Laura A. Fuentes
Hilton Worldwide HoldingsAbout Laura A. Fuentes
Laura A. Fuentes, 49, is Executive Vice President and Chief Human Resources Officer at Hilton, leading the global HR function and, since 2024, Hilton Supply Management (HSM), the company’s supply chain organization . She joined Hilton in 2013 (Chief Talent Officer prior to becoming CHRO in 2020) after six years at Capital One and earlier roles at McKinsey; she holds a B.S. (UVA), an M.S. in Structural Engineering (UT Austin), and an M.B.A. (Columbia) . Under Hilton’s 2024 performance, the company delivered Net Income of $1,539M and Adjusted EBITDA of $3,429M, with comparable system-wide RevPAR growth of 2.7%, and 1-year TSR of $225.46 on a $100 base, underscoring alignment of incentives with value creation . Within her remit, Fuentes amplified Hilton’s award‑winning culture and executed global HR systems/programs that drove high engagement and retention; HSM achieved its Adjusted EBITDA 5‑year growth plan ahead of schedule .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Hilton | EVP & Chief Human Resources Officer | 2020–present | Leads HR globally; since 2024 also leads HSM supply chain; executed global HR strategy and programs; advanced talent pipeline; achieved HSM Adjusted EBITDA 5-year growth plan ahead of schedule . |
| Hilton | Chief Talent Officer | Pre‑2020 | Oversaw talent, total rewards, people analytics, HR strategy . |
| Capital One Financial | Corporate strategy and HR roles | 6 years | Led workforce analytics, recruitment, and compensation; built analytical HR capabilities . |
| McKinsey & Company | Consultant (Madrid, New York, Washington D.C.) | — | Served clients in financial services and non-profit sectors . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Chipotle Mexican Grill, Inc. | Director | — | Current public company board . |
| UVA McIntire School of Commerce | Advisory Board Member | — | University advisory role . |
| Make‑A‑Wish Mid‑Atlantic | Vice Chair, Board of Directors | — | Non‑profit leadership . |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Year‑End Base Salary ($) | $731,250 | $760,500 |
| Salary Earned ($) | $725,813 | $754,875 |
Notes:
- Base salary increases for Fuentes were consistent with market practices and corporate team member increases; 2023→2024 increase of 4.0% .
Performance Compensation
Annual Cash Incentive (2024)
| Item | Detail |
|---|---|
| Target % of Base | 100% of base salary |
| Weighting | Other NEOs: 40% Financial (Annual Adjusted EBITDA), 60% Business Area & Organizational Strength (Travel with Purpose, Human Capital Management, Customer Promise) |
| Financial Payout | 123% of target |
| Business/Org Payout | 129% of target |
| Total Payout | 127% of target |
| Actual Paid ($) | $962,945 |
Long‑Term Incentive Program (Structure)
| Instrument | Weight | Vesting | Key Performance Metrics |
|---|---|---|---|
| PSUs | 50% | 3‑year cliff (e.g., 2024 grants vest 12/31/2026) | Equally weighted: Adjusted EBITDA, FCF per Share, Net Unit Growth (CAGR), RevPAR Index (RPI) Growth; max payout 200% |
| RSUs | 25% | Ratable over 2 years | Time‑based vesting |
| Stock Options | 25% | Ratable over 3 years; exercise price = grant date close | Time‑based; options do not pay dividends; no repricing without stockholder approval |
2024 Grants (Fuentes)
| Award | Grant Date | Quantity/Terms | Grant Date Fair Value ($) |
|---|---|---|---|
| RSUs | 2/28/2024 | 3,038 units; 2‑yr ratable vest | $619,630 |
| Stock Options | 2/28/2024 | 8,698 options; strike $203.96; 3‑yr ratable vest; expire 2/28/2034 | $619,733 |
| PSUs (Target) | 2/28/2024 | 3,038 target units; threshold 50%, max 200%; vest 12/31/2026 | $1,239,465 |
Realized and Historical PSU Outcomes
| Item | Detail |
|---|---|
| 2022 PSU Cycle Payout | Total payout certified at 153% of target (performance through 12/31/2024) |
| 2022 PSU Settlement (Fuentes) | 9,347 shares delivered; value $2,421,808 (settled based on 2/27/2025 close $259.10) |
2024 Vests and Exercises (Fuentes)
| Item | Quantity | Value |
|---|---|---|
| Options Exercised | 8,594 shares | $1,454,289 realized |
| Stock Awards Vested (RSUs/PSUs) | 12,747 shares | $3,006,796 realized |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 70,184 shares; <1% of outstanding |
| Vested Options Included | 52,161 shares underlying vested options included in beneficial ownership |
| RSUs Unvested at 12/31/2024 | 3,038 shares; market value $750,872 (based on $247.16 close) |
| PSUs Unearned (2023 grants) | 13,092 units; payout value $3,235,819 (at $247.16) |
| PSUs Unearned (2024 grants) | 7,597 units; payout value $1,877,675 (at $247.16) |
| Options Unexercisable | 8,698 (2024 grant, $203.96 strike, exp. 2/28/2034); 6,969 (2023 grant, $146.19 strike, exp. 3/2/2033); 3,005 (2022 grant, $150.67 strike, exp. 2/25/2032) |
| Ownership Guidelines | Executives must hold 3x base salary; all NEOs currently satisfy; disposal restrictions apply until met |
| Pledging/Hedging | Prohibited for officers and directors under Insider Trading Policy |
Employment Terms
- Severance Plan: Cash severance equal to 2.0x the sum of base salary and target annual cash incentive for NEOs; for Fuentes, Qualifying Termination cash severance $3,042,000; under CIC (double trigger) cash severance $3,042,000; death/disability prorated annual incentive ($760,500 shown in table) .
- Equity Treatment: Double trigger CIC accelerates RSUs and options; PSUs vest based on actual performance through most recent completed quarter or Committee determination; death/disability triggers immediate vesting (PSUs at target for 2024 grants; RSUs and options immediate vest) .
- Potential Payments (as of 12/31/2024): Total value for Fuentes—Qualifying Termination $3,186,619; CIC $9,541,944; Death/Disability $6,157,963; includes benefits continuation $35,644, outplacement $30,000, and other benefit $78,975 .
- Restrictive Covenants: Post‑employment non‑compete and non‑solicit for 12 months; indefinite confidentiality, trade secrets, and non‑disparagement; clawback applies to equity awards .
- Clawback Policy: Compliant with SEC/NYSE Dodd‑Frank rules; recovery of excess incentive pay after restatements or material non‑compliance .
- Tax Gross‑Ups: None; company does not provide tax gross‑ups .
- Deferred Compensation: No EDCP balance or activity for Fuentes in 2024; EDCP is frozen .
- Perquisites: $13,800 company 401(k) match in 2024; no personal aircraft usage reported for Fuentes .
Compensation Structure and Multi‑Year Detail
| Component ($) | 2023 | 2024 |
|---|---|---|
| Salary | $725,813 | $754,875 |
| Stock Awards (RSUs/PSUs FASB ASC 718) | $1,640,398 | $1,859,095 |
| Option Awards (FASB ASC 718) | $546,849 | $619,733 |
| Non‑Equity Incentive (Annual Cash Incentive) | $1,068,724 | $962,945 |
| All Other Compensation | $16,950 | $13,800 |
| Total | $3,998,734 | $4,210,448 |
Equity Vesting Schedules and Overhang
| Instrument | Grant(s) | Vesting Cadence | Near‑Term Overhang Indicators |
|---|---|---|---|
| RSUs | 3,038 (2/28/2024); plus 1,870 from 3/2/2023 still unvested | 2‑year ratable vest | RSU tranches vesting in 2025 and 2026 may add supply on vest dates |
| PSUs | 7,597 (2024 grant); 13,092 (2023 grant) unearned | 3‑year cliff (2023 cycle ends 12/31/2025; 2024 cycle ends 12/31/2026) | Certification/settlement timing (Q1 after performance period) can concentrate delivery/sale windows |
| Options | 8,698 (2024, $203.96); 6,969 (2023, $146.19); 3,005 (2022, $150.67) unexercisable | 3‑year ratable vest (begin ~March 3 following grant) | Recent exercises: 8,594 in 2024 ($1,454,289 realized), indicating some liquidity needs; expirations extend to 2034 |
Governance, Peer Group, and Shareholder Feedback
- Executive Compensation Peer Group (maintained in Aug 2024): Hospitality (Hyatt, Marriott, Wyndham), Travel (Booking, Carnival, Expedia, Las Vegas Sands, MGM, Royal Caribbean, United Airlines, Wynn), Global Consumer & Restaurants (Capital One, McDonald’s, NIKE, Starbucks, Disney, Yum! Brands) .
- Say‑on‑Pay (May 2024): Advisory approval of 2023 NEO pay ~92% of votes cast .
- Key Practices: Double‑trigger CIC; no repricing or buyouts of underwater options without stockholder approval; no dividends on unvested equity; robust ownership guidelines; hedging/pledging prohibitions .
Investment Implications
- Strong alignment: High share of at‑risk equity (PSUs/RSUs/options) tied to multi‑year Adjusted EBITDA, FCF per share, NUG CAGR, and RPI Growth supports durable pay‑for‑performance; recent company results (+11% YoY Adjusted EBITDA) improved PSU trajectory and CAP sensitivity via stock price and PSU marks .
- Retention risk moderated: 2.0x severance multiple and double‑trigger equity protection reduce voluntary departure risk; restrictive covenants (12‑month non‑compete/non‑solicit) and strong ownership requirements further anchor retention .
- Near‑term selling pressure: 2025–2026 RSU tranches and PSU settlements (2023 cycle in early 2026; 2024 cycle in early 2027) can create episodic supply; 2024 option exercises (8,594 shares) show willingness to monetize but expirations are long‑dated, limiting forced exercise pressure .
- Governance quality: No pledging/hedging; no tax gross‑ups; high say‑on‑pay support (~92%); limited perquisites—signals shareholder‑friendly posture, reducing governance discount .