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Choice Hotels standardizes and updates executive severance framework

Story Highlights
  • Choice Hotels adopted a new executive severance template in 2025, emphasizing lump-sum payments, clarified terms and regulatory compliance.
  • The company amended existing executive agreements to align with Section 409A, tax withholding rules and updated protections, standardizing its severance practices.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Choice Hotels standardizes and updates executive severance framework

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The latest announcement is out from Choice Hotels ( (CHH) ).

On December 31, 2025, Choice Hotels International, Inc. updated its executive non-competition, non-solicitation and severance framework by entering into a new Non-Competition, Non-Solicitation and Severance Benefit Agreement with Chief Segment and International Operations Officer Raul Ramirez and designating this revised 2025 agreement as the template for future executive officers, subject to board committee approval. The 2025 agreement shifts severance to single lump-sum payments, refines key definitions such as change in control and good reason, adds cooperation requirements, clarifies tax withholding, reinforces employees’ rights to communicate with government agencies and protections under labor and trade secrets laws, and includes more detailed provisions to address Section 409A of the Internal Revenue Code. On the same date, Choice amended existing severance agreements with executives Dominic Dragisich, David Pepper, Scott Oaksmith and Simone Wu to align severance timing, tax withholding and protected-rights language with Section 409A and the updated 2025 template, signaling a broader standardization and compliance-focused tightening of its executive compensation and post-employment protections framework.

The most recent analyst rating on (CHH) stock is a Sell with a $99.00 price target. To see the full list of analyst forecasts on Choice Hotels stock, see the CHH Stock Forecast page.

Spark’s Take on CHH Stock

According to Spark, TipRanks’ AI Analyst, CHH is a Neutral.

Choice Hotels’ overall stock score is driven by strong earnings call results and undervaluation, offset by high financial leverage and bearish technical indicators. The company’s profitability and strategic international expansion are positive, but financial risks and market momentum concerns weigh on the score.

To see Spark’s full report on CHH stock, click here.

More about Choice Hotels

Choice Hotels International, Inc. operates in the hospitality and lodging industry, primarily franchising hotel brands and providing related services to hotel owners and operators across various market segments and geographies.

Average Trading Volume: 674,690

Technical Sentiment Signal: Sell

Current Market Cap: $4.6B

See more insights into CHH stock on TipRanks’ Stock Analysis page.

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