In 2021, Airbnb announced that CEO Brian Chesky had received a $120 million pay package, potentially earning him up to 12 million restricted stock units over the following decade. The fair value of these stock units was estimated to be $430 million at the time of the grant in November 2020, just before Airbnb went public. The stock price soared after the IPO, and Chesky’s 10-year package could potentially be valued at $1 billion or more if certain share price targets are met each year.
Following a proxy statement issued by Airbnb, it was revealed that the potential value of Chesky’s remaining unearned shares at the end of 2023 was $1.3 billion. However, there are conditions that Chesky needs to meet in order to receive these payouts, including share price hurdles that must be reached each year. The first tranche of shares vested in November 2021, netting Chesky around $136 million, based on the share price at the time. The next tranche is set to vest in November 2024, with an estimated value of $188 million.
Future stock awards will be even tougher to achieve, with share price hurdles set at $245 in 2024, $365 in 2027, and $485 in 2030. The board of directors initially awarded Chesky the pay package with the understanding that a portion of the proceeds would be donated to support Airbnb hosts and various charitable causes. Even if the stock price targets are not met, Chesky still owns millions of Airbnb shares, making him a billionaire based on current prices.
It’s worth noting that Chesky’s net proceeds could potentially go towards host programs and charities, such as educational grants and emergency funds. As of now, it is unclear if any contributions have been made yet. The CEO’s base salary in 2023 was $1, with additional compensation for personal security costs. The median employee pay at Airbnb in 2022 was $243,757, reflecting the company’s commitment to fair compensation across all levels of employment.
The Skift Travel 200 index tracks the performance of hotels and short-term rental companies in the travel sector, including international and regional brands, REITs, alternative accommodations, and timeshares. The index provides a comprehensive overview of the financial performance of nearly 200 travel companies valued at over a trillion dollars. This data helps investors and analysts assess the overall health and trends within the accommodations sector of the travel industry.
