Philippe Benacin
INTERPARFUMSAbout Philippe Benacin
Philippe Benacin, age 66, is Vice Chairman of the Board and President of Interparfums, Inc. (IPAR) and Chief Executive Officer of Interparfums SA; he co‑founded the company with Jean Madar and graduated from ESSEC Business School (1983) . Company performance under his leadership shows meaningful expansion: revenues rose from $539.0M in 2020 to $1,452.3M in 2024, EBITDA increased from $79.2M to $303.2M, net income from $50M to $203M, and IPAR’s TSR (value of $100 invested at 12/31/2019) improved from 83.75 (2020) to 197.35 (2024) [GetFinancials: Revenues; EBITDA*]. He is one of IPAR’s two largest shareholders and owns 21.4% of the company, aligning incentives with shareholders .
Performance metrics
| Metric | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|---|
| Revenue ($USD) | $539,009,000 | $879,516,000 | $1,086,653,000 | $1,317,675,000 | $1,452,325,000 |
| EBITDA ($USD) | $79,150,000* | $160,748,000* | $216,842,000* | $268,713,000* | $303,154,000* |
| Net Income ($USD Millions) | $50 | $110 | $151 | $188 | $203 |
| TSR – $100 initial (12/31/2019 base) | 83.75 | 149.91 | 138.82 | 210.93 | 197.35 |
Note: EBITDA values marked with an asterisk were retrieved from S&P Global.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Interparfums, Inc. | Executive Vice President | Sep 1991 | Co-founder leadership; scale-up of European operations |
| Interparfums, Inc. | Senior Vice President | Apr 1993 | Expanded responsibilities pre-Presidency |
| Interparfums, Inc. | President | Jan 1994–present | Leads corporate strategy and execution; IPAR revenue and earnings growth [GetFinancials] |
| Interparfums SA | Chief Executive Officer | >5 years (continuing) | Oversees European segment with historically higher profitability and bonus-based pay architecture |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Vivendi | Supervisory Board Member; Chair, Corporate Governance, Nominations & Remuneration Committee | Since Jun 2014 | Governance and remuneration leadership; network relevance to consumer/media ecosystem |
Fixed Compensation
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $755,440 | $794,975 | $821,507 (includes $250,000 to PB Holding SAS) |
| Perquisites ($) | $11,372 (auto) | $11,678 (auto) | $11,690 (auto) |
| Pension/Deferred Earnings ($) | $16,006 | $17,600 | $19,072 |
- European compensation design: lower base, higher discretionary bonus due to profitability of Interparfums SA; bonus targets are discretionary, not formulaic .
- Consulting agreement: Philippe Benacin Holding SAS receives $250,000/year for services outside the U.S.; one‑year term with automatic annual renewals, 120 days’ termination notice, indemnification, and a one‑year non‑compete .
Performance Compensation
Annual Cash Bonus
| Year | Metric Linkage | Target | Actual/Payout | Notes |
|---|---|---|---|---|
| 2022 | Discretionary; SA performance | N/A | $210,600 | Recognition of SA results; no formal targets |
| 2023 | Discretionary; SA performance | N/A | $216,260 | Reflects sales/earnings performance |
| 2024 | Discretionary; record sales/earnings at SA | N/A | $411,312 | “Record setting performances in both sales and earnings” |
- Profit sharing plan: French law plan excludes Benacin (applies to other SA executives; max ~$31,688/year) .
Stock Options (IPAR)
| Grant | Vesting | Status at 12/31/2024 | Exercise Price | Expiration |
|---|---|---|---|---|
| 25,000 options (granted 2019) | 20% annually after year 1; 6-year term | 25,000 exercisable | $73.09 | 12/30/2025 |
- Option exercise in 2024: 25,000 options exercised; value realized $1,665,250 (difference between FMV and exercise price) .
- Vesting policy: all options vest 20% per year starting one year after grant; 6-year expiration .
Stock/Equity Awards (Interparfums SA)
| Plan | Grant Details | Performance Conditions | Vesting/Issuance | Benacin Position |
|---|---|---|---|---|
| 2022 Free Share Plan (IPSA) | 88,400 free shares to employees/officers | 50% on 2024 sales; 50% on 2024 operating income | Issuance June 2025; performance expected at 100% by management updates | 3,993 shares unvested; market value ~$176,338 at 12/31/2024 |
- No IPSA awards in 2023–2024; shares for 2022 plan purchased in the market and allocated .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 6,871,064 shares (incl. options within 60 days); 21.4% of outstanding |
| Ownership structure | 6,846,064 held via Philippe Benacin Holding SAS; 25,000 options included |
| Options (IPAR) | 25,000 exercisable at $73.09; expiration 12/30/2025 |
| Shares pledged | No pledging disclosed in the proxy |
| Ownership guidelines | No executive stock ownership requirements at IPAR |
| Anti-hedging policy | Officers/directors (and related persons) prohibited from hedging/monetization transactions in IPAR securities |
| Trading windows | Pre‑clearance with CFO; blackout from 10 business days before earnings until two full business days after filing |
Employment Terms
| Agreement | Term | Renewal | Termination Notice | Non‑Compete | Indemnification |
|---|---|---|---|---|---|
| Employment Agreement (1991) | Initial through Sep 1992 | Automatic annual renewals | 120 days | 1 year post‑termination | Included |
| Consulting – PB Holding SAS (2014) | 1 year | Automatic annual renewals | 120 days or if Benacin ceases to be President | 1 year post‑termination | Included |
- Severance/Change‑of‑control terms: not disclosed for Benacin in the proxy; Garcia‑Pelayo retirement severance noted separately ($2,243,490) .
- Non‑solicit/Garden leave: not disclosed.
- Clawback: IPAR adopted an erroneously awarded compensation recovery policy aligned with SEC rules; applies to incentive‑based comp received on/after Oct 2, 2023 and the prior three fiscal years upon a restatement .
Board Governance
- Roles: Vice Chairman of IPAR Board; President of Interparfums, Inc.; CEO of Interparfums SA .
- Committee memberships: Compensation, Audit, and Nominating committees are composed entirely of independent directors; Benacin is not listed as a member of these committees .
- Board attendance: Board/committee meetings totaled 23 in 2024; all directors attended at least 75% .
- Independence: Benacin is an executive officer and thus not independent; independent directors named separately .
- Dual‑role implications: IPAR combines Chairman & CEO roles in Jean Madar and has Benacin as Vice Chairman; Board has no Lead Independent Director. Governance relies on co‑founders as largest shareholders with aligned incentives; potential entrenchment/independence concerns mitigated by independent committees .
Related Party Transactions and Structures
- Consulting fees: $250,000 annually to Philippe Benacin Holding SAS for services outside the U.S., approved by Compensation and Audit Committees .
- Intercompany loans: Interparfums SA loaned $24M to IPAR in Mar 2024 for dividend funding (repaid with ~4.95% interest); Interparfums Luxury Brands loaned $20M (Sep 2023) and $12M (Dec 2023), repaid in 2024 with 5.3% interest .
Compensation Structure Analysis
- Mix and trends: Benacin’s pay skews toward discretionary annual bonus tied to SA performance, with modest base salary increases; limited use of IPAR equity awards since 2020s, aside from legacy options and IPSA free shares in 2022 .
- Benchmarking: Compensation Committee broadly references market knowledge rather than formal peer benchmarking; independent committee oversees decisions .
- Clawback and anti‑hedging: Policies reduce risk of mis‑aligned pay and speculative hedging .
- Director equity: Non‑employee directors receive annual options (1,500 shares) with long vesting; not applicable to Benacin as executive .
Investment Implications
- Alignment: Benacin’s 21.4% stake (via holding SAS) strongly aligns interests; absence of pledging disclosure reduces collateral risk; anti‑hedging policy reinforces alignment .
- Selling pressure: 25,000 IPAR options at $73.09 expire in Dec 2025; he exercised 25,000 options in 2024 (value realized $1.67M), indicating potential periodic selling or share settlement activity; monitor Form 4s for any increased cadence .
- Retention risk: Automatic renewals, indemnification, and one‑year non‑compete provisions suggest continuity; lack of disclosed severance/CoC multiples limits clarity on exit economics but reduces parachute inflation risk optics .
- Performance linkage: Bonuses are discretionary and tied to SA results without formulaic targets; IPSA 2022 free-share plan is genuinely performance‑based (2024 sales and operating income), offering longer‑term alignment on the European platform .
- Governance: Concentrated ownership and combined top roles support decisive execution but limit formal independence (no Lead Independent Director); independent committees and robust clawback/anti‑hedging policies are mitigating features .
- Track record: Sustained revenue, EBITDA, net income growth and strong TSR across 2020–2024 underpin confidence; continued dividend increases signal capital discipline .