Management Turnover as Change Agent

Tuesday, November 27, 2007

Cosmetics President Resigns - Stock Drops

Monday, Bare Escentuals BARE (NASDAQ), a cosmetics company, announced the surprise resignation of Diane Miles, who served as president of the firm for nearly a year and a half. Miles was considered instrumental in the company's success over the year. The company listed Ms. Miles on their website:
Diane M. Miles has served as President of Bare Escentuals since May 2006. Prior to joining Bare Escentuals, Ms. Miles served in a variety of positions at LVMH Moët Hennessy Louis Vuitton, a manufacturer of luxury goods, from October 1990 until May 2006, most recently as the Chief Executive Officer of Benefit Cosmetics, a cosmetics division of LVMH, from October 2003 to May 2006. Under LVMH's Christian Dior apparel brand, she served as Senior Vice President of Marketing from 2000 to 2003 and Marketing Director from 1990 to 2000. Before LVMH, Ms. Miles started her beauty career with L'Oréal, and held several management positions for Lanc™me, Biotherm and Vichy, cosmetics/dermatology divisions of L'Oréal. Ms. Miles received an M.P.S. from the University of London.
The company's Monday announcement stated:

Diane Miles resigned "to pursue other opportunities effective immediately."

According to San Francisco's Business Times :

Jim Taschetta, the company's chief marketing officer, will supervise sales and marketing workers until a replacement for Miles is hired. The new person's job title will be senior vice president of wholesale sales.

Bare Escentuals' stock price was down at one point today nearly 14%. Miles was an instrumental component of the company's success and the market demonstrated its worries over whether the company could effectively replace her talents.

Keep a close eye on how Bare Escentuals handles this major management loss.

For more:


1 comment:

Linda said...

I think that Dior cosmetics is just the best!!!