Governance
Proactive and committed board members
The composition of the Board reflects L’Oréal’s shareholding structure and guarantees the interests of all its shareholders. Alongside the Chairman and Chief Executive Officer, there are five directors who represent L’Oréal’s major shareholders, seven independent directors and two directors representing the employees.
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 of 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 2016, the Board’s composition became even more diversified, with a higher proportion of women and greater internationalisation. The Board’s women directors now represent 46% of the total, and 50% of the Committees are chaired by women independent directors.
A Board of Directors that fully plays its role of reflection and strategic impetus
The Board devotes the bulk of its work to strategic issues, to foster and accelerate the group’s transformation into a more universal, more digital and more sustainable L’Oréal. 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, which were numerous in 2016, and regularly holds meetings with the group’s senior executives. The strategic seminar in June 2016, for example, was held in New York, where thorough and thoughtful discussions with the local teams enabled the Directors to forge a clear opinion of L’Oréal’s development opportunities in the United States.
This transparent and constructive dialogue culminates in a shared strategic vision, which gives the General Management the confidence that is necessary for its implementation.
This transparent and constructive dialogue culminates in a shared strategic vision, which gives the General Management the confidence that is necessary for its implementation.
Proactive and committed directors
Extremely determined and proactive, the directors are convinced that stringent governance creates value for the company, and they always keep the company’s long-term interests first in mind as they voice their opinions.
The directors play a dynamic and assiduous role in the work of the Board and its four Committees, which actively contribute to preparing the Board’s deliberations.
The Board closely monitors changes in best practices and, to ensure that constant progress is achieved, carries out a full review of its modus operandi and organisation every year. When it does so, it defines the themes to be focused on as a matter of priority, so as to fully play its part in providing the impetus for L’Oréal’s long-term strategy.
The directors play a dynamic and assiduous role in the work of the Board and its four Committees, which actively contribute to preparing the Board’s deliberations.
The Board closely monitors changes in best practices and, to ensure that constant progress is achieved, carries out a full review of its modus operandi and organisation every year. When it does so, it defines the themes to be focused on as a matter of priority, so as to fully play its part in 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 the Code of Ethics. In 2016, the Senior Vice-President and Chief Ethics Officer presented the ethics policy and the initiatives taken in this field, as well as their results. The Board considers these policies to be an integral part of L’Oréal’s growth model; it supports their implementation and regularly measures the advances made.