Ousted Priceline CEO Took 32% Pay Cut -- WSJ
April 30 2016 - 3:03AM
Dow Jones News
By Drew FitzGerald
Priceline Group Inc.'s ousted chief executive took a 32% cut to
his annual compensation after fellow directors decided in February
not to pay him a cash bonus as they investigated a relationship
they later deemed inappropriate.
Darren Huston, who had been the online travel agent's CEO since
2014, resigned this week after the company found he violated
Priceline's code of conduct.
The Priceline board opened an investigation earlier this year
after a tip from a whistleblower about Mr. Huston's relationship
with a woman at the company, according to a person familiar with
the matter.
Mr. Huston received $15 million in total compensation for 2015,
including a $865,000 salary and stock awards worth $14 million. The
previous year he received compensation of $22 million, including a
$7 million cash bonus and $14 million stock award.
"The sole factor in determining not to award Mr. Huston a 2015
bonus was his conduct involving the employee," according to
Priceline's proxy statement filed late Thursday. Other top
executives at the company received 2015 cash bonuses in February
that were equal to the previous year's payments, according to the
proxy.
Under the terms of his separation agreement, Mr. Huston won't
receive any severance payments and agreed to forfeit more than $13
million in equity awards. Priceline did hasten the vesting of other
equity awards worth about $33.8 million on Thursday, according to
an analysis by executive-pay specialist Mark Reilly.
Priceline said the probe determined the employee was "not under
his direct supervision," but that the CEO's activities were
"inconsistent with the Board's expectations for executive conduct,
which Mr. Huston acknowledged and for which he expressed
regret."
Mr. Huston, who is married and was based in the Netherlands,
declined to comment Thursday. He also resigned from the Priceline
board. The board has launched a search for a replacement and
appointed company chairman and former CEO Jeffery Boyd, 59 years
old, as interim chief executive.
"While unplanned, I consider it a great privilege to lead this
organization," Mr. Boyd said in the proxy filing.
Write to Drew FitzGerald at andrew.fitzgerald@wsj.com
(END) Dow Jones Newswires
April 30, 2016 02:48 ET (06:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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