Earlier this week, Stéphane de La Faverie was named the Estée Lauder Cos.’ new president and chief govt officer, efficient Jan. 1. Now his pay package deal has been revealed.
Based on firm filings with the Securities and Change Fee, his base wage can be set at an annual price of $1.5 million and his combination bonus alternative at goal can be $3 million, which for fiscal 2025 can be prorated primarily based on his time within the position of president and CEO. Moreover, he’ll obtain a one-time money fee of $25,000 in reference to entry into the modification.
De La Faverie’s annual equity-award goal alternative could have a worth of at least $10 million. For fiscal 2025, his complete equity-award goal alternative can be prorated at $6.7 million, which incorporates an extra grant with worth of $3.2 million.
He may also be eligible to take part in Lauder’s Revenue Restoration and Progress Plan incentive program for fiscal 2025 and monetary 2026 at a goal alternative of 25 % of his annual fairness primarily based compensation award goal alternative, as much as a most of fifty %, the achievement of which might end in a grant of restricted inventory models in August 2025 and August 2026.
The identical SEC submitting said that efficient Jan. 1, present CEO Fabrizio Freda will function a particular adviser to the corporate till his retirement on June 30. Freda is required to commit not lower than 20 % of his time to his obligations on this position.
Throughout this era, Freda’s annual base wage price of $2.1 million will stay unchanged. His annual goal bonus alternative for fiscal 2025, which incorporates the interval he’s serving as president and CEO, and monetary 2026 will stay at $5.8 million. Pursuant to the modification, Freda will obtain an fairness award goal alternative for fiscal 2026 with a worth on the time of grant of $12.5 million.
Freda can be eligible to take part, for fiscal 2025 solely, within the PRGP incentive plan at a goal alternative of $3.1 million.
As beforehand reported, Freda’s complete pay package deal for the fiscal 12 months 2024 is $17.8 million, down from $21.8 million within the earlier 12 months and $25.4 million in 2022. A few of this can be made up of inventory choices, the total worth of which could by no means be realized as a result of fluctuations in inventory costs and vesting schedules.
William P. Lauder, who can be departing his position as govt chairman, will see his present compensation and advantages stay unchanged by means of March 1 when he retires, besides that his annual bonus payout, if any, for fiscal 2025 can be prorated as a result of his retirement.
And as William Lauder makes his transition from govt chairman to chair of the board, the place of presiding director held by Charleme Barshefsky can be changed by a brand new lead impartial director position to be held by Richard Zannino, managing director of CCMP Capital.
