How much does the CEO of Kering earn?

That CEOs of large luxury corporations receive a staggering six-figure salary is not surprising in itself. What is interesting, however, is how such astronomical figures are arrived at. In 2022, François-Henri Pinault's salary consisted of a fixed payment of €1.2 million, plus €1.8 million dependent on performance, and a one-off transfer of €5.8 million. It is up to shareholders to approve the remuneration package, which, as it depends in part on Kering's performance, can vary widely. Last year's compensation was approved by the board with a majority of 77.4%, a relatively low figure that suggests some dissatisfaction with the company's performance. Will Pinault's coffers be replenished this year after the Balenciaga advertising scandal and a 2% drop in group sales according to last quarter's estimates? Perhaps not as much as our fashion magnate would hope, who, as reported on the front pages of the French press, is currently embroiled in a dispute with the tax authorities.

Part of Kering chief executive François-Henri Pinault's salary is being donated to support the French group's efforts to protect the reputation of its brands. At the group's annual general meeting in Paris on Thursday, Kering's Véronique Weill announced the new criteria that will guide the variable remuneration of the group's top two executives, Pinault and CEO Jean-François Palus, in 2023: the reduction of the group's carbon footprint and the introduction of "a "system to protect the intangible assets and reputation of the Maisons". The latter should include the creation of an internal mechanism to monitor marketing initiatives and the promotion of a culture that encourages employees to use their judgment and discuss decisions collectively. One of the many tasks that fall under the heading of ' organization and talent management, which together account for 10% of variable remuneration.

Earlier this year, Palus said Kering had hired a 'best-in-class' agency to oversee Balenciaga's marketing content and was considering creating a new position for 'brand safety'. On Thursday, Pinault took full responsibility for the mistake, but stressed that Kering's brands are bigger than the people who run them: «The energy and determination that drives them far exceeds the contribution that any one person, however talented, can make to them. Our task is to increase the attractiveness of our Houses, not only for the next six months of the coming year but above all for the long term».