Booking.com to repay $110 million in public subsidies in the Netherlands
17-04-24
Booking Holdings Inc., a major U.S. travel company, announced on Friday its decision to repay $110 million in government aid received during the COVID-19 crisis. This move comes in response to scrutiny from Dutch lawmakers regarding the firm’s executive compensation in 2020.
The company, which disclosed this in a U.S. Securities and Exchange Commission filing, received substantial support, including $78 million from the Netherlands, where its largest subsidiary is based. The aid was initially accepted during a period of significant business downturn and uncertainty about the travel industry's recovery timeline.
Booking Holdings faced criticism after reports surfaced of its CEO, Glenn Fogel, receiving $7.1 million and CFO David Goulden receiving $24 million in total compensation for 2020. Despite debates in the Dutch parliament, the country’s social affairs minister confirmed that there was no legal obligation for the company to return the funds.
The executive payments, primarily in stock options and linked to future performance, including hiring and retention bonuses for Goulden, were defended as aligning with industry norms.
Leslie Cafferty, a spokesperson for Booking, expressed the company's gratitude towards the Dutch government for its support, which helped sustain employment during challenging times. "While we are not fully recovered, we acknowledge the concerns of the Dutch society and are taking them seriously," said Cafferty.
Booking reported a $12.5 billion operating loss in 2020, a stark contrast to the $6.6 billion operating income in 2019. However, the company's shares have since rebounded, reaching all-time highs as the travel sector anticipates recovery this year.
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