Akhil Shrivastava
ESTEE LAUDER COMPANIESAbout Akhil Shrivastava
Executive Vice President and Chief Financial Officer of The Estée Lauder Companies (EL) since November 1, 2024; age 52 as of August 13, 2025 . He joined EL in 2015 after 18 years at Procter & Gamble in finance leadership (including Finance Director for Gillette North America) and holds an engineering degree from Engineering College, Rewa (India) and a Master’s in Finance & Control from Delhi University . As CFO, he leads global finance, accounting, tax, treasury, investor relations, and new business development, and co-leads enterprise finance and strategy initiatives tied to the Profit Recovery and Growth Plan (PRGP) to improve inventory, cash and costs . FY2025 EAIP enterprise outcomes reflected below‑target profitability (EPS and operating margin below threshold) with Net Sales and ROIC between threshold and target, producing an Enterprise Modifier of 80% .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| The Estée Lauder Companies | EVP & CFO | Nov 2024–present | Leads global finance, accounting, tax, treasury, IR and new business development; member of Executive Leadership Team and key enterprise committees |
| The Estée Lauder Companies | SVP, Corporate Controller | Jul 2024–Oct 2024 | Oversaw accounting, FP&A, international/online finance, pricing and value chain finance |
| The Estée Lauder Companies | SVP & Corporate Treasurer | Dec 2020–Jun 2024 | Led core finance functions, enterprise risk, real estate, and retirement fund oversight |
| The Estée Lauder Companies | SVP, Global Finance & Strategy (Brand Cluster) | Jan 2019–Nov 2020 | Allocated resources across brands/regions/channels to maximize growth opportunities |
| The Estée Lauder Companies | VP, Global Finance & Strategy (Estée Lauder brand) | 2015–2018 | Strategic finance leadership for flagship brand |
| Procter & Gamble | Finance leadership incl. Gillette NA Finance Director | 18 years to 2015 | Multi‑region finance and leadership roles prior to EL tenure |
External Roles
- No external public company directorships disclosed in company filings reviewed .
Fixed Compensation
| Metric | FY2025 | FY2026 (Target/Rate) |
|---|---|---|
| Base salary (paid/rate) | $840,333 | $900,000 (annual rate) |
| Target annual bonus (EAIP) | $836,562 (target opportunity) | $1,040,000 |
| Target annual equity opportunity | $1,900,000 (FY2025 target at appointment) | $1,900,000 |
| All other compensation (perqs, etc.) | $51,477 | — |
Perquisites and benefits: up to $15,000 annual perquisite reimbursement; up to $5,000/year for financial counseling; Executive Automobile Program ($1,100/month); company‑paid additional $5 million term life insurance; company-paid travel for spouse/partner on up to two business itineraries per year .
Performance Compensation
Annual Incentive (EAIP) – FY2025
Enterprise Modifier (company-wide metrics):
| Metric | Weight | Target | Actual (% of Target) | Payout (% of Opportunity) |
|---|---|---|---|---|
| Diluted EPS | 25% | $2.90 | 52.0% | 0.0% |
| Operating Income (OI) Margin % | 25% | 11.3% | 71.0% | 0.0% |
| Net Sales | 30% | $15.79 billion | 90.9% | 69.5% |
| ROIC % | 20% | 8.0% | 68.8% | 56.9% |
| Enterprise Modifier (weighted) | — | — | — | 80.0% |
Business Unit Multiplier (CFO):
| Component | Weight | Payout (% of Target) |
|---|---|---|
| Business Unit Strategic Goal (Functions Average) | 10% | 111.2% |
| Business Unit Strategic Goals (Individual) | 20% | 107.0% |
| Total Company Net Sales | 30% | 75.4% |
| Total Company NOP Margin | 30% | 0.0% |
| Weighted Forecast Accuracy | 10% | 110.4% |
| Business Unit Payout (weighted) | — | 67.0% |
Payout summary:
| EAIP | Target ($) | Payout % | Actual ($) |
|---|---|---|---|
| FY2025 | $836,562 | 53.0% | $443,000 |
Notes: EAIP pool set at 3% of net operating profit plan; Compensation Committee retains negative discretion; total FY2025 payouts were less than the approved pool .
Long-Term Incentives
FY2025 annual grants (August 27, 2024) under Share Incentive Plan:
| Instrument | Grant date | Threshold (#) | Target (#) | Maximum (#) | Exercise/Base Price | Grant-date Fair Value ($) |
|---|---|---|---|---|---|---|
| Performance Share Units (PSUs) | 8/27/2024 | 4,910 | 9,820 | 15,712 | — | $911,983 |
| Restricted Stock Units (RSUs) | 8/27/2024 | — | 9,820 | — | — | $911,983 |
| Stock Options | 8/27/2024 | — | — | — | $92.87 | $456,055; 15,565 options |
PSU design: FY2025 annual PSU metrics are 3‑year CAGRs through FY2027 for Net Sales (40%), Diluted EPS (40%), and ROIC (20%), with a 160% maximum; awards subject to automatic adjustments and cumulative positive net earnings condition . The FY2023 annual PSU cycle (granted Sept 2022) paid 0% for the three‑year period ended June 30, 2025 (below threshold across metrics) .
FY2026 program changes and grants:
- LTI mix increased stock options to 60% of total LTI value for executive officers and eliminated PSUs for FY2026 to strengthen direct alignment with stockholder value; corresponding EAIP leverage also increased (max 175%) with a new 20% Strategic Initiatives measure added to the Enterprise Modifier .
- FY2026 target equity opportunity: $1.9 million; August 2025 equity grants valued at approximately $1.88 million (60% options, 40% RSUs) .
- PRGP Incentive Program (PRGP IP) RSU: Awarded August 28, 2025 at $794,200 based on 167.2% results vs a 25% target of annual equity; unvested PRGP IP RSUs generally forfeit on voluntary termination (if not retirement‑eligible), pro‑rate on involuntary termination without cause, and include dividend equivalents; retirement‑eligible executives continue vesting on the original schedule . Company 10‑Q indicates one‑time PRGP grants issued in Q1 FY2026 are scheduled to cliff vest in fiscal 2028 (program‑wide) .
Equity Ownership & Alignment
| Item | Amount | Notes |
|---|---|---|
| Direct shares owned | 2,381 | Beneficial ownership as of proxy reference date |
| Options underlying | 4,733 | Included in beneficial ownership footnote |
| FY2025 stock awards vested (shares) | 476 | Shares delivered from RSU vesting; 173 shares withheld for taxes (~$11,500) |
| Value realized on FY2025 vesting | $31,718 | Based on closing price on vesting date plus accrued dividend equivalents |
Notes: Ownership as % of shares outstanding and any pledging/hedging positions were not disclosed in the cited documents.
Employment Terms
| Term | Key provisions |
|---|---|
| Employment status | At‑will; CFO effective Nov 1, 2024 |
| Perquisites | Annual perquisite reimbursement up to $15,000; up to $5,000/year financial counseling; auto allowance $1,100/month; company‑paid $5 million term life insurance; spouse/partner travel on up to two business trips per fiscal year |
| Non‑compete / non‑solicit | Restrictive covenants during employment and generally for two years post-termination; company may make certain post-termination payments and continue benefits during enforced non‑compete period |
| Severance (without cause or for material breach) | Accrued benefits; two years of base salary (=$1,800,000 at current rate); one‑time bonus payment equal to 50% of the average EAIP bonus for prior two years ($169,986 shown); two years of benefit continuation and pension replacement payments; financial counseling reimbursement; other perqs per agreement |
| Change‑of‑Control (CoC) | Double‑trigger acceleration for stock options and RSUs; annual PSUs granted before Nov 8, 2024 had single‑trigger; annual PSUs granted after Nov 8, 2024 require double‑trigger . As of June 30, 2025: CoC value from options/RSUs (double‑trigger) $1,637,353; single‑trigger PSUs $434,331 |
| Deferred compensation | May elect to defer all or part of annual bonus and base salary per Section 409A; amounts become general obligations of the company |
| PRGP IP vesting treatment | Unvested PRGP IP RSUs generally cliff‑vest on program schedule; forfeiture on voluntary terminations (if not retirement‑eligible); pro‑rata vest on involuntary termination without cause; include dividend equivalents |
Additional Disclosures and Activity
- CFO certifications: Signed Section 302 certifications on the Q1 FY2026 10‑Q (Oct 30, 2025) .
- Securities filings: Signed the November 4, 2025 S‑3ASR and November 6, 2025 8‑K exhibits related to an underwriting agreement for selling stockholders .
Investment Implications
- Alignment and upside sensitivity: FY2026 LTI mix shift to 60% stock options and removal of PSUs increases direct sensitivity of pay to share price appreciation (no intrinsic value without price gains), strengthening alignment with stockholders but reducing explicit linkage to multi‑metric performance previously embedded in PSUs .
- Pay‑for‑performance calibration: FY2025 EAIP paid at 53% of target for the CFO ($443,000 on $836,562 target) despite below‑threshold EPS and OI margin, driven by Net Sales/ROIC and business unit metrics, indicating some resilience of short‑term pay outcomes even in a profit‑recovery year .
- Retention dynamics: Added PRGP IP RSU ($794,200) with program‑level cliff vesting into fiscal 2028 enhances retention and could defer potential selling pressure until vesting; treatment provides pro‑rata vesting on involuntary terminations, supporting continuity during transformation .
- Ownership signal: Direct ownership remains modest (2,381 shares and 4,733 options) relative to role, suggesting greater alignment comes from unvested equity and options rather than existing stock holdings .
- Downside and CoC protections: Severance of 2× salary plus partial bonus and double‑trigger equity treatment balance retention with governance; legacy single‑trigger PSU provisions (pre‑Nov 8, 2024) represent a diminishing risk as newer awards adopt double‑trigger terms .