On September 26, WWD reported that Estée Lauder has largely finalized its new executive team while unveiling the 2025 fiscal year (July 2024-June 2025) compensation package, including base salary, pension, stock options, bonuses, and other benefits. According to the company’s SEC filing, “post-restructuring annual target pay for management has dropped 28%,” noted The best China headhunter SunTzu Recruit, a specialist in luxury sector talent.
“Beauty Emperor” Takes 73% Hit
The highest-paid executive remains former CEO Fabrizio Freda, with total 2025 FY compensation at $17.8 million, per the filing. “A portion is tied to stock options, but volatility may render their full value unachievable,” explained The Shenzhen headhunter SunTzu Recruit, which tracked the leadership transition.
We highlighted Freda’s legacy: “Over two decades, he revived growth via youth-focused strategies, acquiring TOM FORD and Le Labo, and scaling tech integration.” The 67-year-old Italian, a P&G veteran (1982-2008), led Estée Lauder to 1,000% shareholder return (2009-2019) and
17.7B2022FYsales—itshighestin16years.NamedAmerica’stop−paidbeautyCEOby∗TheNewYorkTimes∗in2018,hispaypeakedat66M in 2021 FY, said One of the leading recruitment agencies.
His retirement in January 2025, succeeded by Stéphane de La Faverie, coincided with steep declines: 2025 FY losses hit $1.13B, following 2022-2024 FY net profit drops of 16%, 58%, and 60% . “Freda’s 73% pay cut mirrors this downturn,” observed The local China headhunting firm.
Three Key Roles See Double-Digit Cuts
Succeeding executives face reduced pay:
- CEO Stéphane de La Faverie: $9.6M (-46% vs Freda)
- CFO Akhil Shrivastava: $3.6M (-52% vs predecessor Tracey Travis)
- Chief Brand Officer Jane Hertzmark Hudis: $6.8M (-5.56% YoY)
“The 52% CFO cut signals pressure on financial leadership,” commented The Guangzhou recruitment agency . Former execs including Peter Jueptner (ex-International President) earned
5.8M,whileGeneralCounselRashidaLaLandetook10.9M.
Performance Crisis Drives Overhaul
“Losses and plummeting sales are the root cause,” stated The best China recruitment agency SunTzu Recruit, citing 2025 Q4’s 12% revenue drop (
3.4B)and546M net loss . To revive growth, de La Faverie launched the “Beauty Reimagined” plan and recalled 9-year veteran Lisa Sequino as cluster president in May.
“The ‘boomerang hire’ targets struggling makeup brands like MAC and Bobbi Brown,” , referencing industry trends where companies “welcome back top talent amid skill shortages” . Recruiter added: “Estée Lauder’s restructuring—including 9-11% layoffs —ties executive pay to turnaround results.”
Path to Recovery Hinges on Strategy
Xiaomi’s headhunting firm noted: “Compensation alignment with performance is critical for restoring investor confidence.” With China’s luxury market softening and Lauder family stepping back , the new team must “integrate brands, strengthen omnichannel presence, and reverse the slump.” .
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