Summary
Hilton Worldwide Holdings Inc. (HLT) filed an 8-K on September 24, 2015, to report a change in its Board of Directors. Specifically, Michael S. Chae resigned from the Board of Directors, effective immediately on September 23, 2015. This resignation was prompted by his appointment as Chief Financial Officer at The Blackstone Group L.P., a significant former shareholder. The filing also noted that as Blackstone's beneficial ownership of Hilton's voting stock had fallen below 50% on May 14, 2015, Hilton is now subject to New York Stock Exchange (NYSE) rules requiring a majority of independent directors. The company anticipates adding one or more independent directors to its Board by May 14, 2016, to ensure compliance with these listing requirements.
Key Highlights
- 1Michael S. Chae has resigned from Hilton's Board of Directors, effective September 23, 2015.
- 2Mr. Chae's resignation is due to his new role as Chief Financial Officer at The Blackstone Group L.P.
- 3Mr. Chae's departure was not a result of any disagreement with Hilton.
- 4Hilton is now required to comply with New York Stock Exchange (NYSE) rules regarding board independence.
- 5This requirement stems from Blackstone's beneficial ownership falling below 50% of the Company's voting stock on May 14, 2015.
- 6Hilton expects to add one or more independent directors to its Board by May 14, 2016, to meet NYSE listing standards.