Estée Lauder Executive Pay Revealed

The latest executive pay packages at The Estée Lauder Cos., owner of Clinique, Mac, Smashbox and many more brands, have been revealed — including the financial terms of former group president John Demsey’s departure.

President and chief executive officer Fabrizio Freda’s total pay package for the fiscal year 2022 was $25.48 million, compared with $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.

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While his base salary increased from $1.6 million to $2.1 million, the decrease in the total package was mainly due to 50,429,620 stock awards he received in 2021.

Executive chairman William P. Lauder’s total pay package is set to come in at $9.6 million, down from just over $10 million in 2021.

Executive vice president and chief financial officer Tracey T. Travis’ pay package totaled $20.14 million, executive group president Jane Hertzmark Hudis $11.65 million and group president, international Cedric Prouvé $10.31 million.

Demsey’s, meanwhile, is set to come in at $10.36 million, up from $9.65 million, despite no longer being with the business.

Until recently he was one of the highest-ranking executives at Lauder, overseeing the likes of Smashbox, MAC, Clinique, Too Faced, Glamglow and Tom Ford Beauty. He was asked to leave the business earlier this year after he posted a meme on Instagram that contained a racial slur and joke about COVID-19.

According to the filing, Demsey retired from the company on March 4, after being placed on unpaid leave effective since Feb. 22. For fiscal 2022, Demsey received his salary as an employee through Feb. 21, coming in at $774,796.

The grants of “stock awards” and “option awards,” totaling $5.7 million in fiscal 2022, were made in September 2021, the filings showed. He received $2.76 million from its executive annual incentive plan, and $649,224 covering additional payments and benefits coverage, as well as continuation of health care benefits.

Pursuant to the terms of Demsey’s employment agreement specifically in connection with the enforced two-year, non-compete provision, he is receiving salary continuation payments of over $100,000 from July 1, 2022, through March 4, 2024, as well as health benefits and retirement plan payouts, the filings said.

“With regard to Mr. Demsey’s accumulated benefits under the RGA Plan, pursuant to the plan terms, he elected to receive a lump sum payout ($633,810), which was made to him in early fiscal 2023,” it added.

Prouvé also retired in June.

This information is being released ahead of the 2022 annual shareholders meeting, which will take place virtually on Nov. 18.

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