Yesterday (August 24), Leonard Lauder at Estee Lauder announced that he will not run for re-election to the Board of Directors at the annual meeting in November.
According to information on Estee Lauder’s website, Leonard Lauder formally joined the Estee Lauder Companies in 1958 and served as president from 1972 to 1995 and CEO from 1982 to 1999. He became Chairman of the Board of Directors in 1995, a position he held until June 2009, when he was named Chairman Emeritus. Leonard Lauder advises and consults on a variety of business topics, including branding, marketing and understanding the global luxury consumer.
According to WWD, the Lauder family owns a total of 35 percent of the company’s common stock and approximately 84 percent of the outstanding voting rights, and Leonard Lauder remains a significant shareholder in the company with the right to appoint two directors.
The two directors Leonard Lauder reportedly named are his two sons, William P. Lauder, who serves as is executive chairman of the board, and his youngest son, Gary M. Lauder, who is running for election to the board in November.
“My father envisioned and helped drive the growth and expansion of our company from an iconic single brand to the global, brand-building powerhouse it is today,” William Lauder said in a statement. “It has been an incredible honor and privilege to have worked and learned from my father over the years. I look forward to continuing to learn from him, and know his passion for this industry, this company, our employees and our consumers is as strong as ever.”
Leonard Lauder reiterated his strong support for the company’s current leadership in his internal memo and further mentioning, “The nomination of Gary to the board further reflects my family’s long-term stewardship, and our support of the visions, values and people who will drive the company’s success.”
Last week, the company reported its fiscal year 2023 results, with full-year net sales down 10% and diluted earnings per share down 57%. Net income was $1.01 billion, compared to $2.39 billion in the prior year.
