Big Structural Changes at Estée Lauder

NEW YORK—An unexpected resignation by Philip Shearer, group president, Estée Lauder Co. (ELC), follows on the coattails of the November announcement that Fabrizio Freda, president of Procter & Gamble, snacks division, would join the cosmetic company in March 2008 as president and chief operating officer. Chief executive William Lauder noted that Freda would succeed him as chief executive officer within 24 months. The company announced Shearer’s departure in a regulatory filing with the U.S. Securities and Exchange Commission (SEC). As president, Shearer headed the Clinique, Aveda, Origins, Bumble and Bumble and Ojan brands, as well at the company’s online business. The filing noted that ELC executives who reported to Shearer would report to Lauder until Freda arrives. Reporting to Freda, would be most of the company’s key global brands and specialty brands, such as Bobbi Brown, La Mer, Jo Malone and Darphin.

The company also named Dan Brestle, chief operating officer, as vice president, ELC North America. Brestle will oversee the Estée Lauder, M—A—C, Pregascriptive and Tom Ford beauty brands, which continue to be led by group president John Demsey, and the Beauty Bank division globally.

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