Coty Paying $1.8M for CEO Who Didn't Take the Job
Cosmetics and fragrance maker Coty said its interim CEO will continue in that role, and Elio Leoni Sceti, who was slated to become its CEO in about a week, won't be joining the company.
The company says it will pay Leoni Sceti $1.8 million in severance and buy back preferred stock he had bought.
Chairman Bart Becht has been Coty's interim CEO since September. Coty said Tuesday that it decided it needs continuity in its leadership as it implements a new business strategy.
The company said in a statement that Leoni Sceti had "reconsidered and decided not to join Coty" in connection with Becht staying on as interim CEO.
Coty said the severance payment, which is equal to one year's salary, was part of the employment agreement Leoni Sceti signed with Coty in April. The company will also pay about $55,000 to buy back the preferred stock.