Brian Choi
AVIS BUDGET GROUPAbout Brian Choi
Brian J. Choi, age 42, is incoming Chief Executive Officer of Avis Budget Group effective July 1, 2025, after serving as Chief Transformation Officer since January 2024 and previously as Chief Financial Officer from August 2020 to December 2023 . Company performance context: 2024 revenue was $11.789 billion with Adjusted EBITDA of $628 million following one-time fleet impairment; five-year TSR was 181% . Under Choi’s tenure as CEO, Q3 2025 results improved to $3.519 billion revenue, $559 million Adjusted EBITDA, and $359 million net income .
Past Roles
| Organization | Role | Years | Notes/Impact |
|---|---|---|---|
| Avis Budget Group | Chief Transformation Officer | 2024–mid 2025 | Led technology and cost/transformation agenda; appointed CEO effective July 1, 2025 |
| Avis Budget Group | Chief Financial Officer | 2020–2023 | Executive financial leadership; transitioned to CTO in Jan 2024 |
| Avis Budget Group | Director | 2016–2020 | Board service prior to executive roles |
| SRS Investment Management | Partner | 2008–2020 | Investment leadership prior to ABG roles |
| Metalmark Capital | Investment professional | 2007–2008 | Private equity experience |
| Lehman Brothers | Analyst, Leveraged Finance | 2005–2007 | Investment banking experience |
External Roles
| Organization | Role | Years |
|---|---|---|
| SRS Investment Management | Partner | 2008–2020 |
| Metalmark Capital | Investment professional | 2007–2008 |
| Lehman Brothers | Analyst (Leveraged Finance) | 2005–2007 |
Fixed Compensation
Multi-year compensation for Brian J. Choi (as reported):
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Salary ($) | $600,000 | $624,000 | $675,000 |
| Bonus ($) | — | — | — |
| Stock Awards ($) | $3,300,136 | $1,800,200 | $2,000,060 |
| Non-Equity Incentive ($) | $1,057,500 | $726,336 | — (AIP paid 0%) |
| All Other Compensation ($) | $30,396 | $450,841 | $34,036 |
| Total ($) | $4,988,032 | $3,601,377 | $2,709,096 |
Upcoming CEO pay parameters (effective July 1, 2025):
| Component | 2025 Value/Target |
|---|---|
| Base Salary | $1,000,000 |
| Annual Incentive Target | 150% of base salary |
| 2025 Long-Term Incentive Award (grant value) | $3.75 million |
Performance Compensation
Annual Incentive Plan (AIP) design and 2024 outcome:
| Metric | Weight | Threshold | Target | Maximum | Actual 2024 | Payout |
|---|---|---|---|---|---|---|
| Adjusted EBITDA (Global) | 50% | $1,360m | $1,850m (midpoint of $1.7–2.0b range) | $2,400m | Below threshold | 0% of target |
| Individual Scorecard (quantitative KPIs) | 50% | Requires EBITDA threshold to unlock | Capped at 100% | Multiplied by 0–150% per EBITDA | Not eligible (EBITDA < threshold) | 0% of target |
Long-Term Incentive Program (LTIP) constructs:
| Award | Metric | Weighting | 2024 Goals | Vesting | Status |
|---|---|---|---|---|---|
| PSUs (2024 grant) | 3-year cumulative Adjusted EBITDA | 100% | Threshold $4.0b; Target $5.0b; Max $6.0b | Cliff vest at 3 years (Mar 2027) | Outstanding |
| PSUs (2022 grant) | 3-year cumulative Adjusted EBITDA (75%) + Variable Cost (25%) | As noted | Company achieved 112.5% of target (max EBITDA, below-threshold variable cost) | Vested Mar 2025 | Earned at 112.5% |
Individual 2024 equity grants for Choi:
| Grant Type | Grant Date | Target Units | Vesting |
|---|---|---|---|
| RSU | 3/13/2024 | 8,842 | 3 equal annual tranches (Mar 2025/26/27) |
| PSU | 3/13/2024 | 8,842 target (threshold 4,421; max 13,263) | Cliff at Mar 2027 (3-year Adjusted EBITDA) |
Equity Ownership & Alignment
Ownership and unvested awards:
| Item | Amount |
|---|---|
| Beneficial ownership (as of Feb 19, 2025) | 110,137 shares; <1% of outstanding |
| Shares acquirable within 60 days | 10,958 (RSUs) |
| Unvested RSUs (12/31/2024) | 8,842 (3/13/2024); 3,030 (3/9/2023); 9,645 (12/30/2022); 1,624 (3/9/2022) |
| Unearned PSUs outstanding (12/31/2024) | 4,421 (Mar 2027); 2,272 (Mar 2026); 5,481 (Mar 2025 achieved 112.5%) |
| Executive stock ownership guidelines | CTO/CEO thresholds: CTO 3x base; CEO 5x base; mandatory hold of net shares until threshold reached |
| Compliance status at 12/31/2024 | Each NEO met thresholds except CDIO; CTO/Choi met threshold |
| Hedging/pledging policy | Prohibits hedging, pledging, margin, and derivatives for executives; SRS has carve-out under Cooperation Agreement; Audit Committee monitors pledges |
Vesting schedule highlights relevant to potential supply:
- RSUs: Dec 30, 2025 tranche (2012/2022 grants), Mar 9, 2026 tranche (2023 grants), Mar 13, 2026/2027 tranches (2024 grants) .
- PSUs: Mar 2026 and Mar 2027 performance vesting dates subject to 3-year Adjusted EBITDA (and variable cost for 2023 PSU design) .
Employment Terms
Severance and change-in-control protection applicable to Choi (as NEO under Executive Severance Plan):
| Scenario (as of 12/31/2024) | Cash Severance | Equity Acceleration | Benefits/Perqs | Total |
|---|---|---|---|---|
| Termination without Cause | $1,373,359 | $1,709,899 | $23,584 | $3,106,842 |
| CIC + termination without Cause or Constructive Discharge | $1,373,359 | $3,386,184 | $23,584 | $4,783,127 |
| Death or Disability | — | $3,386,184 | — | $3,386,184 |
Plan mechanics:
- Executive Severance Plan provides two years of base pay; pro-rated AIP based on performance; accelerated vesting of RSUs scheduled within one year and PSUs scheduled within one year contingent on performance; one year of certain health care premiums and specified perquisites .
- Equity Plan uses double-trigger acceleration upon change-in-control plus qualifying termination or constructive discharge (material pay cut, adverse change in duties, relocation >30 miles) .
- Clawback policy compliant with Nasdaq/SEC; applies to incentive-based compensation .
Performance & Track Record
| Period | Key Performance Indicators |
|---|---|
| FY 2024 context | Revenue $11.789b; Adjusted EBITDA $628m after fleet rotation impairment; five-year TSR +181% |
| Q3 2025 under Choi (CEO) | Revenue $3.519b; Net income $359m; Adjusted EBITDA $559m, with Americas and International EBITDA up vs. prior year |
Compensation Committee & Shareholder Feedback
- Peer group spans travel, trucking, auto retail/rental; used for market review (no fixed percentile targeting) .
- 2024 Say-on-Pay support was 98.5%, and committee concluded program enjoys shareholder support .
- Pay practices include ownership guidelines, clawback, anti-hedging, no excise tax gross-ups or single-trigger CIC; limited perquisites with no tax gross-ups except standard relocation/expatriate benefits .
Related Party and Governance Notes
- SRS affiliates transact with Avis Mobility Ventures LLC; 2024: $2m expense, $3m receivables, $74m net investment in vehicle finance leases .
- Anti-hedging/pledging carve-out applies to SRS under Cooperation Agreement; Audit Committee monitors pledges .
Investment Implications
- High equity alignment: significant unvested RSUs/PSUs and mandatory holding until ownership thresholds are met; anti-hedging/pledging policies reduce misalignment risk .
- Vesting calendar suggests periodic settlement windows (Dec 2025, Mar 2026/27), which can create supply overhangs; actual selling is governed by trading windows and preclearance, and not disclosed in filings reviewed .
- Incentive design is tightly linked to Adjusted EBITDA over one- and three-year horizons; AIP paid 0% for 2024 due to below-threshold performance, while 2022 PSUs vested at 112.5%—demonstrating true pay-for-performance cyclicality .
- Near-term execution signal: Q3 2025 under Choi showed revenue growth and EBITDA expansion versus prior year, a positive early indicator ahead of 2025 full-year EBITDA targets noted earlier by the company .