Estee Lauder Companies Inc

NYSE:ELUnited States

Nov 1, 2024

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• DJ Est e Lauder to Replace Lead Independent Board Director Amid Shakeup, from 5:59PM ET on Friday Nov 01, 2024 by Dow Jones

  5:59PM ET on Friday Nov 01, 2024 by Dow Jones
  Companies Mentioned: EL
  By Sabela Ojea Estée Lauder is replacing its lead independent director after the struggling company named a longtime insider its new chief executive and said that members of the Lauder family will no longer serve in executive positions. The cosmetics company, whose portfolio of brands includes Clinique, Jo Malone and The Ordinary, on Friday said that Charlene Barshefsky will step down as presiding director of the board. Estée Lauder in September said Barshefsky had been re-appointed by the board to remain in her position for another year following the 2024 annual shareholder meeting. Richard Zannino will replace her following Estée Lauder's annual meeting on Nov. 8. Zannino, who joined the Estée Lauder board in 2010, was part of its audit committee. The company's latest corporate governance change comes after it said longtime insider Stéphane de la Faverie will replace retiring CEO Fabrizio Freda after a review of external and internal candidates. De la Faverie, Estée Lauder's current executive group president, will succeed Freda on Jan. 1, with a base salary of $1.5 million and a potential bonus of $3 million. Freda will keep his base salary of $2.1 million while serving as a special adviser until he retires as an employee from the company on June 30, 2026. This week the company also said Jane Lauder, who was passed over for the CEO job, would be leaving her executive position and that her cousin William Lauder, the longtime executive chairman, would shift to nonexecutive chairman. The board and members of the Lauder family had been split on whether an insider should run the business or if an outsider was needed, and there was also disagreement about how quickly to name a successor, The Wall Street Journal reported. Jane Lauder and William Lauder won't serve as employees of the company their grandmother founded by Dec. 31 and March 31, respectively. That means no Lauder family member will have a senior executive role at the company, but will remain on the board. "The company believes that its board leadership structure appropriately balances responsibilities among the company's leadership, supporting accountability, and engagement with stockholders," Estée Lauder said in a Securities and Exchange Commission filing on Friday. On Thursday, Estée Lauder reported a quarterly loss and said revenue fell 4% from a year ago. It also warned that sales would fall between 6% and 8% in the current quarter, worse than Wall Street analysts expected, and withdrew guidance for the rest of the year. The troubles are tied to big bets the company placed on the China beauty market and shoppers buying its skin creams and cosmetics at airports in Asia. Freda said that recent economic stimulus measures in China should help stabilize its business in the medium to long term, but declines will persist. The cosmetics market is under strain after years of rapid growth. L'Oréal posted sales below analysts' expectations earlier this month, and Coty, which makes Gucci and Marc Jacobs fragrances, warned of slowing sales in North America and Asia. Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix (END) Dow Jones Newswires November 01, 2024 17:59 ET (21:59 GMT)

• DJ Estee Lauder Is Maintained at Neutral by B of A Securities, from 2:39PM ET on Friday Nov 01, 2024 by Dow Jones

  2:39PM ET on Friday Nov 01, 2024 by Dow Jones
  Companies Mentioned: EL
  
  Ratings actions from Benzinga: https://www.benzinga.com/quote/EL/analyst-ratings
  
  (END) Dow Jones Newswires
  
  November 01, 2024 14:39 ET (18:39 GMT)
  

• DJ Estee Lauder Is Maintained at Hold by TD Cowen, from 2:26PM ET on Friday Nov 01, 2024 by Dow Jones

  2:26PM ET on Friday Nov 01, 2024 by Dow Jones
  Companies Mentioned: EL
  
  Ratings actions from Benzinga: https://www.benzinga.com/quote/EL/analyst-ratings
  
  (END) Dow Jones Newswires
  
  November 01, 2024 14:26 ET (18:26 GMT)
  

• DJ Estee Lauder Is Maintained at Outperform by RBC Capital, from 2:20PM ET on Friday Nov 01, 2024 by Dow Jones

  2:20PM ET on Friday Nov 01, 2024 by Dow Jones
  Companies Mentioned: EL
  
  Ratings actions from Benzinga: https://www.benzinga.com/quote/EL/analyst-ratings
  
  (END) Dow Jones Newswires
  
  November 01, 2024 14:20 ET (18:20 GMT)