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Estée Lauder Will Pay Aerin Lauder at Least $700,000 Annually

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Aerin Lauder might be leaving her job as senior vice president and creative director at Estée Lauder to start her own lifestyle brand, but she won't be saying goodbye to her grandparent's company entirely. While launching Aerin, which aims to be a Tory Burch-esque business specializing in casual luxury, Lauder will still get paid at least $700,000 a year for her services as global ambassador and creative consultant.

That $700,000 is a retainer fee increasing 4% each fiscal year through June 2016. As ambassador, Lauder will put in at least 35 days of personal appearances for Estée Lauder. Once she hits 35, she'll start getting paid another $20,000 per appearance—a number that jumps $1000 every year of the contract. What Estée Lauder gets out of this, other than the knowledge that the brand's scion won't have to eat ramen noodles while getting her start-up off the ground: Exclusive licensing rights to Aerin products, including cosmetics, fragrances, and other beauty items.
· Aerin Lauder to Start Up Her Own Lifestyle Brand à la Tory Burch [Racked NY]
· Despite Aerin Lifestyle Brand Launch, Estee Lauder Will Still Pay Aerin Lauder at Least $700,000 Yearly [Fashionologie]