LEONARD LAUDER PAID $5.3M IN YEAR
NEW YORK — For Leonard Lauder, it was a very good year indeed.
The chairman and chief executive officer of Estee Lauder Cos. Inc. earned $5.3 million in its fiscal year ended June 30, a heady 24.3 percent increase over the previous year.
Lauder’s compensation consisted of a $1.7 million base salary, $2.8 million bonus and $885,087 in other compensation, largely for insurance premiums, according to the company’s just-released proxy statement.
In the prior year, Lauder was paid $4.3 million with a $1.6 million base salary, $1.7 million bonus and $993,835 as a payment for insurance.
Lauder’s annual bonus is determined by how much earnings for his company exceed 3.5 percent of sales.
Last year, Lauder’s net earnings were $197.6 million, or 5.8 percent of total sales of $3.2 billion.
Fred H. Langhammer, president and chief operating officer, was the second highest paid executive, earning $4.65 million against $4.5 million the year before. The compensation included $1.5 million in restricted stock awards in both years.
Daniel J. Brestle, president of Clinique, earned $1.58 million against $980,000; Robin R. Burns, president of Estee Lauder USA and Canada, $1.4 million versus $1.8 million last year; Saul R. Magram, senior vice president, general counsel and secretary, $1.7 million versus $1.64 million; Jeanette S. Wagner, president of Estee Lauder International, $1.8 million versus $1.7 million.
These executives also received stock options exercisable at $42.75 each. Leonard Lauder got 500,000 shares; Langhammer, 200,000 shares, and Brestle, Burns, Magram and Wagner, 50,000 each.
The proxy also noted that Mrs. Estee Lauder, a founder and the mother of Leonard, received $15.1 million in royalties for use of the Estee Lauder trademark outside the U.S. Mrs. Lauder sold these rights to the company in 1969, with royalties continuing until her death.
The firm’s annual meeting will be held at The Essex House on Nov. 12.