The Estée Lauder Companies Inc. announced initiatives it is undertaking in response to COVID-19.
“As COVID-19 has expanded globally in recent weeks, we remain first and foremost focused on the health and well-being of our employees, beauty advisors and consumers,” said Fabrizio Freda, President CEO.
The Company, its brands and its foundations have made donations and commitments, including:
Globally, a $2 million grant was awarded to Doctors Without Borders/Médecins Sans Frontières (MSF).
In China, over $800,000 was awarded to relief efforts. Funds will support the Red Cross Society of China, Shanghai Charity Foundation and Give2Asia. Additionally, $1.4 million worth of in-kind donations were provided to the China Women’s Development Foundation.
The Estée Lauder brand is donating two million surgical masks for front-line workers in New York.
Clinique is donating 50,000 skin care products as a thank you to the doctors and nurses in New York City’s hospitals.
M∙A∙C Cosmetics’ VIVA GLAM Fund will be allocating $10 million to 250 local organisations all over the world that are providing essential needs and services to people at higher risk.
In addition, the Estée Lauder Companies is contributing to the broader COVID-19 relief efforts. It is producing hand sanitiser in its United States, United Kingdom and Belgium manufacturing facilities.
As the Company prioritises areas of growth and cash generation among its geographic regions, product categories, brands, and channels of distribution, it has taken the following actions:
Announced salary reductions effective May 1, 2020 through October 31, 2020 for:
Executive Chairman William P. Lauder and President & Chief Executive Officer Fabrizio Freda of 50%.
Executive Leadership Team of 30%.
Other management of 10%-20%.
Announced that its Board of Directors will forgo their cash retainers through November 2020.
Announced salary reductions for Leonard A. Lauder, Chairman Emeritus, and Ronald S. Lauder, Chairman Clinique Laboratories, LLC, of nearly 100% effective May 1, 2020 through October 31, 2020.
Expanded cost control measures to include, among other efforts, optimising advertising and promotion spending, delaying certain capital investments, restricting business travel, and ceasing non-essential hires and certain professional services.
Issued $700 million aggregate principal amount of 2.6% Senior Unsecured Notes due 2030.
Borrowed the full amount under its $1.5 billion revolving credit facility.
Temporarily suspended share repurchases of its Class A Common Stock.
Suspending the next quarterly cash dividend on its Class A and Class B Common Stock, which would have been paid in June 2020.