How the CPO of e.l.f beauty is communicating with employees through tariff uncertainty

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Cosmetics Powerhouse Elf Beauty Inc. offers. Unusual compensation structure for employees.

Unlike other organizations, the company offers all shares about 600 workers at the time of rental, as well as new grants every year. This means that regular employees outside the C-SUITE, who may not have the opportunity, are able to benefit from the type of stock options most often for senior management.

But the latest Trump tariff ads turned into this compensation strategy to the human resources issue. About 80 % of the company’s products, including lipstick and institutions, are manufactured by the third parties in China, according to ELF, which has become a great concern when Trump announced a 145 % tax on goods coming from that country.

This means that although some employees in the United States may be concerned about how these definitions affect the general economy and the employment environment, ELF employees see their stock options weighing due to the indisputable uncertainty. The price of ELFs was $ 133.91 in January, but it decreased to about $ 62.17.

“Most people have tension at the present time, it is difficult not to do that,” says Scott Melston, the chief dwarf dwarf officer, who led the company’s human resources practices for more than a decade.

But given that most employees are part of a part, he says driving does not explode from the problem. Instead, the executive team tends to communicate. This includes reminding employees of their shares options, and encouraging people to overcome them in the long run, noting that the company’s compensation structure also allows workers to purchase additional shares at a lower price through the “update grant”.

“We have lived somewhat internally,” he says. “While this is the time when I think you may find companies fall into silence, we are completely going in the other direction.”

Melston says that the company’s strategy to communicate publicly with employees allow workers to focus on their long -term investments, instead of short -term losses.

“It was difficult for people, personally, to move in this,” he says. “but [the] The number one priority for me is to make sure people understand how we moved unconfirmed times, because regardless of the economic environment, our ability to take its share in the market must always be correct and we have shown it.

Pret Morsi
brit.morse@fortune.com

This story was originally shown on Fortune.com

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2025-04-30 12:26:00