Following November 2019 announcement of Trip.com Group Limited (Nasdaq: TCOM) and TripAdvisor, Inc. (Nasdaq: TRIP) joint venture, when it was said that:”Trip.com Group will have a nomination right for one TripAdvisor, Inc. Board seat commencing upon the relevant regulatory bodies’ approvals of the transaction,” we now finally know who is the person that will take the chair in the TripAdvisor Board of Directors.
It is Jane Jie Sun, one of the best known Chinese female CEOs (And CEO of Trip.com). According to SEC filing Ms. Sun will receive the same compensation as Tripadvisor’s other non-employee directors, which is summarized in Tripadvisor’s proxy statement for the annual meeting of stockholders held on June 9, 2020, which was filed with the U.S. SEC on April 28, 2020.
But what follows now is probably the most important part to TRIP stock investors. If Ms. Sun wants to keep the Board chair, Trip.com will need to purchase 6.95 million TRIP shares in the next 12 months through open market transactions.
This is 5% of all TRIP shares and this can, finally, move share price a bit higher as Trip Advisor is having a rough time since the corona crisis started. As Ms. Sun stated recently this crisis is:”almost [like] fighting a war”.