Estée Lauder’s executive compensation for fiscal year 2023 was announced yesterday (Sept. 28) in a filing with the SEC.
According to the filing, President and CEO Fabrizio Freda’s total compensation for fiscal year 2023 will be $21.8 million, a portion of which will be comprised of stock options, a decrease of $3.68 million compared to $25.48 million in 2022, and $65.9 million in total compensation in 2021.
The filing stated that the decrease in compensation was primarily due to the grant of additional (non-annual) PVUs and PSUs to him on March 11 of fiscal year 2021 (the “March 2021 PVU and PSU Grant”), with a total grant date fair value of $40 million.
In fiscal 2023, there were declines observed in the pay packages of other executives as well. The total pay package for Executive Chairman William P. Lauder is projected to be $7.8 million, a decrease from $9.6 million in 2022. Similarly, Executive Vice President and CFO Tracey T. Travis’ package amounts to $8.3 million, lower than the $14 million in 2022.
The total pay package for Executive Group President Jane Hertzmark Hudis stands at $7.2 million, down from $11.6 million in 2022, while Group President of International Peter Jueptner is also set at $7.2 million.
The reduction in pay packages indicates that the company may be responding to pressures from shareholders to limit executive compensation. The company’s net sales for the full year of fiscal 2023 decreased by 10% to $15.91 billion.