The sudden departure of Sophie Guieysse, Group EVP Human Resources at Richemont, amidst a controversy over executive remuneration policies has sent shockwaves through the Swiss luxury goods giant. The decision to increase the remuneration of the executive committee by 35.8%, bringing it to a total of CHF41.4 million (€38.7 million), while simultaneously reducing annual bonuses for employees and withholding extra support for furloughed workers, has sparked unrest among staff members.
Reports of walkouts in Milan and Turin have highlighted the discontent within Richemont’s workforce, prompting the company to take action. Guieysse’s departure, viewed as a strategic move to address internal tensions, signifies a significant shift in the company’s leadership. With her extensive experience in the luxury industry, having held positions at renowned institutions like LVMH and Canal +, Guieysse’s absence from the upcoming board meeting in September marks a significant change for Richemont.
In the midst of these internal conflicts, Richemont has also been facing financial challenges, reporting a substantial 67% decrease in operating profit to €931 million. Despite a modest 2% increase in revenue to €14.238 billion in the last financial year, the luxury goods giant is navigating a tumultuous period.
As Richemont grapples with both internal strife and external financial pressures, the departure of Sophie Guieysse serves as a turning point for the company. Navigating these challenges will be crucial for maintaining Richemont’s reputation and competitive position in the luxury goods industry.
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