Coty CEO Sue Nabi steps down as former P&G exec named successor
Just days after reports surfaced that Coty’s controlling shareholder was pushing for a leadership reset, the beauty group has confirmed that CEO Sue Nabi is stepping down.
Nabi (pictured above) will be succeeded on an interim basis by Markus Strobel, who has also been appointed Executive Chairman of the Board, according to WWD. Strobel joins Coty after a 33-year career at Procter & Gamble, where he most recently served as President of its global skin and personal care business, overseeing categories spanning prestige fragrance, haircare and grooming.
Last week, reports surfaced that JAB Holding, Coty’s controlling shareholder, was exploring a leadership shake-up amid ongoing performance pressures. At the time, sources suggested the reset could begin with Nabi’s exit, alongside changes at board level. That process now appears to be underway.
Strobel replaces long-standing Chairman Peter Harf, who will retire from the board after more than three decades of service. The leadership change comes at a critical juncture for Coty, which continues to struggle to reignite growth in mass beauty while becoming increasingly dependent on prestige fragrance.
Shares in Coty fell 3.5% following the announcement, closing at $3.15. The company’s stock has lost around 73% of its value over the past two years, reflecting investor concern.
Much of that concern centres on Coty’s licensing portfolio. The group is set to lose its Gucci beauty and fragrance licence in 2028 after Kering agreed to sell its beauty business to L’Oréal - a deal that removes what many analysts describe as Coty’s "crown jewel".
At the same time, Coty is actively reviewing its mass colour cosmetics division, which includes CoverGirl, Rimmel, Max Factor and Sally Hansen. The strategic review, announced in September and led by Citi, is assessing options including partnerships, divestitures and spin-offs as Coty looks to reduce debt and sharpen its focus on higher-margin categories.
Earlier this month, the group also sold its remaining 25.8% stake in Wella to global investment firm KKR, further simplifying its portfolio and operations. Under the terms of the transaction, Coty will receive $750 million in upfront cash, as well as 45% of any proceeds from a future sale or initial public offering of Wella, after KKR’s preferred return has been met.
Nabi leaves Coty as one of beauty’s most high-profile executives. In 2023, she was the highest-paid beauty CEO in the US, with total compensation of $149.4 million. Her departure package includes a lump sum of approximately $1.74 million and the vesting of more than two million restricted stock units, according to an SEC filing.
