Philippe Santi
INTERPARFUMSAbout Philippe Santi
Philippe Santi, age 63, is Executive Vice President of Interparfums SA and has served on the Inter Parfums, Inc. board since December 1999. He is a Certified Accountant and Statutory Auditor in France; he served as Interparfums SA CFO from February 1995 until November 2023, and previously was CFO of Stryker France and an Audit Manager at Ernst & Young . During his tenure, company fundamentals have strengthened: 2024 net sales rose 10% YoY to $1,452.3 million, operating income was $274.8 million, and net income was $203.4 million . Inter Parfums’ Pay vs. Performance disclosure shows a cumulative value of a $100 investment (company TSR) of $197.35 as of 2024 (base year 2020) .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Interparfums SA | Chief Financial Officer | Feb 1995 – Nov 2023 | Built and oversaw European finance infrastructure during significant brand/license expansion . |
| Interparfums SA | Executive Vice President | Not disclosed (current) | Senior leadership for European operations and corporate finance matters . |
| Stryker France | Chief Financial Officer | Prior to Feb 1995 | Finance leadership for medical device subsidiary . |
| Ernst & Young | Audit Manager | Prior to Feb 1995 | External audit and assurance experience . |
Board Governance (Director Service and Roles)
- Board service: Director since December 1999 .
- Committee roles: Audit, Compensation, and Nominating committees in 2024 comprised Heilbronn (Chair), Bensoussan, and Gabai-Pinsky; Santi is not listed on these committees .
- Board activity: The board held 23 meetings in 2024; all directors attended at least 75% of applicable meetings .
- Independence context and dual-role implications: The company states compliance with Nasdaq independence definitions and has independent audit committee members; the CEO also serves as Chair and the board has no Lead Independent Director, with risk oversight conducted via board and committee processes .
Company Performance Context (for pay-performance and execution analysis)
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net sales ($000s) | 1,086,653 | 1,317,675 | 1,452,325 |
| Income from operations ($000s) | 194,303 | 251,382 | 274,796 |
| Net income ($000s) | 151,037 | 187,776 | 203,433 |
| YoY net sales change | — | +21% | +10% |
| Company TSR ($100 initial) | 83.75 (2020) | 149.91 (2021) | 138.82 (2022) |
Fixed Compensation
Multi-year cash and other fixed elements for Santi (USD; euros converted per proxy methodology):
| Component | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base salary | $454,896 | $495,668 | $513,558 |
| French pension/deferred earnings | $16,006 | $17,600 | $18,920 |
| Perquisites/other (e.g., auto) | $0 | $0 | $11,690 |
| Total fixed-related (subtotal) | $470,902 | $513,268 | $544,168 |
Context:
- European base salaries are set lower as a share of total pay, with higher discretionary bonuses; Santi’s base moved in “lockstep” with Garcia-Pelayo (2024 base €474,462 vs. €458,000 in 2023) .
- No executive stock ownership guidelines are in place .
Performance Compensation
- Bonus policy and metrics: For European executives (including Santi), annual bonuses are discretionary without formulaic targets; amounts reflect performance and recommendations by Interparfums SA’s Remuneration Committee and the CEO of Interparfums SA .
- Profit sharing: French law profit-sharing plan for French employees (max approx. $31,688 per employee/year), allocated pro rata by salary; Santi received plan payouts as shown below .
| Incentive element | Metric/Weighting | Target | Actual | Payout | Vesting/Timing |
|---|---|---|---|---|---|
| Discretionary annual bonus | Discretionary (no preset weighting) | Not disclosed | 2022: $436,995 | $436,995 | Cash, annual |
| 2023: $457,714 | $457,714 | ||||
| 2024: $425,058 | $425,058 | ||||
| Interparfums SA profit-sharing (French law) | Statutory formula | N/A | 2022: $32,485 | $32,485 | Cash, annual |
| 2023: $37,603 | $37,603 | ||||
| 2024: $31,688 | $31,688 |
Notes:
- 2024 discretionary bonus equaled ~83% of base salary per Compensation Discussion .
- Shareholder say‑on‑pay in Sept 2024 “overwhelmingly approved” executive compensation policies .
Equity Ownership & Alignment
- Beneficial ownership of Inter Parfums, Inc. (IPAR): Santi reported “None” (0%) as of July 1, 2025 .
- Executive stock ownership guidelines: None for executives .
- Anti-hedging policy: Officers and directors are prohibited from hedging/monetization transactions in company securities .
- Clawback: Policy to recover erroneously awarded incentive compensation after an accounting restatement (3-year lookback) .
- Trading windows: Pre-clearance required; blackouts from 10 business days before earnings press release/filing through two full business days after filing; similar blackout for 8-Ks .
Equity and option positions (Inter Parfums, Inc.):
- Outstanding options at 12/31/2024: 2,000 exercisable at $73.09, expiring 12/30/2025; options vest 20% per year over 5 years; 6-year term .
- 2024 option exercises: 4,000 shares; value realized $267,171 .
| IPAR equity detail | As of | Amount/terms |
|---|---|---|
| Beneficial ownership | 7/1/2025 | None (0%) |
| Options outstanding | 12/31/2024 | 2,000 exercisable @ $73.09; expire 12/30/2025 |
| Option vesting convention | — | 20% annually starting 1 year post-grant; 6-year expiry |
| Options exercised (2024) | 2024 | 4,000; $267,171 value realized |
Interparfums SA equity (subsidiary traded on Euronext):
| Instrument | Status | Quantity/Value |
|---|---|---|
| Interparfums SA stock awards | Unvested (performance-contingent shares) | 7,986 units; $352,677 market value as of 12/31/2024 (40.80€ stock price; $1.04/€) |
Pension benefits:
| Plan | Years credited | Present value of accumulated benefit | Payments during last FY |
|---|---|---|---|
| Interparfums SA Pension Plan | N/A | $396,504 | $18,920 |
Employment Terms
- Employment agreements: U.S. executives have no employment agreements; European executive compensation is approved by Interparfums SA’s Corporate Governance, Nominations and Remuneration Committee; no specific employment contract terms for Santi are disclosed .
- Severance/change of control: Not disclosed for Santi; note a one-time severance of $2,243,490 was paid to Garcia‑Pelayo upon his retirement on 12/31/2024 (for context) .
- Non-compete, non-solicit, garden leave, post-termination consulting: Not disclosed.
- Clawback and insider-trading/trading-window policies: As above .
Multi‑Year Total Compensation (Summary Compensation Table data)
| Component (USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary | $454,896 | $495,668 | $513,558 |
| Bonus | $436,995 | $457,714 | $425,058 |
| Stock awards | $139,077 | $0 | $0 |
| Option awards | $0 | $0 | $0 |
| Non‑equity incentive (profit sharing) | $32,485 | $37,603 | $31,688 |
| Change in pension value | $16,006 | $17,600 | $18,920 |
| All other compensation | $0 | $0 | $11,690 |
| Total | $1,079,459 | $1,008,585 | $989,224 |
Compensation Structure Analysis (alignment and risk signals)
- Discretionary-heavy European bonus design: No explicit performance weights/targets; annual bonuses for Santi were substantial relative to salary (e.g., 83% of salary in 2024), tying pay to qualitative performance judgments and subsidiary results rather than preset metrics .
- No executive stock ownership guidelines: Reduces formal alignment requirements; reliance on founder/large holders for alignment; policy explicitly states no minimum ownership for executive officers .
- Limited IPAR equity exposure: 0% reported beneficial ownership as of July 1, 2025 and only 2,000 outstanding IPAR options at 12/31/2024; however, Santi holds unvested equity in Interparfums SA (subsidiary), linking him to European performance .
- Governance controls: Anti-hedging and clawback policies in place; trading windows enforced, mitigating hedging and timing abuses .
- Say‑on‑pay support: “Overwhelmingly approved” in Sept 2024, indicating shareholder acceptance of the current framework .
Investment Implications
- Alignment: Lack of IPAR stock ownership guidelines and 0% reported IPAR beneficial ownership for Santi suggest weaker direct alignment with U.S.-listed equity; however, unvested Interparfums SA equity ties him to European segment performance—important given Europe contributed the majority of 2024 sales and operating income .
- Retention and selling pressure: Residual IPAR options (2,000 @ $73.09 expiring 12/30/2025) are small; an exercise/expiration decision near 2025 year-end is unlikely to create material selling pressure; 2024 option exercise and value realized were modest in scale for Santi .
- Pay-for-performance transparency: The discretionary bonus model (no preset weights/targets) reduces visibility for investors; continued strong operating execution (2024 net sales +10% YoY; operating income up vs. 2023) helps justify payouts but limits ex-ante predictability .
- Governance: No Lead Independent Director and CEO/Chair duality persist at the company level; committees remain independent, and anti-hedge/clawback controls are in place—neutral to slightly negative from a governance-scoring lens .