Sunday, November 26, 2023
Estée Lauder is split by succession rift as heirs battle over the troubled beauty brand's future after its shares plunged 50% this year
The heirs to the Estée Lauder fortune are in a struggle over the future of the company as its shares have plummeted more than 50% this year. The Lauder family, which holds about 35% of the company's shares and 80% of the voting power, is divided on supporting CEO Fabrizio Freda's turnaround plan. Leonard Lauder, who recently left the board at the age of 90, is dissatisfied with Freda, while his son William, a former company leader, strongly supports the current CEO.
The company faces challenges such as dependence on China, slow adaptation to platforms like TikTok, and reliance on traditional department stores. Freda's strategy focuses on reducing unsold inventory, with key tests of his position expected in late March and late June.
For more information see Keith Griffith “Estée Lauder is split by succession rift as heirs battle over the troubled beauty brand’s future after it’s shares plunged 50% this year”, The Daily Mail, November 18, 2023.
Special thanks to Lewis Saret (Attorney, Washington, D.C.) for bringing this article to my attention.