". Financial Times. Retrieved 19 December 2018. He served as chief financial officer of Marriott and Walt Disney and chief executive of Hilton Hotels, a post he held from 1996 to 2007, when he sold the company to Blackstone for $26bn. ... He helped craft Marriott’s 1992 split into a hotel management operation and a real estate holding company, as well as Disney’s $19bn deal to buy Capital Cities/ABC in 1995.
  17. Time Warner: Stephen Bollenbach
  18. "Stephen F Bollenbach, spared Donald Trump from personal bankruptcy". Sydney Morning Herald. New York Times Obituary. 2016-10-17. Retrieved 19 December 2018. When he became chief executive of Hilton the following year, he was the first person outside of the Hilton family to hold that position.
  19. Chris Kraul; Jesus Sanchez (7 June 1996). "Hilton Hotels to acquire Bally Entertainment". Los Angeles Times. Retrieved 2012-05-10.
  20. Orwall, Bruce (7 June 1996). "Hilton to acquire Bally Entertainment in push to be largest gambling concern". Wall Street Journal. ProQuest 398694119. (subscription required)
  21. "Hilton completes Bally deal". Wall Street Journal. 19 December 1996. ProQuest 398548351. (subscription required)
  22. Silverman, Gary; Nicolaou, Anna Nicolaou (2016-10-21). "Steve Bollenbach, hospitality executive, 1942-2016". Financial Times. Retrieved 19 December 2018. He served as chief financial officer of Marriott and Walt Disney and chief executive of Hilton Hotels, a post he held from 1996 to 2007, when he sold the company to Blackstone for $26bn. ... He helped craft Marriott’s 1992 split into a hotel management operation and a real estate holding company, as well as Disney’s $19bn deal to buy Capital Cities/ABC in 1995.
  23. Phil Angelides (2011). Financial Crisis Inquiry Report. DIANE Publishing. p. 352. ISBN 9781437980721.
  24. "A.I.G. fires CEO Martin Sullivan". United Press International. 2008-06-16. Retrieved 19 December 2018. Sullivan is leaving after three years at the helm and will be replaced by A.I.G. Chairman Robert Willumstad, a former president and chief operating officer of Citigroup, Inc. … A.I.G. also named former Hilton Hotels executive Stephen Bollenbach, as its lead independent director, a company statement said.
  25. "AIG CEO, Chairman Liddy Calls It Quits; Search On for 2 Replacements". Insurance Journal. 2009-05-21. Retrieved 19 December 2018. Liddy “answered the call of his country and the needs of AIG without reservation amid one of the darkest periods of the current financial crisis,” said Stephen A. Bollenbach, AIG’s lead director, in honoring Liddy.
  26. "AIG Names 6 Independent Directors". Insurance Journal. 2009-05-20. Retrieved 19 December 2018. American International Group, Inc. (AIG) announced that six new independent director nominees will stand for election at the AIG 2009 annual meeting of shareholders scheduled on June 30.
  27. Golub, Harvey. "Chairman's Message (Harvey Golub, non-executive Chairman of the Board))" (PDF). AIG website. Retrieved 19 December 2018. During the year, Stephen Bollenbach, Martin Feldstein, James Orr, Virginia Rometty, Michael Sutton, Edmund Tse, and Ed Liddy retired after a period of time spent dealing with the liquidity crisis and the initial work on the government bailout.
  28. "The Ludwig Institute for Cancer Research mourns Board Member Stephen Bollenbach". Ludwig Cancer Research Center. 2016-11-30. Retrieved 19 December 2018. He was an avid traveler who loved to ski, drive sports cars, golf and collect wine. Steve established the Bollenbach Family Scholarship, which sends 15 deserving and financially challenged students each year to college.
  29. "He Saved Trump From Bankruptcy: Now Widow and First Wife in Court Showdown". My News LA. 2018-04-02. Retrieved 19 December 2018. Stephen and Kimberly Bollenbach married in 2011. His two sons were born during his previous marriage to Barbara Bollenbach, which ended in divorce in 2010
  30. "Stephen F Bollenbach, spared Donald Trump from personal bankruptcy". Sydney Morning Herald. New York Times Obituary. 2016-10-17. Retrieved 19 December 2018. In addition to his wife, he is survived by two sons, Christopher and Keat, and two grandchildren. An earlier marriage ended in divorce.
  31. "STEPHEN F. BOLLENBACH bio" (PDF). Hilton Corp Bio. Retrieved 19 December 2018.
  32. https://www.nytimes.com/2016/10/14/business/stephen-bollenbach-dead.html?_r=0
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