Kering CEO Sees Pay Leap As Long-Term Variable Scheme Reaches Maturity

PARIS — Kering chairman and chief executive officer François-Henri Pinault’s 2018 income got a boost from a long-term, variable scheme, a result of the company’s soaring performance in recent years, financial documents show. The executive plans to use the funds from the long-term, variable program — after paying social charges and income tax at a rate of around 50 percent — to reinvest in Kering shares, the company told WWD. Pinault’s total remuneration for the year came to 21.87 million euros, a jump from the previous year’s level of 2.75 million euros as in 2018, with the vast increase attributable to a variable compensation program set up by the company in 2013. The long-term incentive program, which is based on so-called Kering Monetary Units, or KMUs, links compensation to the financial performance of the group and its share price, as well as its share price performance compared to a group of seven peers in the luxury sphere. Adidas and Nike were removed from the group of stocks used for comparison after the group spun off its Puma stake to focus solely on high-end goods. Pinault’s fixed pay did not change compared to the previous year — the executive had a pay raise in

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