Stable governance in a swiftly changing cosmetics market
The composition of the Board of Directors reflects L’Oréal’s unique shareholding structure and guarantees the interests of all its shareholders. Alongside the Chairman and Chief Executive Officer, there are three directors from the Bettencourt Meyers family, two from the Nestlé company, seven independent directors and two directors representing employees.
Governance is more essential than ever in an increasingly VUCA (Volatile, Uncertain, Complex and Ambiguous) world: it is imperative that we can take advantage of multiple perspectives and different kinds of expertise to decipher and understand it, grasp the opportunities and constantly adapt the business to it.
Chairman and Chief Executive Officer
The diversity and complementarity of the directors’ industrial, financial and entrepreneurial expertise equip them to quickly and thoroughly comprehend the development challenges facing L’Oréal, the leader in a globalised and highly competitive cosmetics market in which the need to innovate and adapt is crucial. Most of the directors have experience managing international groups at the highest level. In 2019, the Board welcomed a new independent director, Fabienne Dulac, Chair and Chief Executive Officer of Orange France and Deputy Chief Executive Officer of the Orange Group.
As of 31 December 2019, Board members represented seven different nationalities, with an almost even gender balance (54% women). Three of the four committees are chaired by independent female directors.
The diverse experience and expertise they bring ensures free, in-depth and spontaneous discussions.
A board of directors that fully assumes its responsibility to provide strategic reflection and impetus
The Board devotes most of its time to strategic issues, to foster and accelerate the Group’s transformation into a more digital and more sustainable L’Oréal, which takes full account of social and environmental issues. The Board is kept informed throughout the year about the Group’s activities and results, its positions in relation to its competitors, market trends and the expectations of consumers all over the world. It examines acquisition projects and monitors the integration of recently acquired companies. It is kept up to date with progress on L’Oréal’s Corporate Social and Environmental Responsibility Programme “Sharing Beauty With All” and monitors carefully the Group’s initiatives on diversity, the gender mix and inclusion.
The directors have regular meetings with the Group’s senior managers for an update on their achievements and the main development issues they face in their respective areas. This transparent and constructive dialogue culminates in a shared strategic vision, which gives General Management the confidence necessary for its implementation.
A strategy meeting was organised in June 2019, on the topic of Beauty in 2030.
Proactive and committed directors
The directors are committed and proactive, driven by the conviction that stringent governance creates value for the company. They always keep the company’s long-term interests first in mind as they voice their opinions.
The directors play a tireless and dynamic role in the work of the Board and its Committees. Board committees issue detailed, insightful, reasoned recommendations that feed into the Board’s discussions and inform its decisions.
The Board carries out a full review of its modus operandi and organisation every year from a continuous improvement perspective. It determines which topics to prioritise at this annual review, in line with its role of providing the impetus for L’Oréal’s long-term strategy.
Ethics at the heart of L’Oréal’s governance and commitments
The Board of Directors places great importance on respecting L’Oréal’s ethical principles – Integrity, Respect, Courage and Transparency – and more generally its Code of Ethics. In 2019, the Senior Vice-President and Chief Ethics Officer presented the ethics programme and the initiatives taken in this field, as well as their results. The Board considers this programme to be an integral part of L’Oréal’s growth model, supports its implementation and regularly measures the advances made.
