Form 4: Estee Lauder Director Barry Sternlicht Receives Stock Units in Lieu of Cash

Director Barry Sternlicht received stock units in lieu of cash for quarterly board and committee member retainers.

Summary

• Barry S. Sternlicht, a director of Estee Lauder Companies Inc, received stock units in lieu of cash for quarterly board and committee member retainers on May 21, 2024.
• The transaction involved the acquisition of 203.43 stock units, each convertible into cash equal to the value of one share of Class A Common Stock.
• The price of the derivative security was $132.72.
• Following the reported transaction, Sternlicht beneficially owns 43,019.63 derivative securities.
• The stock units will be paid out the first business day of the calendar year following the last date of Sternlicht's service as a director of the Company.

Sentiment

Score: 7

Explanation: The document reflects a standard compensation practice, indicating a stable and well-governed company. The sentiment is neutral to slightly positive.

Positives

• The grant of stock units aligns the director's interests with those of the shareholders.
• The director is incentivized to improve the company's performance.

Future Outlook

The stock units will be paid out the first business day of the calendar year following the last date of the Reporting Person's service as a director of the Company.

Industry Context

Granting stock units to board members is a common practice to align their interests with shareholders and incentivize long-term value creation. This is a standard form 4 filing related to director compensation.

Comparison to Industry Standards

• Stock-based compensation for board members is a common practice among publicly traded companies, including Estee Lauder's competitors such as L'Oreal, Unilever, and Procter & Gamble.
• The specific amount and terms of the stock unit grants would need to be compared to industry benchmarks to assess whether they are in line with market practices.

Stakeholder Impact

• Shareholders: Aligns director's interests with company performance.
• Employees: No direct impact.
• Customers: No direct impact.
• Suppliers: No direct impact.
• Creditors: No direct impact.

Key Dates