The Estée Lauder Companies Inc. (EL, Financial) has announced a significant leadership transition, appointing Stéphane de La Faverie as its new President and Chief Executive Officer, effective January 1, 2025. This change comes as part of a strategic move by the company's Board of Directors, with current CEO Fabrizio Freda set to transition from his role at the end of December 2024.
Stéphane de La Faverie, who joined Estée Lauder in January 2011, has been serving as Executive Group President since September 2022. His extensive experience within the company, including roles as Group President and Global Brand President, positions him well to lead Estée Lauder into its next phase of growth and innovation.
Fabrizio Freda will continue to contribute to the company as a Special Advisor until his retirement on June 30, 2026. During this period, he will maintain an annual base salary of $2,100,000 and an annual target bonus opportunity of $5,775,000. Additionally, he will receive an equity award target opportunity valued at $12,500,000 for fiscal 2026.
In another key leadership change, William P. Lauder will step down from his role as Executive Chairman following the Annual Meeting of Stockholders on November 8, 2024. He will retire as an employee on March 1, 2025, but will continue to serve as Chair of the Board, receiving compensation consistent with the company's program for non-employee directors.
These executive transitions are accompanied by amendments to employment agreements for both Mr. de La Faverie and Mr. Freda, outlining their roles, compensation, and benefits during this period of change. The company aims to ensure a smooth transition while maintaining its commitment to growth and shareholder value.
Investors and stakeholders will be closely monitoring these changes as Estée Lauder navigates this pivotal moment in its leadership structure, with an eye on how these strategic moves will impact the company's future performance and market position.
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