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Lauder Announces New Organizational Structure and Leadership Team

William P. Lauder and Fabrizio Freda of The Estée Lauder Companies Inc., (ELC) announced the company's new organizational structure and senior leadership team. This marks the completion of the second phase of the company's succession plan that was announced approximately 18 months ago, and, according to a press release, will better position the company to implement and achieve its new corporate strategy and financial goals.

Freda, who will become the company's president and CEO on July 1, 2009, has established an executive leadership team (ELT) that includes all of the brand, region and function heads. Under his leadership, the ELT is responsible for implementing the company's long-term strategic priorities, achieving annual goals, and addressing critical global business issues and opportunities. Also newly formed, the program management team (PMT) is a subcommittee of the ELT, focused on implementing the company's top strategic priorities, building new capabilities and delivering cost savings.

"This talented team of professionals will leverage the creative and brand building strengths of the company while enhancing our ability to benefit from our scale and extensive global reach. Working together, they will ensure that The Estée Lauder Companies will become an even stronger leader in the world of global prestige beauty," said Freda.

There will be four categories of ELC brands that will now be organized according to channel and consumer segmentation. This will allow for better leverage of scale and strategic integration according to market segments and growth potential. The following brand leadership team will report directly to Freda:

  • John Demsey, who currently is the group president of the Estée Lauder, M-A-C, Tom Ford and Prescriptives brands, will now add the Specialty Group of Bobbi Brown, La Mer and Jo Malone to his portfolio. Reporting to Demsey and taking on a new role will be: Jane Hertzmark Hudis, who currently is president of BeautyBank, Origins and Ojon and will become global brand president, Estée Lauder brand; Maureen Case, who will continue as the global brand president specialty group and oversee the Bobbi Brown, La Mer and Jo Malone brands; and Caroline Geerlings, who will continue in her role as senior vice president/general manager Prescriptives.
  • Lynne Greene, currently the global president of Clinique, will now become the global brand president of the Clinique, Origins and Ojon brands. Jane Lauder, the senior vice president/general manager Origins, will now report to Greene.
  • Veronique Gabai-Pinsky, who currently oversees Aramis and designer fragrances, will become the global brand president Aramis designer fragrances, BeautyBank and IdeaBank, the company's entrepreneurial think tank.
  • Dominique Conseil, who is currently president of Aveda, will become the global brand president of Aveda, salon and pharmacy channels. Peter Lichtenthal will continue in his role as president, Bumble and bumble, along with the Darphin brand, and will report to Conseil.

As announced, the company will place a much greater emphasis on creating economies of scale by region, and also by developing new marketing capabilities on a regional basis. "Our regional focus will simultaneously allow us to improve our local marketing capabilities by being closer to our consumers and to reduce costs across the company," said Freda.

  • Thia Breen, currently global president of the Estée Lauder brand, will assume new responsibilities as the president, North America, a newly created position and ELC region.
  • Cedric Prouvé, group president, international will continue to have the following direct reports: Fabrice Weber, president Asia Pacific region; Ivan Fernandez, president Europe, Middle East and Africa; Olivier Bottrie, president travel retailing worldwide; Per Neuman, general manager Estée Lauder UK; and the newly created region of Latin America led by Daniel Rachmanis, who will become senior vice president Latin America and business development.

Breen and Prouvé will report directly to Freda.

The functions will now be more fully integrated with the brands and regions as part of the new leadership team. By focusing on productivity and financial discipline, they will be able to develop state-of-the-art capabilities and will be fully aligned with the brands and regions to maximize effectiveness.

  • Harvey Gedeon, executive vice president, research and development and product innovation; Gregory Polcer, executive vice president, global supply chain; and Dennis McEniry, president ELC online; will report to Freda.
  • Amy DiGeso, executive vice president–global human resources; and Richard Kunes, executive vice president and CFO, will have dual reporting to both Lauder and Freda.
  • Sara Moss, executive vice president and general counsel; Alexandra Trower, executive vice president-global communications; and Deborah Krulewitch, senior vice president corporate administration; will continue to report to Lauder.

Freda will join the company's board and will report to Lauder.

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