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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
SEPTEMBER 6, 2007
THE ESTEE LAUDER COMPANIES INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-14064 11-2408943
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
767 FIFTH AVENUE, NEW YORK, NEW YORK 10153
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
212-572-4200
NOT APPLICABLE
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS;
APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.
On September 6, 2007, the Company's Compensation Committee approved the
payment of cash bonuses for the fiscal year ended June 30, 2007 ("fiscal 2007"),
to the Company's named executive officers pursuant to the Company's Executive
Annual Incentive Plan in the following amounts:
Named Executive Officer* Fiscal 2007 Bonus Amount
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Leonard A. Lauder $1,800,000
William P. Lauder $2,187,300
Daniel J. Brestle $2,187,300
Patrick Bousquet-Chavanne $1,910,700
Philip Shearer $1,879,500
Richard W. Kunes $ 695,800
* Due to a change in the disclosure rules since the 2006 proxy statement,
Mr. Kunes, Executive Vice President and Chief Financial Officer, will
replace Mr. L. Lauder as a named executive officer in 2007.
While the Company overachieved the targets for net sales and earnings per
share in fiscal 2007 that were the basis for the bonus opportunities for Leonard
A. Lauder (Chairman), his bonus was capped at the aggregate target opportunity
of $1,800,000. Bonuses for William P. Lauder (President and Chief Executive
Officer), Daniel J. Brestle (Chief Operating Officer) and Richard W. Kunes
(Executive Vice President and Chief Financial Officer) reflected the
overachievement on the net sales and earnings per share opportunities, but were
offset by failure to achieve the target opportunity for working capital relating
to inventory, as measured by inventory days to sell. Mr. Kunes' bonus also
reflects achievement of opportunities relating to his departments and the
Company's strategic plan. The bonuses for Patrick Bousquet-Chavanne (Group
President) and Philip Shearer (Group President) reflected the overachievement of
the net sales and earnings per share targets by the Company in fiscal 2007 and
the over and underachievement of goals for opportunities relating to their
respective groups relating to net sales for the group, operating margin, working
capital relating to inventory and planning accuracy. Measurement of performance
was subject to certain automatic adjustments. For instance, achievement of net
sales targets did not include the excess benefits provided by foreign currency
exchange rates.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE ESTEE LAUDER COMPANIES INC.
Date: September 11, 2007
By: /s/ Amy DiGeso
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Amy DiGeso
Executive Vice President -
Global Human Resources
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