At a Glance
- Coty’s revenue climbed 10 percent in 2024, but net income plunged sharply year-over-year.
- Expiring equity awards drove a 95% decline in Sue Nabi’s total compensation package.
- Nabi retains 3.53% of Coty shares despite a steep drop in market valuation.
Sue Youcef Nabi, the Algerian-born French entrepreneur renowned for her influence in the global beauty and fragrance industry, experienced a dramatic reduction in her compensation from Coty, a global beauty industry leader, in fiscal year 2024.
After receiving a record $149.43 million pay package in 2023, awarded in part for her role in driving Coty’s strong performance, Nabi’s earnings fell sharply by $142.2 million to $7.3 million in 2024. The steep decline was primarily driven by the expiration of equity awards and the reversal of fair value adjustments that had significantly boosted her prior-year compensation.
Nabi continues to chart Coty’s growth strategies amid pay slash
Despite the substantial cut, Nabi remains a pivotal figure at Coty, continuing to guide the company as it pursues growth through innovation, brand consolidation, and operational transformation.
Nabi, who became CEO of Coty in July 2022, received a base salary of $3.53 million in 2024. However, she did not qualify for incentive stock options, unlike in 2023 when she was awarded options worth $145.89 million—a hefty compensation reflecting her pivotal role in steering Coty to significant financial milestones that year.
Since joining the Board in September 2020 as Coty’s Chief Executive Officer, Nabi has provided exemplary leadership, helping transform the company into a global powerhouse in fragrances, the second-largest player in hair color and styling, and the third-largest in color cosmetics.
Sue Nabi revives global beauty brands
Sue Nabi’s career in the fragrance and beauty industry is distinguished by a series of significant accomplishments. The Algerian-born French entrepreneur spent two decades at L’Oréal, where she championed diversity and inclusion while driving major business growth.
She began her career at L’Oréal in 1993 and rose swiftly through the ranks. In 2005, she was appointed Worldwide President of L’Oréal Paris, implementing successful strategies that accelerated the brand’s expansion.
Four years later, in 2009, she became Worldwide President of Lancôme, where she led the company’s revival through breakthrough products and innovative marketing, serving in this role until 2013.
In 2017, Nabi founded and led the ultra-luxury skincare line Orveda as its chief executive officer. Prior to joining Coty as CEO, she built a reputation as a visionary leader known for blending creativity, inclusivity, and commercial acumen to drive sustained success across global beauty brands.
Coty grows revenue, but profitability lags behind
Under Sue Nabi’s leadership, Coty has strengthened its position as a global powerhouse in the beauty and fragrance industry, delivering strong financial results while navigating profitability challenges.
In fiscal year 2024, the beauty giant reported a 10 percent increase in revenue, reaching $6.12 billion. The prestige segment remained Coty’s primary growth engine, accounting for 63 percent of total sales and expanding 14 percent on a like-for-like basis, driven by strong demand across EMEA, Latin America, and Asia-Pacific. The consumer beauty division also delivered gains, particularly in mass fragrances and skin and body care categories.
However, despite the double-digit revenue growth, profitability proved more elusive. Operating income edged up just 1 percent to $546.7 million, while net income fell sharply to $76.2 million, compared with $495 million the previous year. This significant decline was mainly attributed to unfavorable fair value adjustments and the reversal of equity swap benefits. These headwinds likely contributed to Sue Nabi’s earnings falling below the $7.3 million mark in 2024.
Coty exits SKKN, assets decline slightly
On March 21, Coty divested its 20 percent stake in SKKN by Kim, marking the end of its partnership which the beauty giant sealed with Kim Kardashian, first announced in 2020 and completed the transaction in 2021 for $200 million. The transaction involved selling Coty’s stake to SKIMS, which plans to consolidate its beauty and lifestyle businesses under a single brand.
Additionally, total assets decreased by 4.57 percent to $12.08 billion as of June 30, 2024, down from $12.66 billion a year earlier. By contrast, total equity rose slightly, increasing 0.36 percent to $4.012 billion from $3.997 billion in the prior period.
Sue Nabi’s stake sinks amid market slide
In addition to her executive and governance roles at Coty, Sue Nabi also holds a significant personal stake in the company. She owns 3.53 percent of Coty’s shares, amounting to 30,304,786 shares. The value of her holdings has declined markedly, falling from more than $360 million at the start of 2024 to $139.4 million, as Coty’s market capitalization dropped from over $10 billion to $4.1 billion.
Widely regarded as a visionary leader, Nabi has made a profound impact on the global beauty industry. Her commitment to innovation, diversity, and inclusion has propelled Coty to new heights, and she remains a driving force in the rapidly evolving beauty landscape.
Looking ahead to fiscal year 2025, Coty plans to sustain its growth through strong market positioning, innovative product development, and operational excellence, while maintaining a focus on sustainability and consumer-centric strategies. As part of its ongoing transformation, the company has also announced plans to eliminate 700 jobs globally.
