After leading Estée Lauder for 16 years, CEO Fabrizio Freda will step down in 2024, as the company navigates leadership changes and recovery strategies
Estée Lauder Companies’ long-serving CEO, Fabrizio Freda, has announced his retirement, set for the end of 2024. Freda, who has led the global beauty giant since 2009, will continue to steer the company until a new CEO is appointed, with the board’s succession planning already well underway. This transition marks a significant change for Estée Lauder, whose portfolio includes high-profile brands such as La Mer, Mac, Clinique, and Tom Ford.
Freda’s tenure is notable for significant achievements, including the expansion of the company’s global reach and the sharp increase in its share price—from $16.75 in 2009 to over $370 in early 2022. He also spearheaded several high-profile acquisitions, including Deciem and Tom Ford, and capitalized on the burgeoning Chinese beauty market. However, the company has faced challenges in recent years, particularly in its Asia travel retail market and domestic U.S. performance, leading to a slower-than-expected post-pandemic recovery.
As the company looks ahead, the search for Freda’s successor will likely focus on internal candidates, with names like Jane Lauder, EVP of Enterprise Marketing and Chief Data Officer, and Stéphane de La Faverie, Group President, frequently mentioned. Both have been instrumental in leading the company’s ongoing Profit Recovery and Growth Plan (PRGP), aimed at addressing profit and growth challenges in a shifting global market.
In tandem with Freda’s retirement, Estée Lauder’s executive vice president and CFO, Tracey T. Travis, is also set to retire in 2025, adding to the leadership changes on the horizon. Travis will be succeeded by Akhil Shrivastava, starting in November 2024, with Travis staying on to ensure a smooth transition.
As the company prepares for new leadership, Estée Lauder faces mixed financial prospects. Despite the company’s recent report predicting an earnings growth range between 7 to 15 percent, the figures fell short of Wall Street’s expectations, reflecting the broader challenges the company faces in global prestige beauty markets. Analysts emphasize the need for a leader who can drive digital innovation, direct-to-consumer engagement, and agility in operations to strengthen the company’s market position moving forward.
Freda’s departure signals the end of an era for Estée Lauder, but his involvement in selecting his successor reflects his ongoing commitment to the brand’s future. With a strong foundation in place, the company looks to its next chapter of leadership to navigate both its opportunities and challenges.