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A Pay Cut for Leonard Lauder

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By: TOM BRANNA

Editor

Estee Lauder chairman Leonard Lauder saw his bonus and salary drop after the beauty products maker reported net earnings for fiscal 2001 were $307.4 million, down from $314.1 million the previous year. As a result, the 68-year old Mr. Lauder’s salary was reduced 6% and his bonus was cut 66%. Mr. Lauder, 68, saw his bonus fall from $4.9 million in 2000 to about $1.7 million and his annual salary dropped to $1.8 million from $1.92 million, according to a proxy statement filed with the Securities and Exchange Commission. Estee Lauder last week lowered its sales and earnings forecasts for the fiscal first quarter and all of fiscal 2002, saying the Sept. 11 terrorist attacks on the U.S. added to a weakening retail environment.

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