Lauder Family Disproves Rumours

Chaileedo Press
May 11, 2023
2 min read

According to WWD, the board of directors and the Lauder family of The Estée Lauder Companies have expressed their strong support for group president and CEO Fabrizio Freda and the company's leadership team in an internal memo.

As previously reported, billionaire investor Nelson Peltz is exploring the possibility of a shakeup at The Estée Lauder Companies that could involve ousting the company's longtime CEO, Fabrizio Freda. Nelson Peltz is said to be pushing for changes to improve the company's performance, including the possibility of a turnaround and eventual sale of the company. The leadership of Estée Lauder has not yet publicly commented on these reports.

Before the COVID-19 pandemic hit in 2020, LVMH, the French luxury conglomerate led by Bernard Arnault, reportedly expressed its interest in acquiring Estée Lauder to the company's controlling Lauder family.

William Lauder said:” We are united in our appreciation for, and support of, our president and CEO, Fabrizio Freda, and the broader leadership team as they lead this company, and our powerful portfolio of brands, into the future,”

“Under Fabrizio’s leadership, the company is executing a successful long-term strategy to drive our business. Fabrizio and our management team, like the Lauder family, continue to be focused on the best interest of our employees, customers and stockholders, to deliver long-term value.” William Lauder added.

According to recent reports, the Lauder family holds approximately 84% of voting control and four out of the 17 board seats at The Estée Lauder Companies. While there have been reports about investor Nelson Peltz exploring a possible shakeup at the company, no SEC filings have been made to indicate that he has bought stock.

Source: WWD