Kering will propose a €20 million ($22.89 million) signing-on bonus for its new CEO Luca de Meo, adding to an overall annual salary of close to €9 million ($10.29 million) and up to 150 percent the same amount in shares, depending on performance.
In filings made ahead of its September 9 shareholder meeting to formalise de Meo’s appointment, Kering said it would propose that the Italian a fixed income of €2.2 million and a variable income of up to €6.6 million depending on performance.
Kering also plans to pay de Meo performance shares worth 150 percent of his annual remuneration, fixed and variable, it added in the regulatory filings published late on Wednesday, bringing the potential maximum annual pay to more than €20 million.
De Meo, who was hired from Renault, last had a total annual salary of €12.9 million, according to Renault’s 2024 annual report.
In return, Kering’s chairman and outgoing chief executive Francois-Henri Pinault will take a pay cut to €700,000, from around €4 million previously, the firm said.
Pinault, son of founder Francois and CEO of the Paris-listed company, has led Kering since 2005.
Kering’s shares, which had lost over 60 percent of their value in over two years, have gained 24 percent since de Meo’s announcement in June.
The €20 million sign-on bonus would compensate an estimated, similar amount of longer-term financial benefits lost by de Meo after he decided to leave Renault.
By Tassilo Hummel; Editor: Sudip Kar-Gupta
Learn more:
Why Kering Picked a Fashion Outsider to Be Its Next CEO
The Gucci and Saint Laurent owner is splitting its chairman and CEO roles, bringing in Luca de Meo, a turnaround expert who has revived multiple automotive brands, to support the Pinault family.
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