Richemont awarded chief financial officer Burkhart Grund 12.9 million Swiss francs ($14.3 million) in total compensation last year, making him the highest-paid employee at the luxury-goods conglomerate.
Grund’s total payout included special awards that the company’s compensation committee said reflected exceptional performance, the company disclosed in its annual report Friday.
The CFO’s cash, stock and other awards compare to chief executive officer Jerome Lambert’s total compensation of almost 8 million francs.
The company said Grund, who joined Richemont in 2000 and became CFO and a board member in 2017, was awarded an additional payment of €2.3 million ($2.5 million) in the current year along with additional performance stock units as well as the right to more incentives next year.
“This discretionary award recognises exceptional performance over a number of years which the Committee considered had not been properly reflected in previous remuneration awards,” the head of Richemont’s compensation committee said in the report.
Richemont had record sales and operating profit last year and struck a long-sought deal to sell a majority stake in its online luxury retail platform YNAP. The Cartier owner reported sales of about €20 billion and operating profit of about €5 billion in the 12 months through March. And, after years of trying, it reached an agreement to sell a majority stake in YNAP which saw it record a €3.4 billion writedown of its interest in the business.
A Richemont spokesperson didn’t immediately respond to requests for comment on the compensation awards.
Grund also earned more in compensation than the CEO in the prior year, with 8.5 million Swiss francs in awards compared to Lambert’s 7.4 million francs.
Chairman Johann Rupert, who controls the Swiss company through its B-class stock, was awarded slightly more than 3 million francs in fees, benefits and social security costs during the 2023 financial year, about the same as the year before.
The South African billionaire holds 10 percent of the company’s share capital and controls 51 percent of its voting rights.
By Andy Hoffman
Learn more:
Richemont Shoots Down Reports of LVMH Takeover Interest
Chairman Johann Rupert spoke after the Cartier-owner reported annual earnings above analyst estimates.
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