Elinor Mertz
AirbnbAbout Elinor Mertz
Elinor Mertz is Airbnb’s Chief Financial Officer (CFO), appointed effective March 1, 2024 (age 48). She joined Airbnb in 2013, previously leading Global FP&A, and later served as VP of Finance overseeing strategic finance and analytics, corporate planning, and investor relations; earlier, she held finance roles at Netflix from 2006–2013. She holds a BA in Science, Technology & Society and MA in History (Stanford), an MBA (Stanford GSB), and an MIA (Columbia) . During her early CFO tenure, Airbnb delivered 2024 revenue of $11.1B (+12% YoY), Adjusted EBITDA of $4.0B (+11% YoY), Free Cash Flow of $4.5B (+17% YoY), while net income decreased to $2.6B due to the prior year’s tax valuation allowance release . Since the IPO (12/10/2020) through 12/31/2024, cumulative company TSR equated to $90.81 on a $100 initial investment (peer group index: $218.27) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Airbnb | VP Finance (formerly Head of Global FP&A) | 2013–2019 (FP&A); 2019–Mar 2024 (VP Finance) | Led strategic finance & analytics, corporate planning, and investor relations . |
| Netflix | Finance roles incl. VP, Finance & Investor Relations | 2006–2013 | Public company FP&A/IR leadership foundation prior to joining Airbnb . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| DoorDash, Inc. | Director | Since Jul 2022 | Board oversight at scaled marketplace/logistics platform . |
| Faire Wholesale, Inc. | Director | Since 2022 | Board role at private eCommerce marketplace . |
Fixed Compensation
| Component | 2024 Disclosure | Notes |
|---|---|---|
| Base Salary | $650,000 (increased from $415,000 upon promotion Mar 1, 2024) | First base increases for NEOs since IPO; effective 3/1/2024 for Mertz . |
| Target Bonus % | 75% of base salary | Applies to CFO; CEO not eligible . |
| Actual Bonus Paid | $468,000 (96% of $487,500 target) | Company-wide formulaic achievement at 96% of target . |
| 2024 Total Comp (SEC SCT) | $13,334,605 (Salary $606,615; Stock $7,527,805; Options $4,718,262; Cash incentive $468,000; Other $13,923) | Stock/option values per ASC 718; salary reflects partial-year rate increase . |
Performance Compensation
Annual Cash Incentive (Bonus Plan) – 2024 Structure and Outcome
| Priority | Example Metrics | Weight | Weighted Achievement |
|---|---|---|---|
| Business Performance | Nights booked growth | 15% | 15% . |
| Make Hosting Mainstream | Listings growth | 15% | 15% . |
| Perfect the Core | Trip quality, CSAT, site reliability, fixed cost growth | 25% | 23% . |
| Expand Beyond the Core | Intl. markets growth; Winter Release | 15% | 14% . |
| Grow & Engage Guest Community | Summer Release; new guest growth | 30% | 29% . |
| Payout vs Target | — | — | 96% (company multiplier) . |
Long-Term Equity (2024 Grants and Vesting)
| Instrument | Grant Date | Size | Exercise/Price | Vesting Schedule |
|---|---|---|---|---|
| RSUs (annual) | Apr 5, 2024 | 46,534 units | — | 1/16th each quarterly anniversary of Feb 19, 2024, subject to service . |
| Stock Options (annual) | Apr 5, 2024 | 49,858 options | $168.18 | 1/48th monthly from Feb 19, 2024, 10-year term, subject to service . |
Notes:
- 2024 mix shifted to 70% RSUs / 30% options for NEO annual awards to align with peers and retention .
- Options provide value only if stock appreciates above $168.18 strike; RSUs vest over four years, supporting retention .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 572,399 Class A shares (<1% of outstanding) . |
| Beneficial Ownership Breakdown (footnote) | 368,172 Class A held directly; 191,299 options exercisable within 60 days of 4/7/2025; 12,928 RSUs vesting/settling within 60 days of 4/7/2025 . |
| Ownership Guidelines | Executives must hold shares = 5x base salary; 50% of net shares must be held until guideline met . |
| Hedging/Pledging | Hedging prohibited; pledging prohibited absent Board approval and capped at ≤5% of holdings and ≤$50M loan exposure . |
| Insider Policy | Formal insider trading policy; pre-clearance and procedures in place . |
| Vested vs Unvested (select outstanding as of 12/31/2024) | RSUs unvested include 37,809 units from 2024 grant; options include tranches across 2021–2024 grants (see Outstanding Equity table) . |
Governance notes:
- No pledging by Ms. Mertz is disclosed; company-wide pledging restrictions apply .
- Executive travel coupons and nominal gross-ups apply broadly to employees; perquisites for Mertz totaled $13,923 in 2024 (401k match $10,350, travel coupon $2,000, gross-up $1,573) .
Employment Terms
| Provision | Outside CIC | During CIC Window (3 months prior to 12 months after CIC) |
|---|---|---|
| Cash Severance | 1x base salary (lump sum) . | 1x base salary + target bonus (lump sum) . |
| COBRA | Company-paid premiums up to 12 months . | Company-paid premiums up to 12 months . |
| Equity Acceleration | Service-vesting awards accelerate by 6 months of vesting; performance awards per award terms . | Service-vesting awards fully accelerate; performance awards per award terms . |
| Estimated Value (as of 12/31/2024, $131.41 stock price) | Cash $650,000; Medical $37,548; Equity accel $2,656,677; Total $3,344,225 . | Cash $1,137,500; Medical $37,548; Equity accel $11,423,445; Total $12,598,493 . |
| Definitions | Cause/Good Reason definitions stipulated; cure rights included . |
Plan mechanics on change in control:
- If awards are not assumed/substituted, all non-CEO awards vest in full; CEO award converts per price-based tranches and accelerates upon qualifying termination if not assumed .
Compensation Structure Analysis
- Equity-heavy mix and shift from options to RSUs (70/30 in 2024) increase retention certainty and lower risk versus option-heavy structures; options still provide upside leverage .
- Bonus plan is explicitly tied to operational priorities (nights booked, listings growth, experience quality, international expansion, guest growth), with a capped payout (120%) and 2024 outcome at 96%—indicative of disciplined pay-for-performance tied to stakeholder metrics rather than pure revenue/EBITDA .
- Modest cash increases at promotion (to $650k) and balanced equity grants align with competitive market norms for scaled tech platforms .
- Clawback policy compliant with SEC/Nasdaq, ownership requirements at 5x salary, and hedging/pledging restrictions support alignment and risk governance .
Compensation & Incentives Detail (Selected 2024 Tables)
| Metric | Value |
|---|---|
| Base Salary (2024) | $606,615 (partial-year at new rate) . |
| Target Bonus % | 75% of base . |
| Actual Bonus Paid (2024) | $468,000 (96% of $487,500 target) . |
| 2024 RSU Grant | 46,534 units; vest 1/16th quarterly from Feb 19, 2024 . |
| 2024 Option Grant | 49,858 options @ $168.18; vest monthly over 48 months from Feb 19, 2024 . |
| 2024 Total Compensation | $13,334,605 . |
Performance & Track Record (Company context during Mertz’s CFO tenure)
| 2024 Company KPIs | YoY/Amounts |
|---|---|
| Revenue | $11.1B (+12% YoY) . |
| Gross Booking Value | $81.8B (+12% YoY) . |
| Adjusted EBITDA | $4.0B (+11% YoY) . |
| Free Cash Flow | $4.5B (+17% YoY) . |
| Net Income | $2.6B (down 45% YoY due to prior-year DTA valuation allowance release) . |
| Share Repurchases | $3.4B in 2024; $7.2B cumulatively since 2022 through 12/31/2024 . |
| Listings | >8 million active listings at year end . |
Pay and shareholder feedback:
- Say-on-Pay approval: 98.8% in 2024; annual say-on-pay cadence .
Compensation governance and peer benchmarking:
- Compensation committee members: Ahrendts (Chair), Chenault, Lin; independent consultant Semler Brossy; peer set includes Adobe, Block, Booking, DoorDash, Intuit, Netflix, Pinterest, Salesforce, ServiceNow, Shopify, Spotify, Uber, Zoom (with changes vs 2023) .
Investment Implications
- Alignment and retention: The 4-year RSU schedule (quarterly) and monthly option vesting create consistent retention hooks; combined with 5x salary ownership guidelines and strict hedging/pledging limits, this supports long-term alignment with shareholders .
- Near-term selling pressure watch: Quarterly RSU vesting from the 2024 grant (1/16th cadence) and monthly option vesting may create periodic liquidity events; monitor Form 4 filings around quarterly vest dates and trading windows to gauge any selling pressure .
- Change-in-control economics: CFO severance of 1x salary+target bonus plus full acceleration of service-based awards in CIC scenarios implies moderate protection; outside CIC, only six months of service-based acceleration mitigates windfalls while still offering retentive value .
- Pay-for-performance balance: Cash bonus outcomes tied to operational metrics (96% of target) and equity-heavy LTIs position compensation to track platform health and growth (nights, listings, guest engagement) rather than solely financial outputs—complemented by robust 2024 FCF/EBITDA growth under new CFO tenure .
Bottom line: Mertz’s package is equity-centric with disciplined cash components and strong governance guardrails (clawback, ownership, hedging/pledging restrictions). The vesting cadence suggests ongoing retention and potential periodic supply; continued execution on growth and cash generation remains the key lever for realized compensation and investor alignment .