Sue Nabi is exiting Coty as chief executive officer and will be succeeded on an interim basis by Markus Strobel, who has also been named executive chairman of the board.
Strobel joins Coty after a 33-year career at Procter & Gamble, where he most recently served as president of P&G’s global skin and personal care business.
“I am delighted to join Coty at this important juncture,” said Strobel. “Building on Coty’s strong foundations, I see tremendous potential to accelerate growth, strengthen our position in prestige and mass beauty, and deliver sustainable value for shareholders, partners, and consumers worldwide.”
Strobel succeeds Peter Harf as executive chairman. Harf will retire from Coty’s board after more than three decades of service, while Nabi is stepping down as CEO following a five-year tenure.
Nabi was beauty’s highest-paid beauty executive in the U.S. in 2023, the latest figures released, with a total compensation of $149.4 million. She spent 20 years working at L’Oréal prior to launching Orveda.
The executive changes come at a trying time for Coty, which is set to lose its jewel-in-the-crown Gucci license for fragrance and beauty when it expires in 2028. (According to Evercore IRI, that brand accounts for about 8 percent of Coty’s sales and approximately 11 percent of its profits.)
News of the license changing hands was announced in October as part of the deal between L’Oréal and Kering, owner of Gucci.
Concurrently, Coty is carrying out a strategic review of its mass color cosmetics business, as well as of its operations in Brazil, as announced in September. That will focus on Coty’s $1.2 billion revenue mass color cosmetics business, including brands such as CoverGirl, Rimmel, Sally Hansen and Max Factor, and its $400 million revenue Brazil business, composed of local Brazilian brands. The review, being carried out by Citi, will assess a full range of alternatives, including partnerships, divestitures and spin-offs.
On Dec. 19, Coty sold its remaining 25.8 percent stake in hair care giant Wella to KKR.
Under terms of the deal, Coty is to receive an upfront cash consideration of $750 million and 45 percent of any proceeds from a further sale of or an initial public offering once KKR’s preferred return has been met.
The upfront cash proceeds from the transaction, net of tax, will be used to pay down Coty’s short- and long-term debt.
