Simone Wu
Senior Vice President, General Counsel, Corporate Secretary & External Affairs at 
CHOICE HOTELS INTERNATIONAL INC /DE
CHOICE HOTELS INTERNATIONAL INC /DEExecutive
About Simone Wu
Senior Vice President, General Counsel, Corporate Secretary & External Affairs at Choice Hotels International (CHH). She serves as Corporate Secretary and signs SEC filings and shareholder materials, indicating centrality in governance, disclosure, and investor engagement . Her severance agreement dates to 2012, evidencing long tenure in the role . In 2024, CHH delivered record performance (revenue >$1.5B), adjusted operating income of $514.1M vs $495.4M target, +12% adjusted EBITDA YoY, and +13% adjusted EPS YoY; say‑on‑pay support was 99%, aligning compensation with outcomes .
Past Roles
Skip—no prior roles disclosed in proxy for Ms. Wu.
External Roles
Skip—no external directorships/roles disclosed for Ms. Wu.
Fixed Compensation
2022–2024 compensation (Summary Compensation Table):
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary ($) | $556,539 | $560,000 | $579,231 |
| Target Bonus % of Salary | Not disclosed | 60% (no change YoY) | 60% |
| Actual Cash Incentive ($) | $651,594 | $423,360 | $447,191 |
| Stock Awards ($) | $325,043 | $525,025 | $750,110 |
| Option Awards ($) | $325,024 | $175,037 | $250,039 |
| All Other Compensation ($) | $66,205 | $61,236 | $70,530 |
| Total ($) | $1,924,405 | $1,744,658 | $2,097,101 |
Perquisites and benefits components (2024 examples):
- Flexible Perquisites Plan allowance $15,000; actual reimbursements included club dues $8,556, financial/tax/legal $1,692, health/wellness $4,400, supplemental life premiums $352, at‑home cyber monitoring $5,029, Stay at Choice personal travel reimbursements $1,767 (company pays related tax gross‑up for Stay at Choice only) .
Performance Compensation
2024 Annual Cash Incentive (MIP) mechanics and outcomes
| Metric | Weighting (Wu) | Target | Actual | Payout (% of Target) | Notes |
|---|---|---|---|---|---|
| Operating Income | 60% | $495.4M | $514.1M (adjusted) | 137.5% | Adjustments for restructuring, mark‑to‑market, M&A costs, reimbursables |
| Strategic Initiatives (Brand growth, value prop, platform, talent) | 40% | Board‑approved goals | Overperformed | 115% overall; 120% for NEO achievement | Requires ≥75% OI funding to pay |
MIP payout result for Ms. Wu: Target $348,008; Actual $447,191, equal to 129% of target .
Long‑Term Incentive structure and vesting
- 2024 LTI mix: 75% PVRSUs, 25% stock options; options vest in equal annual installments over 4 years; PVRSUs cliff‑vest after 3 years based on 3‑year cumulative EPS with ±15% rTSR modifier (S&P 400 Consumer Discretionary + select hotels/REIT peers) .
- Historical PVRSU performance: 2021–2023 EPS payout 200% (no TSR modifier); 2022–2024 EPS payout 200% (no TSR modifier) .
2024 equity grant specifics (February 29, 2024):
| Award | Shares/Units | Exercise Price | Grant Date Fair Value | Vesting |
|---|---|---|---|---|
| PVRSUs | 6,701 | N/A | $750,110 | 3‑year cliff (EPS + rTSR modifier) |
| Stock Options | 6,436 | $111.94 | $250,039 | 25% per year over 4 years |
Equity Ownership & Alignment
Ownership levels and compliance:
| Item | Value |
|---|---|
| Beneficially owned shares | 48,803 |
| Right to acquire within 60 days (exercisable options) | 41,951 |
| Unvested restricted stock | 0 |
| Ownership vs guidelines | Required: 3.0x salary; Actual: 11.3x (exceeds) |
| Ownership as % of outstanding | <1% (“*”) |
Outstanding equity awards at 12/31/2024 (selected):
- Options: 2019 8,080 @ $81.15; 2020 10,290 @ $91.28; 2021 10,713 (exercisable) + 3,573 (unexercisable) @ $104.87; 2022 3,756 (exercisable) + 3,759 (unexercisable) @ $146.68; 2023 1,026 (exercisable) + 3,079 (unexercisable) @ $123.71; 2024 6,436 (unexercisable) @ $111.94 .
- Unearned PVRSUs: 4,432 (2022 grant), 8,488 (2023 grant), 13,402 (2024 grant) with indicative market values shown in proxy .
Insider selling/vesting activity (2024):
- Options exercised: 22,295 shares; value realized $1,178,550 .
- Stock awards vested: 8,117 shares; value realized $891,490 .
Policies reducing misalignment risk:
- Hedging/pledging: Associates (including NEOs) prohibited from hedging and pledging; limited exceptions apply only to Bainum family directors; no directors currently pledged .
- Clawback: Cash and equity subject to recoupment upon certain restatements (NYSE‑aligned); also embedded in 2025 LTIP .
Employment Terms
Severance agreement details:
- Agreement effective: February 13, 2012 (amended March 25, 2013) .
- Base salary at 12/31/2024: $585,000; MIP target 60% of salary .
Key provisions:
- Termination without cause / good reason: Salary continuation for 70 weeks; annual bonus paid at actual Company metrics and deemed 100% for individual objectives if termination after June 30; continued medical/dental for 70 weeks; outplacement; continued vesting for 70 weeks for post‑agreement grants; offsets for new employment; non‑compete/non‑solicit for 70 weeks; arbitration .
- Change‑of‑control (double trigger): Lump sum 200% of base salary + 200% of target bonus; immediate vesting of stock options, restricted stock, and PVRSUs (post‑agreement grants); arbitration .
Estimated payments (as of 12/31/2024):
| Scenario | Cash Severance | Salary Continuation | Health & Welfare | Outplacement | Disability Income | Life Insurance | Stock Options | PVRSUs | Total |
|---|---|---|---|---|---|---|---|---|---|
| Termination w/o cause or good reason | — | $787,500 | — | $18,000 | — | — | $266,753 | $917,191 | $1,989,444 |
| Termination following change‑of‑control | $1,872,000 | — | — | — | — | — | $382,185 | $1,868,599 | $4,122,784 |
| Disability | — | — | — | — | $1,189,500 | — | $382,185 | $1,033,472 | $2,605,157 |
| Death | — | — | — | — | — | $1,000,000 | $382,185 | $1,033,472 | $2,415,657 |
No excise tax gross‑ups on severance/change‑of‑control benefits .
Compensation Structure vs Performance Metrics
- Pay mix: 2024 TDC for NEOs is majority variable; CEO 84% at‑risk; other NEOs ~78% at‑risk, consistent with pay‑for‑performance design .
- Short‑term metrics: Operating income and strategic initiatives drive MIP; Wu weights 60%/40%; 2024 OI target $495.4M vs $514.1M adjusted actual; strategic initiatives overperformed .
- Long‑term metrics: 3‑year EPS with rTSR modifier; recent cycles paid at 200% on EPS with no rTSR adjustment (mid‑peer TSR) ; 2024 awards continue EPS+rTSR structure .
Compensation Peer Group and Governance
- Peer group used for compensation includes Hilton, Hyatt, Marriott, MGM, Wyndham, Wynn; Host Hotels; multi‑brand franchisors (Chipotle, Dine Brands, Domino’s, Wendy’s, Wingstop); others (Bloomin’, Brinker, Papa John’s, Caesars, LVS, Vail) .
- Independent consultant: Meridian; conflict‑of‑interest review found no conflicts .
- Committee composition: Human Capital & Compensation Committee is fully independent; 2024 meetings: 4 .
Say‑on‑Pay & Shareholder Feedback
- 99% approval in May 2024; extensive outreach to holders of >90% of shares; feedback informed program continuity and pay‑for‑performance emphasis .
Board Governance Notes Relevant to Role
- Corporate Secretary responsibilities include shareholder materials, voting logistics, and contact channel; 2025 proxy and meeting notice list Ms. Wu in this capacity .
Vesting Schedules and Insider Selling Pressure
- Options vesting cadence (4‑year ratable) and recent exercises: 22,295 shares exercised in 2024 (value realized $1.18M), plus 8,117 shares vested (value $0.89M). While exercises do not necessarily equal sales, they can increase tradable float and potential supply near vest/exercise windows .
- Upcoming PVRSU cliffs: 2023 grants vest Mar 2026 (if earned); 2024 grants vest Mar 2027 (if earned) based on EPS and rTSR .
Deferred Compensation
- EDCP participation: 2024 contributions $326,091; company match $26,192; aggregate earnings $414,485; year‑end balance $3,835,381 .
Risk Indicators & Red Flags
- Hedging/pledging prohibited for associates; clawback policy in place; no repricing of options without shareholder approval (embedded in 2025 LTIP) .
- Section 16(a) compliance: 2024 late filings noted for two others; no late filings cited for Ms. Wu .
- Related‑party transactions: Concentrated ownership by Bainum family; franchise arrangements disclosed; oversight via Related Party Transaction Policy and independent approvals .
Investment Implications
- Alignment: Strong—ownership at 11.3x salary vs 3x requirement, EPS‑based PVRSUs with rTSR modifier, and no hedging/pledging; say‑on‑pay at 99% suggests investor support .
- Retention risk: Moderate/managed—70‑week severance with continued vesting, and meaningful outstanding PVRSUs/options create retention hooks; change‑of‑control economics (200% salary+bonus and acceleration) imply higher cost to transition .
- Trading signals: Option exercises and scheduled vesting dates can introduce incremental share supply; watch calendar cliffs (Mar 2026, Mar 2027) and new option tranches annually .
- Program rigor: Operating income target set above CAGR, strategic initiative hurdle, and 3‑year EPS PVRSUs historically paying at maximum indicate high performance bar but recent execution has met/exceeded targets, supporting confidence in management continuity .