Skift Breaking News Blog

Short stories and posts about the daily news happenings around the travel industry.

Business Travel

American Express Global Business Travel To Debut on Tuesday — Interesting Factoids

1 month ago

It’s a holiday weekend in the U.S. so what better time to break up the monotony of barbecues and beach, and burrow into a Securities and Exchange Commission filing about the pending SPAC debut Tuesday of American Express Global Business Travel.

Among the takeaways:

  • The merger of Apollo Strategic Growth Capital and Amex GBT will see Amex GBT’s existing investors, including American Express, Certares, and Expedia Group, among others, controlling 74 percent of the voting power. They’ll have the power to make all of the big decisions, including board of director composition.
  • Global Business Travel Group, as the company will be formally called, will be considered to be controlled by American Express Co., and will be regulated by the U.S. Federal Reserve. As Skift previously reported, Global Business Travel Group can continue doing business as American Express Global Business Travel because of an 11-year trademark pact.
  • Only 15 percent of the company’s stock is expected to be owned by public shareholders.
  • Egencia, which Amex GBT acquired from Expedia Group in November 2021, did $8.4 billion in transactions in pre-pandemic 2019. Expedia Group traditionally disclosed revenue for its corporate segment, but not total transaction value for Egencia. That $8.4 billion would have amounted to roughly 8 percent of Expedia Group’s gross bookings that year.
  • The Egencia business was therefore a significant volumes chunk of Expedia Group, which sold Egencia during a huge business travel downturn in a drive to simplify Expedia’s overall operation. At any rate, Expedia Group got a 13 percent stake in Amex GBT because of the deal.
  • Ovation Travel, which Amex GBT acquired in January 2021, was tiny compared with Egencia in total transaction value, $1.2 billion for Ovation versus $8.4 billion for Egencia.
  • Amex GBT CEO Paul Abbott had 2021 total compensation of $18.4 million compared with $5 million a year earlier.

Tuesday’s stock market coming out party for Amex GBT, trading under the stock symbol GBTG, should be an interesting one to watch in terms of investor confidence in the future of managed business travel.

Online Travel

Expedia CEO’s Total Compensation Pegged at $296 Million for 2021

2 months ago

Expedia Group Vice Chairman and CEO Peter Kern’s 2021 total compensation was $296 million.

That includes $157 million in stock awards and $137 million in option awards. His salary was around $850,000. The stock and option awards represent the fair value at the grant date, and won’t necessarily be the actual value when the awards vest.

Kern’s total compensation in 2021 compared with $53.9 million for Booking Holdings’ Glenn Fogel, $7.67 million for Tripadvisor’s Steve Kaufer, and $132,000 for Airbnb’s Brian Chesky.

Chesky had a nice pay day — on paper like Kern’s — for 2020, namely $120 million, and Kaufer’s total compensation announced in 2013 was $39 million.

Kern became Expedia Group CEO during the early days of the pandemic in April 2020. He has been vice chairman since 2018, and a board member since 2005.

When it comes to the ratio of the CEO’s salary to median employee compensation, excluding the CEO’s compensation, at each company, Expedia’s was 2,897 to 1; Booking’s was 931 to 1; Tripadvisor’s was 76 to 1; and Airbnb’s was .65 to 1.

The total compensation amounts were included in proxy statements last month.

Online Travel CEO Compensation 2021

CEOCompanyTotal CompensationRatio
Peter KernExpedia$296,000,0002,897 to 1
Glenn FogelBooking Holdings$53,900,000931 to 1
Stephen KauferTripadvisor$7,670,00076 to 1
Brian CheskyAirbnb$132,000.65 to 1

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