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Head of Hilton Group to earn £9m from deal
Published: 2005-12-31
 By Dominic Walsh
DAVID MICHELS, the chief executive of Hilton Group, will pocket almost £9 million over the next three years after the sale of the company’s hotel division to Hilton Hotels Corporation (HHC) of America for £3.3 billion.
Mr Michels, who has worked in the hotel industry for 40 years, will quit Hilton Group once the deal goes through, but is being taken on by HHC under a three-year consultancy-style contract paying him £239,806 a month.
IF HHC ends the contract early, he will receive the entire amount of £8.633 million due over the three years, less the total that he has been paid already.
The money is on top of the estimated £4.8 million profit that he will make from cashing in the various Hilton share option and Bonus plans. He also owns shares worth almost £1.3 million at yesterday’s 363½p close, down 5¼p.
Brian Wallace, Hilton’s finance director and deputy chief executive, is being taken on by HHC on a similar contract worth £6.34 million over three years.
The duo initially will work full-time to oversee the reunification of the two Hiltons, but are expected to move to part-time consultancy roles eventually. Although they will not be on the HHC board, their contracts prevent them from taking on anything other than non-executive roles with other companies.
Analysts expressed surprise at the nature of the contracts, particularly in respect of the 52-year-old Mr Wallace, who is highly regarded in the City and had been expected to seek a high-profile chief executive role. “I doubt very much whether Brian will last three years with HHC,” one analyst said.
Ian Carter, chief executive of its Hilton International division, will retain the same job under HHC. He will be paid a salary of $735,000 (£430,000) plus Bonuses and a “retention cash award” of $8.4 million over three years.
The sale of Hilton International will see the company change its name to Ladbrokes, reflecting its focus on bookmaking and internet gambling. There had been speculation that the newly independent Ladbrokes might seek to acquire either Rank or a United States-focussed internet poker business.
However, Chris Bell, the Ladbrokes chief executive, is believed to have decided to pursue an organic expansion strategy. In the case of the US, he is expected to develop an online presence by using its existing Ladbrokespoker.com operation.
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Prima Network and The Hendon Mob: Mission Accomplished!
Published: 2005-12-30
 ISLE OF MAN, Dec. 30, 2005 (PRIMEZONE) -- The Prima Network, the world's leading online poker network, and The Hendon Mob will conclude their third and final sponsorship deal this month. In 2003, the initial Prima tour teamed the emerging poker network with Europe's foremost poker professionals in poker's first major sponsorship deal. The success of that tour led to more ambitious and fruitful deals in 2004 and 2005. During that time, the network grew to its current leading position in the industry. Moving forward, Prima will continue to focus its efforts on continuing to expand the network.
"Both Prima and the Mob have enjoyed and benefited from our work together over the past two years," stated Prima Network CEO Roger Raatgever. "The Mob are world-class players and we wish them the best of luck, at the tables and beyond."
Recently awarded 2005 Top Gaming Portal by Gambling Online Magazine, The Prima Network is known for its presence in the poker world as a trendsetter. Signing the Hendon Mob was just one of the many benchmarks of the Network's influence in the poker world. The deal, worth more than $1 million a year, was the first of its kind and has since been emulated by every major card room on the Internet.
During Prima's relationship with the Mob, the foursome acted as the network's ambassadors at more than 40 poker tournaments and festivals around the world, greeting and helping network satellite winners, onlookers and even reporters, to improve their games. Through their popular website, thehendonmob.com, they helped to build and strengthen Prima's online community.
"Our association over the past two and a half years has been a great success for both Prima and the Mob," said Barny Boatman. "We have made many great friends across the Prima Network and look forward to seeing a continuation of the phenomenal growth we have been a part of. We have seen Prima become the world's foremost poker network, and as far as building the brand is concerned it is a case of 'job well done'. The Mob retains good relations with Prima and with many of the network's card rooms. In particular we look forward to continuing to support the hugely successful Monte Carlo Millions which has become one of the world's most prestigious events."
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