THE WHAT? Estée Lauder has unveiled the executive pay for 2023, revealing a significant cut. The total pay package for Fabrizio Freda, the President and CEO, is $21.8 million, a marked decrease from previous years.
THE DETAILS Freda’s considerable drop in total pay from $65.9 million in 2021 and $25.48 million in 2022 mainly results from the substantial stock awards he received in 2021. Despite this decline, his base salary stays unchanged at $2.1 million for another year. Other executives, including William P. Lauder and Tracey T. Travis, are also facing a reduction in their total pay packages, listed at $7.8 million and $8.3 million, respectively.
THE WHY? This reduction in executive compensation coincides with Estée Lauder’s financial struggles, as the company’s yearly forecasts have failed to meet the expectations. The ongoing challenges in recovering its stance in the Asia travel market have influenced the company’s overall financial health, leading to the pay cut for its executives.