Form 4: Paul J. Fribourg Acquires Stock Units in The Estee Lauder Companies Inc.

Director Paul J. Fribourg acquired stock units in The Estee Lauder Companies Inc. on February 27, 2024, as compensation for board and committee services.

Summary

• On February 27, 2024, Paul J. Fribourg, a director of The Estee Lauder Companies Inc., acquired 227.25 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 price of the stock units was $148.51.
• Following the transaction, Fribourg directly owns 36,261.9 derivative securities.
• The stock units will be paid out on the first business day of the calendar year following the last date of Fribourg's service as a director.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and expected business practice. The sentiment is neutral to slightly positive as it aligns director interests with shareholders.

Positives

• The acquisition of stock units by a director demonstrates alignment with shareholder interests.
• Granting stock units in lieu of cash preserves the company's cash reserves.

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

Stock-based compensation is a common practice for directors and executives in publicly traded companies, aligning their interests with those of shareholders.

Stakeholder Impact

• Shareholders may view the stock unit grant positively as it aligns the director's interests with the company's performance.
• The company's cash flow is preserved by issuing stock units instead of cash.

Key Dates