The latest executive pay packages at The Estée Lauder Cos., owner of Clinique, MAC Cosmetics, Tom Ford and many more brands, have been revealed.
First up, president and chief executive officer Fabrizio Freda’s total pay package for the fiscal year 2023 is $21.8 million, compared with $25.48 million in 2022 and $65.9 million in 2021, according to filings with the Securities and Exchange Commission. Some of this will be made up of stock options, the full value of which might never be realized due to fluctuations in stock prices and vesting schedules.
More from WWD
The decrease in the total package was mainly due to 50,429,620 stock awards he received in 2021. His base salary remained at $2.1 million for the second year in a row.
There had been speculation earlier this year that Freda could be on his way out amid pressure from a billionaire investor, but this never transpired and the company backed its CEO in an internal memo.
Elsewhere, executive chairman William P. Lauder’s total pay package is set to come in at $7.8 million, down from $9.6 million in 2022 and executive vice president and chief financial officer Tracey T. Travis’ package totals $8.3 million, lower than $14 million in 2022.
Then, Jane Hertzmark Hudis, executive group president’s total pay package comes in at $7.2 million, down from $11.6 million in 2022, while Peter Jueptner, group president of international, is also set at $7.2 million.
In August, The Estée Lauder Cos.’ full-year forecasts fell short of Wall Street estimates as the company’s struggles to regain footing in the Asia travel market continue, despite a better than expected set of fourth-quarter results.
Lauder, which has a much bigger travel retail business than some of its competitors, has seen Asia travel retail pressured by the slower-than-anticipated recovery from the COVID-19 pandemic, especially in the popular vacation resort area Hainan. This in turn led its overall global travel business’ organic sales to slide 34 percent in its 2023 fiscal year. At the same time, U.S. sales have yet to climb back to pre-pandemic levels, while its California brands — Smashbox, Too Faced and Glamglow — have all initiated layoffs in the past year as those businesses face challenges.
Best of WWD