Estée Lauder Divided About Succession Planning

Estée Lauder’s founding family and board are divided about how to regain investors’ confidence after seeing its stock price plunge by 50% this year. Chairman Emeritus Leonard Lauder, who built his mother’s company into an empire, and some board members, are dissatisfied with CEO Fabrizio Freda, according to people familiar with the matter. Freda’s biggest supporter remains Executive Chairman William Lauder, the people said. Jane Lauder, family member and marketing executive at her grandmother’s company, and Executive Group President Stéphane de la Faverie, are on the shortlist of internal CEO contenders. Some board members are considering external candidates in addition to internal ones to succeed Freda, the people said.

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