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.