Recently, Estée Lauder has unveiled its executive compensation packages for fiscal year 2024, revealing reductions across the board. Chief Executive Officer Fabrizio Freda will receive a total pay package of $17.8 million, down from $21.8 million in 2023 and $25.4 million in 2022. His compensation package has reclined 18.3% year-on-year compare to last year.
The decline comes as Freda prepares to retire next year after leading the company since 2009. A successor has not yet been named. Freda’s compensation includes stock options, which may vary in actual value based on market conditions and vesting periods.
Executive Chairman William P. Lauder’s compensation is set at $6.9 million, down from $7.8 million the previous year. Executive Vice President and CFO Tracey T. Travis will receive $7.9 million, also lower than last year’s $8.3 million, as she prepares to retire and be succeeded by Akhil Shrivastava. Other executives such as Jane Hertzmark Hudis and Stéphane de La Faverie will see slight reductions in their pay packages, at $7.2 million and $5.9 million, respectively. The median total compensation for all global employees, excluding Freda, stands at $34,711 for fiscal 2024.
According to the latest financial report, Estée Lauder records $15.61 billion in net sales, down 2% from the previous year’s $15.91 billion. Estée Lauder has faced challenges recovering from the pandemic, especially in its Asia travel market and Chinese operations, which have lagged expectations. As a result, the company’s forecasts for fiscal 2025 show modest growth, with projected net sales ranging from a 1% decrease to a 2% increase, falling short of analysts’ expectations of over 5% growth. The company is implementing its Profit Recovery and Growth Plan to boost operating profits by $1.1 billion to $1.4 billion. However, navigating the coming year may prove challenging.
