Erik Hoag
About Erik Hoag
Erik Hoag is Chief Financial Officer of Travel + Leisure Co. (TNL). His CFO role is confirmed by his Sarbanes–Oxley certifications on the company’s Q3 2025 Form 10‑Q and Section 906 certification, and by company communications naming him as CFO on earnings calls and press releases . Michael A. Hug, the prior CFO, notified TNL of his intention to retire during fiscal 2025, effective as of the earlier of a successor being identified or June 1, 2025, which frames Hoag’s tenure commencement in 2025 . Company performance in 2024 included $3.9B net revenue, $411M net income, and $929M adjusted EBITDA; in Q2 2025, TNL reported $1.02B net revenue, $108M net income, and $250M adjusted EBITDA . Hoag has focused investor messaging on credit quality, delinquencies, loss provisioning (~21% full‑year provision) and securitizations, evidencing emphasis on balance sheet durability and funding cost optimization .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Travel + Leisure Co. | Chief Financial Officer | 2025–present | Led capital markets activity including a $300M term securitization at a 4.78% weighted‑average coupon (advance rate 98%), achieving a 32 bps improvement vs prior deal; guided investors on loss provisioning and delinquency trends . |
| Travel + Leisure Co. | CFO (evidence via SOX certifications) | 2025 | Signed CEO/CFO 302 and 906 certifications on Q3 2025 10‑Q, confirming role and responsibility for disclosure controls and internal control over financial reporting . |
External Roles
- Not disclosed in TNL’s 2025 proxy or recent SEC filings reviewed. No public director or external appointments noted in company materials .
Fixed Compensation
Framework and recent CFO precedent at TNL (2024 for CFO Michael A. Hug; Erik Hoag’s specific amounts not yet disclosed):
| Component | 2024 CFO Precedent | Notes |
|---|---|---|
| Base Salary | $675,531 | Annual salary; 2024 increases for NEOs were ~4% except CEO . |
| Target Annual Bonus (% of Salary) | 85% | Annual Incentive Plan (AIP) based 100% on Adjusted EBITDA with 25% threshold and 200% cap . |
| Long‑Term Incentive (Grant Date Fair Value) | $3,299,955 (mix of RSUs/PSUs) | Other NEOs’ mix: 75% RSUs / 25% PSUs; RSUs vest ratably over 4 years; PSUs earned 0–200% based on EPS over 3‑year period . |
| All Other Compensation | $157,061 (car lease, financial planning, 401(k)/deferred comp match, tax gross‑ups for certain perqs) | CEO receives no tax gross‑ups; other NEOs may receive perq gross‑ups (e.g., automobile, financial planning) . |
Performance Compensation
Annual Incentive and Long-Term Incentive design applicable to CFO and senior leadership (company policy; 2024 outcomes shown for CFO precedent):
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Annual Incentive – Adjusted EBITDA (Corporate/BU) | 100% (2024 design) | CFO target award = 85% of base salary | Corporate achievement 108%; Business units mixed (ND North America 120%; Travel & Membership 92%) | CFO payout 108% of target (i.e., $616,618 on $570,943 target) | Cash, paid following year . |
| PSUs – Adjusted Diluted EPS (3‑year) | 25% of NEO LTIP (CEO 50%) | Annual EPS targets set each year; average over 3 years (2024–2026) | 2022 PSU cycle (2022–2024) paid at 200% based on cumulative Adjusted Diluted EPS | Earnout 0–200% of target; CFO 2024 grant at target reflected in grant date fair value | Earn at end of 3‑year period; pro‑rata retirement treatment, actual performance determines final shares . |
| RSUs – Time‑vesting | 75% of NEO LTIP (CEO 50%) | N/A (time‑based) | N/A | N/A | Ratable vesting over 4 years (March 15 anniversaries for 2024 grants) . |
Equity Ownership & Alignment
| Policy/Status | Details |
|---|---|
| Executive stock ownership guidelines | CEO 5x salary; CFO 3x salary; other executive officers 2x; compliance window 5 years. As of Dec 31, 2024, all NEOs met guidelines (CFO status then: Michael A. Hug) . |
| Hedging/pledging | Prohibited for directors and senior executives, including pledging/margin accounts . |
| Clawback policy | Incentive Compensation Recovery Policy effective Oct 2, 2023; mandatory recovery of excess incentive-based comp for Big R/little r restatements over prior 3 fiscal years; applies regardless of misconduct . |
| Beneficial ownership | Erik Hoag’s beneficial ownership, RSU/PSU holdings, and option status not disclosed yet in proxy materials reviewed (2025 DEF 14A predates his appointment). Historical CFO (Hug) RSU/PSU and option holdings are detailed for reference in “Outstanding Equity Awards” . |
| Director/Officer Section 16 activity | No Form 4 transactions for Erik Hoag were found in the reviewed documents; consider monitoring Section 16 filings for vesting‑related sales once awards are granted [Search corpus returned none specific to Form 4; CFO role confirmed via filings] . |
Employment Terms
| Term | Company Practice | Historical CFO Precedent |
|---|---|---|
| Severance (termination without cause / constructive discharge) | Double‑trigger for cash severance following change‑in‑control; no tax gross‑ups in severance for executive officers; no cash severance solely on change‑in‑control . | 2018 CFO employment agreement (Michael A. Hug) provided severance at 200% of base salary + bonus and equity acceleration terms, plus non‑compete/non‑solicit covenants; illustrative of prior CFO economics (not necessarily Hoag’s current terms) . |
| Change‑in‑control equity | Long‑term equity (RSUs, PSUs) fully vest upon change‑in‑control under the 2006 Equity & Incentive Plan; PSUs typically vest subject to performance/ or plan terms; current plan language confirms CIC vesting of grants . | |
| Clawback & policies | Clawback (see above) and insider trading policy restricts hedging/pledging; equity grant timing policy avoids MNPI timing issues . |
Performance & Track Record
- 2024 company performance: net revenue $3.9B, net income $411M, adjusted EBITDA $929M, adjusted diluted EPS $5.75; capital returns of $377M via dividends/repurchases .
- Q2 2025 results: net revenue $1.018B (+3% YoY), net income $108M, adjusted EBITDA $250M; Vacation Ownership revenue $853M (+6% YoY), VPG $3,251 (+7% YoY); Travel & Membership revenue $166M (−6% YoY) .
- CFO credit quality commentary (Q2 2025 call): early‑year delinquencies moderated by Q2 and into July; disciplined underwriting (FICO > 740), app adoption improving usability; full‑year provision ~21%; efficient inventory recovery and repricing with cost of sales <10% .
- Capital markets execution under Hoag: $300M term securitization at 4.78% WAC with 98% advance rate; 32 bps improvement vs prior; multiple ABS tranches (A–D) highlighting funding cost management .
| Metric | Q2 2024 | Q2 2025 |
|---|---|---|
| Net Revenues ($MM) | $985 | $1,018 |
| Net Income ($MM) | $129 | $108 |
| Adjusted EBITDA ($MM) | $244 | $250 |
| Vacation Ownership Revenue ($MM) | $807 | $853 |
| VPG ($) | $3,051 | $3,251 |
| Travel & Membership Revenue ($MM) | $177 | $166 |
Compensation Governance, Peer Group, Say‑on‑Pay
- Compensation structure emphasizes pay for performance: annual incentive 100% Adjusted EBITDA for 2024; LTIP PSUs tied to Adjusted Diluted EPS over three‑year averages; RSUs time‑vested over 4 years .
- Say‑on‑pay: 78% approval in 2024; average 2020–2023 ~90%; shareholder feedback prompted added quantifiable strategic goal in 2025 AIP; maintained EPS metric in LTIP given limited comparable peer set for relative metrics .
- Peer group (2024): Hilton, Marriott, Hyatt, Hilton Grand Vacations, Marriott Vacations Worldwide, Host Hotels, Vail Resorts, Las Vegas Sands, etc.; changes for 2025: removed MGM Resorts and Royal Caribbean; added Sabre .
Equity Plan Mechanics and Outstanding Awards (Reference)
- RSUs vest 25% annually over four years (e.g., March 15 anniversaries for 2024 grants) .
- PSUs earn 0–200% based on three‑year cumulative EPS (2023 grants) or three‑year average annual EPS (2024/2025 grants); 2022 cycle paid at 200% based on cumulative EPS .
- LTIP retirement provision: RSUs continue vesting post‑retirement; PSUs vest pro‑rata on service time, performance measured at period end .
Capital Structure and Liquidity (CFO Relevance)
- Revolver refinanced June 25, 2025: $1.0B facility maturity extended to June 2030; pricing spreads reduced by 25 bps at all levels .
- Conduit facility renewed (timeshare receivables): $600MM, extended to Aug 2027 .
- Corporate debt $3.6B; non‑recourse securitized receivables debt $2.0B (as of June 30, 2025); covenant leverage ratio 3.4x .
- Senior Secured Notes due 2033: $500MM at 6.125%; proceeds to redeem 6.60% 2025 notes, repay revolver, fees; standard liens, sale‑leaseback and change‑of‑control (101%) protections; pari passu secured with revolver .
Investment Implications
- Compensation‑performance alignment: CFO incentives tied to EBITDA (annual) and EPS (long‑term) should reinforce disciplined underwriting, provisioning, and funding cost management—key drivers for VOI sales quality, cash conversion, and securitization execution .
- Retention risk appears moderate: company prohibits hedging/pledging and maintains ownership guidelines (CFO 3x salary), clawbacks, and established severance/CIC frameworks; Hoag’s specific agreement is not yet disclosed, but historical CFO terms (200% cash severance multiple) indicate competitive but not excessive protection .
- Trading signals: improvements in securitization coupons/advance rates and provisioning stability (21% full‑year provision) support funding efficiency and receivables performance; watch future proxies for Hoag’s grant sizes/vesting schedules and Section 16 filings for insider activity as vesting begins .
Note: Where Erik Hoag‑specific compensation and ownership data are not disclosed in the 2025 proxy or subsequent SEC filings reviewed, company policies and historical CFO precedent are provided for context. All quantitative and policy details above cite company documents and filings as indicated.