Form 4: Estee Lauder Director Paul J. Fribourg Reports Stock Unit Grant

Director Paul J. Fribourg reports the acquisition of stock units in Estee Lauder Companies Inc. in lieu of cash retainers.

Summary

• On May 21, 2024, Paul J. Fribourg, a director of Estee Lauder Companies Inc., acquired 254.29 stock units.
• These stock units were granted in lieu of cash for quarterly board, committee chair, and committee member retainers.
• Each stock unit is convertible into cash equal to the value of one share of Class A Common Stock.
• The payout for these stock units will occur on the first business day of the calendar year following the last date of Fribourg's service as a director.
• Following the reported transaction, Fribourg beneficially owns 36,676.01 stock units.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally to positively as it aligns interests with shareholders.

Positives

• The acquisition of stock units aligns the director's interests with those of the shareholders.
• Granting stock units in lieu of cash can conserve the company's cash reserves.

Future Outlook

The stock units will be paid out in cash 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

Directors often receive stock-based compensation to align their interests with shareholders and incentivize long-term value creation. This is a common practice among publicly traded companies like Estee Lauder.

Comparison to Industry Standards

• Stock unit grants are a common form of compensation for directors in publicly traded companies.
• Companies like L'Oreal and Unilever also use stock-based compensation for their board members.
• The specific amount and terms of the grant are typical for directors of companies with similar market capitalization and industry.

Stakeholder Impact

• The stock unit grant aligns the director's interests with those of the shareholders, potentially encouraging decisions that increase shareholder value.

Key Dates