01—Abstract
Summary
Summary of the 8-K filed July 23, 2024. Cited figures are marked; the original filing is the authoritative source.
The Estée Lauder Companies Inc. announced in this Form 8-K that Akhil Shrivastava will become Executive Vice President and Chief Financial Officer effective November 1, 2024.
He was appointed on July 11, 2024, and is currently Senior Vice President – Corporate Controller. He previously served as Senior Vice President and Corporate Treasurer from December 2020 through June 2024, and held finance roles in brand cluster groups and the Estée Lauder brand from 2019 onward. He joined the Company in August 2015.
Shrivastava will succeed Tracey T. Travis, who announced her intention to retire on June 30, 2025, in a July 11, 2024 press release and a July 16, 2024 Form 8-K. Effective November 1, 2024, Travis will become Executive Vice President, Senior Adviser.
The transition gives investors a defined handover period, since Travis remains with the Company in an advisory role after the CFO change. Under his employment agreement dated July 23, 2024, Shrivastava will be an employee-at-will. His base salary will be set at an annual rate of $900,000,a with an aggregate target bonus opportunity of $1,000,000, both pro-rated for the portion of the year in his new role.
The recommended fiscal 2025 annual equity-award target is valued at $1,900,000b before application of his individual performance percentage. The agreement's termination provisions are substantially the same as those for the Company's other named executive officers, as described in its September 28, 2023 proxy statement.
02—Key points
Key Highlights
- Akhil Shrivastava, currently Senior Vice President – Corporate Controller, was appointed Executive Vice President and Chief Financial Officer effective November 1, 2024.
- Tracey T. Travis, the current CFO, announced her intention to retire on June 30, 2025, and will become Executive Vice President, Senior Adviser effective November 1, 2024.
- Shrivastava's employment agreement, dated July 23, 2024, sets a base salary at an annual rate of $900,000 effective November 1, 2024.
- His aggregate target bonus opportunity is $1,000,000, pro-rated for the months in the year he holds the new position.
- The recommended fiscal 2025 annual equity-award target is valued at $1,900,000, before application of his individual performance percentage.
- Benefits may be modified by the Compensation Committee at any time other than in contemplation of or after a Change of Control, with any modification effective no sooner than two years after approval.
- The full employment agreement is filed as Exhibit 10.1 to this Form 8-K.
03—Questions
Frequently Asked Questions
Who is the new Chief Financial Officer of The Estée Lauder Companies, and when does he take over?
Akhil Shrivastava was appointed Executive Vice President and Chief Financial Officer, effective November 1, 2024. He is currently Senior Vice President – Corporate Controller and joined the Company in August 2015.
What happens to the current CFO, Tracey T. Travis?
Travis announced her intention to retire on June 30, 2025. Effective November 1, 2024, she will become Executive Vice President, Senior Adviser, succeeding to no longer be CFO upon Shrivastava's appointment.
What compensation has been set for the new CFO?
Effective November 1, 2024, his base salary will be $900,000 annually, with an aggregate target bonus opportunity of $1,000,000, both pro-rated for the year. The recommended fiscal 2025 equity-award target is valued at $1,900,000 before application of his individual performance percentage. Equity grants will be determined by the Stock Plan Subcommittee.
Are the new CFO's termination terms different from those of other executives?
The termination provisions are substantially the same as those for the Company's other named executive officers, as described in the September 28, 2023 proxy statement under 'Executive Compensation – Potential Payments Upon Termination of Employment or Change in Control.'
04—Continue