Kering to offer Luca de Meo 20 million euro welcome bonus

Struggling luxury group Kering will offer a "welcome bonus" of 20 million euros to its new managing director, Luca de Meo, at the company's general meeting in September, which is to approve his appointment.

Kering officially announced in mid-June the arrival of de Meo, aged 58, to the newly created position of managing director. The current CEO, François-Henri Pinault, 63, will retain the chairmanship of the group. De Meo left his role as head of car manufacturer Renault, which he helped to turn around.

On September 9, Kering shareholders will also be asked to vote on extending the age limit of the chairman from 65 to 80 and the managing director from 65 to 70.

"By accepting the position of managing director of Kering, de Meo forfeited the benefit of long-term variable remuneration elements that had been allocated to him in respect of his previous position as managing director of Renault," the notice convening Kering's general meeting, published on Wednesday, stated.

Estimating these lost remuneration elements at 20 million dollars, "the board of directors has decided to award him a welcome bonus of an equivalent amount." This bonus will be paid 75 percent in cash and 25 percent in Kering shares.

Welcome bonuses, also known as "golden hellos", are quite rare in France but more common in Anglo-Saxon countries.

The proposed annual fixed remuneration for Kering's managing director is 2.2 million euros gross. This is in addition to variable remuneration, which in 2026, if targets are met, will represent "220 percent of the annual fixed remuneration, or €4.84 million gross, and capped at 300 percent in the event of overperformance, or €6.6 million gross", according to the document.

Kering announced on Thursday a 46 percent drop in its net profit in the first half, to 474 million euros, and a 16 percent plunge in its revenue, to 7.6 billion euros.

At the general meeting, shareholders will be asked to vote on the managing director's remuneration for 2025 and his appointment. The remuneration for 2026 will be submitted for a vote at the general meeting "called to approve the accounts for the year ending December 31, 2025", according to the notice.

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