Estée Lauder Cousins Leave Daily Roles as Shares Tumble
(Bloomberg) -- The Lauders are stepping down from their current roles at Estée Lauder Cos., leaving the company without a family member in day-to-day management for the first time since its founding 75 years ago as it faces its worst outlook in years.
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On Thursday, shares plummeted the most on record after the company pulled its guidance for the rest of the fiscal year because of what it said was increased uncertainty around its business in China and the plans of its incoming chief executive officer, who takes the helm in January. During the past two years, Estée Lauder has repeatedly cut its guidance, giving Wall Street the impression executives don’t have a grasp on their business.
Earlier in the week, two of the Lauder cousins said they were stepping down from their roles at the company in the coming months to focus on their work as board members.
Jane Lauder gave up her post as chief data officer to focus on her board role. “I intend to work solely as a board member and committed shareholder,” Jane Lauder wrote in an internal company memo sent this week and viewed by Bloomberg News. “This change will allow me to have the greatest impact and influence on Estée Lauder Companies’ future.”
William Lauder stepped down from his role as executive chairman and will focus on his work as a board member. Longtime CEO Fabrizio Freda is leaving in January. Both men have held their roles since 2009.
“Our family’s long-standing day-to-day management of the company is evolving and reflects my desire to focus more on the overall strategic direction of the company,” William said in a press release on Wednesday announcing the appointment of longtime Estée Lauder executive Stéphane de La Faverie as CEO.
Jane and William are two of four Lauders on the 15-member board.
Shares have fallen 66% in the past two years, closing at $68.21 on Thursday, down from about $200 in 2022.
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