Estée Lauder Unveils 2024 Executive Pay
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, chief executive officer Fabrizio Freda’s total pay package for the fiscal year 2024 is $17.8 million, down from $21.8 million in the previous year and $25.4 million in 2022, 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.
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As previously reported, Freda, the longtime CEO who has been at the helm since 2009, will retire at the end of next year. A successor has yet to be named.
Elsewhere, executive chairman William P. Lauder’s total pay package is set to come in at $6.9 million, down from $7.8 million in 2023, and executive vice president and chief financial officer Tracey T. Travis’ package will total $7.9 million, lower than $8.3 million in 2023. Travis is also set to retire and will be succeeded by Akhil Shrivastava.
Executive group president Jane Hertzmark Hudis’ total pay package will be $7.2 million, a touch lower than the previous year, while Stéphane de La Faverie, executive group president, will see his total compensation come in at $5.9 million.
The median total compensation of all of Lauder’s global employees for fiscal 2024, excluding Freda, was $34,711.
The company has struggled to bounce back after the pandemic as the Asia travel market and its Chinese business did not recover as quickly as it hoped.
Fiscal 2025 is lining up to be another tricky year, too, despite the company’s work through its Profit Recovery and Growth Plan to rev up the business and drive incremental operating profit of $1.1 billion to $1.4 billion.
In its latest earnings report, Lauder said reported and organic net sales are forecast to range between a decrease of 1 percent to an increase of 2 percent in its fiscal 2025, versus the prior year. Analysts had penciled in growth of more than 5 percent.
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