THE WHAT? Estée Lauder’s Board of Directors plans to retain CEO Fabrizio Freda, extending his 15-year tenure despite recent performance setbacks and internal family divisions. The decision follows discussions in late May and aims to stabilize the company while initiating the next phase of CEO succession planning.
THE DETAILS Fabrizio Freda, who has led Estée Lauder since 2009, will continue in his role beyond June, when certain financial grants vest. The board, including lead independent director Charlene Barshefsky and Executive Chairman William P. Lauder, fully supports Freda’s strategy to enhance growth, profitability, and market speed. Despite a 30% drop in Estée Lauder’s shares over the past year and a challenging performance in China, the board and family are divided on whether Freda’s successor should come from within or outside the company.
THE WHY? Retaining Freda provides stability as Estée Lauder navigates its current challenges and plans for the future. Under his leadership, the company has seen significant growth and strategic diversification. However, with ongoing market difficulties, particularly in China, and a split within the family and board regarding succession, Freda’s extended tenure will allow for a thorough and considered approach to finding the right successor to continue driving the company’s global strategy and performance improvements.
Clinical aesthetics products refer to a category of products used in the field of medical aesthetics or cosmetic dermatology. These products are typically designed and formulated to be used under the supervision of healthcare professionals, such as dermatologists, plastic surgeons, or trained aestheticians. They are distinct from over-the-counter cosmetics in that they often contain active ingredients or formulations that require expertise in their application or administration.
Examples of clinical aesthetics products include:
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Dermal Fillers: Injectable substances used to add volume, smooth wrinkles, and enhance facial contours. Examples include hyaluronic acid fillers like Juvederm and Restylane.
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Botulinum Toxin (Botox): Injectables that temporarily paralyze facial muscles to reduce the appearance of wrinkles caused by repetitive movements, such as frown lines and crow's feet.
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Chemical Peels: Solutions applied to the skin to exfoliate and improve its texture. They can treat acne, pigmentation issues, and signs of aging.
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Laser and Light Therapies: Devices that emit focused light or laser energy to treat various skin conditions, including acne, scars, and signs of aging.
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Prescription Skincare Products: Formulations containing active ingredients like retinoids (vitamin A derivatives), hydroquinone, or prescription-strength antioxidants to address specific skin concerns under medical supervision.
