Fabrizio Freda to Retire: A New Era for Estée Lauder

Fabrizio Freda Announces Retirement

Estée Lauder's chief executive Fabrizio Freda will retire after nearly 15 years leading the US-based beauty company. The group, whose brands include Clinique and MAC cosmetics, said on Monday it was well advanced in its succession planning for the role and that the board had already considered many highly qualified internal and external candidates.

Transition Plan and Company Challenges

Freda, who will step down at the end of June next year, will continue to oversee the company’s strategic, financial, and investment functions until a successor is appointed. This includes implementing a turnaround plan as Estée Lauder cuts back its workforce and works to shore up its margins.

• Shares have fallen about a third since the start of the year.
• The company faces a slow recovery in Asia.

“We look forward to celebrating Fabrizio’s many amazing accomplishments as his formal retirement date nears. Until then, the board, Fabrizio, and the entire leadership team are laser-focused on addressing the current challenges faced by the company,” said executive chair William P. Lauder.

Leadership Changes at Estée Lauder

This transition comes shortly after the company announced in July that its longtime chief financial officer would be replaced by Akhil Shrivastava, an internal candidate, later this year. Freda, 66, joined Estée Lauder in 2008 as president and chief operating officer and was appointed chief executive a year later.