Coty Inc., a global beauty company that offers brands such as Adidas, Calvin Klein and Playboy, is paying its would-be CEO Elio Leoni Sceti $1.8 million or Rs 13 crore (at 64 rupees per dollar) for not joining the company.
Mr Sceti, currently CEO of frozen-food company Iglo Group, will get $1.75 million in severance from Coty Inc. He is likely to get an additional $50,000 for preferred stocks he was allotted in Coty Inc.
"Bart Becht will remain as interim chief executive officer of Coty. Mr Becht will also continue in his role as chairman of Coty. In connection with this change, Elio Leoni Sceti, who was planned to assume the role of CEO in July, has reconsidered and decided not to join Coty," the company said in a statement to the New York Stock Exchange.
Coty Inc., which reported net revenues of $4.6 billion for the fiscal year ended June 30, 2014, is on track to announce a $12 billion deal to acquire Procter & Gamble's beauty business, which would make it the world leader in perfume and hair care businesses.
According to media reports, the company wanted an insider to oversee such a large deal, resulting in disassociation with Mr Sceti, one week before he was supposed to take over the reign of the company.
"The Coty board of directors determined that leadership continuity is critical in ensuring the continued success of Coty's strategy implementation. We certainly understand Elio's decision not to join Coty as planned, thank him for his professionalism throughout this process and we wish him all the best in his future endeavors," Peter Harf, director and chairman of the Remuneration and Nomination Committee of Coty said.
Coty Inc., a global beauty company that offers brands such as Adidas, Calvin Klein and Playboy, is paying its would-be CEO Elio Leoni Sceti $1.8 million or Rs 13 crore (at 64 rupees per dollar) for not joining the company.
Mr Sceti, currently CEO of frozen-food company Iglo Group, will get $1.75 million in severance from Coty Inc. He is likely to get an additional $50,000 for preferred stocks he was allotted in Coty Inc.
"Bart Becht will remain as interim chief executive officer of Coty. Mr Becht will also continue in his role as chairman of Coty. In connection with this change, Elio Leoni Sceti, who was planned to assume the role of CEO in July, has reconsidered and decided not to join Coty," the company said in a statement to the New York Stock Exchange.
Coty Inc., which reported net revenues of $4.6 billion for the fiscal year ended June 30, 2014, is on track to announce a $12 billion deal to acquire Procter & Gamble's beauty business, which would make it the world leader in perfume and hair care businesses.
According to media reports, the company wanted an insider to oversee such a large deal, resulting in disassociation with Mr Sceti, one week before he was supposed to take over the reign of the company.
"The Coty board of directors determined that leadership continuity is critical in ensuring the continued success of Coty's strategy implementation. We certainly understand Elio's decision not to join Coty as planned, thank him for his professionalism throughout this process and we wish him all the best in his future endeavors," Peter Harf, director and chairman of the Remuneration and Nomination Committee of Coty said.
Coty Inc., a global beauty company that offers brands such as Adidas, Calvin Klein and Playboy, is paying its would-be CEO Elio Leoni Sceti $1.8 million or Rs 13 crore (at 64 rupees per dollar) for not joining the company.
Mr Sceti, currently CEO of frozen-food company Iglo Group, will get $1.75 million in severance from Coty Inc. He is likely to get an additional $50,000 for preferred stocks he was allotted in Coty Inc.
"Bart Becht will remain as interim chief executive officer of Coty. Mr Becht will also continue in his role as chairman of Coty. In connection with this change, Elio Leoni Sceti, who was planned to assume the role of CEO in July, has reconsidered and decided not to join Coty," the company said in a statement to the New York Stock Exchange.
Coty Inc., which reported net revenues of $4.6 billion for the fiscal year ended June 30, 2014, is on track to announce a $12 billion deal to acquire Procter & Gamble's beauty business, which would make it the world leader in perfume and hair care businesses.
According to media reports, the company wanted an insider to oversee such a large deal, resulting in disassociation with Mr Sceti, one week before he was supposed to take over the reign of the company.
"The Coty board of directors determined that leadership continuity is critical in ensuring the continued success of Coty's strategy implementation. We certainly understand Elio's decision not to join Coty as planned, thank him for his professionalism throughout this process and we wish him all the best in his future endeavors," Peter Harf, director and chairman of the Remuneration and Nomination Committee of Coty said.
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