As a result of COVID-19, The Estée Lauder Companies Inc. has announced salary reductions as part of cost control measures.

Leonard A. Lauder, Chairman Emeritus and Ronald S. Lauder, Chairman Clinique Laboratories, LLC, will give up nearly 100 percent of their salaries. Both William P. Lauder, Executive Chairman, and Fabrizio Freda, President and Chief Executive Officer, will take 50 percent salary cuts. The company’s executive leadership team will experience 30 percent reductions in their salaries, and other management salaries will be cut 10 to 20 percent. The reductions will be effective May 1 through October 31, 2020. Additionally, the company’s Board of Directors will forgo their cash retainers through November 2020.

Following COVID-19 directives, most of the company’s retail stores in the Americas and Europe, the Middle East and Africa, have been closed since mid-March, and air travel continues to be largely restricted, primarily impacting its travel retail business. Decisions are being made regionally for point-of-sale and field employees in areas experiencing slow recovery, which will include unpaid temporary leaves of absence that allow employees to maintain healthcare benefits and access to COVID-19 support.

Additional cost control measures will include optimizing advertising and promotion spending, delaying capital investments, and ceasing non-essential hires and professional services. The company also announced it has borrowed the full amount under its $1.5 billion revolving credit facility.

“I am confident that the actions we are taking will enable us to effectively navigate through this challenging environment with agility and position us well for the recovery, much as we are starting to see in our Asia/Pacific region as stores reopen,” said Fabrizio.