Billionaire Peugeots Hire Private Equity Manager as New CEO
The billionaire Peugeot family has hired Jean-Charles Douin as CEO to try to put an end to shareholder revolt and portfolio missteps within
Etablissements Peugeot Freres SA’s listed investment firm. Douin will take over by no later than Oct 28 according to company officials; he’ll replace Bertrand Finet who’ll step down at the end of this month; board member Nicolas Huet will serve as interim CEO until Douin joins.
Douin, 46, has two decades of experience working at firms such as Ontario Teachers’ Pension Plan and CapVest. A graduate from HEC Paris with work experience in London, Frankfurt and Amsterdam; Douin is just the latest manager to depart Carlyle Group Inc. to join family offices or alternative-investment firms.
As part of its public criticism, the Peugeot family’s publicly traded holding company faces its annual meeting this Friday at which investors are expected to demand change. They want it cut its dividend, increase executive compensation tied more closely to share price and trading discount fluctuations and temporarily stop further diversification until its ability to create value has been proven.
Investors have expressed serious reservations regarding several issues at the firm, such as losses from nursing-home operator Orpea and bankrupt property developer Signa as well as high operating costs and governance and remuneration policies. It marks the first time the Peugeot clan’s investment firm has come under such widespread fire from minority shareholders.
The Peugeot family made their fortune in France’s automotive industry, but their investments now span various fields from steel and automotive supplier Forvia to stake in newly formed Stellantis. According to Forbes Billionaires List, their wealth is estimated at an estimated $80 billion; including holdings such as controlling stake in public automaker Peugeot; privately held Societe Automobile Peugeot SA which will merge with Fiat Chrysler Automobiles in 2021 to form Stellantis and several private companies and funds with stakes held by them.
