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Peugeot Invest prepares family succession with Russell Reynolds

 


La Lettre | June 2, 2021


The La Lettre article, 'Peugeot Invest prepares family succession with Russell Reynolds' discusses how to get young family representatives on the board. The article is excerpted below in English.

The holding company Peugeot Invest, which convened on May 12th for its annual general meeting, confirmed its wish to get young representatives from the Peugeot family sitting on its board of directors. The group is counting on the services of the Paris branch of headhunter Russell Reynolds, and in particular the firm's partner Marc Sanglé-Ferrière.

Marc Sanglé-Ferrière is co-head of the European board and CEO practice and specialises in succession issues within family-owned groups and listed companies. Prior to joining Russell Reynolds in 2005, Marc Sanglé-Ferrière served as chief of staff to Capgemini CEO Paul Hermelin.

While the automotive group is already more than a century old, its managers need to find and develop members among the growing number of family representatives who have the profile to one day head the firm. In May 2020, Peugeot Invest thus appointed three young directors, whose onboarding process continues. They each hold ten Peugeot Invest shares, a minimum stake for their early career in the group. By comparison, Chairman Robert Peugeot owns almost 10,000 shares.

Robert Peugeot's son on the Board of Directors

The oldest of the young hires, Edouard Peugeot, 37, senior principal of the London-based asset manager Tower Brook, is the son of the holding company's current chairman, Robert Peugeot. The youngest member of the board, Armand Peugeot, 27, is the son of Marc Peugeot, director of the holding company Etablissements Peugeot Frères (EPF), which owns 80% of Peugeot Invest. A 2018 graduate of the ESSEC business school, Armand is an associate at Clipperton, an investment bank specialising in the tech sector based in Paris and London. His second cousin, Sophie Banzet-Bérets, 34, an executive at Airbus in Hamburg, is the daughter of Frédéric Banzet, head of the British subsidiary of Peugeot Invest UK and former CEO of Citroën (2009-2014).

Unlike their elders already on the Board of Directors, the new recruits have yet to work for the family group. Chairman Robert Peugeot and his directors Jean-Philippe, Marie-Hélène, Christian and Xavier Peugeot have spent part, if  not all of their careers with the company.

Financial profiles

The recruitment of Armand and Edouard Peugeot, with their financial profiles, is consistent with Peugeot Invest's strategic option to cooperate increasingly with generalist investment funds. The group has already made commitments to several private equity funds, and also participates in co-investments with major French funds such as PAI Partners.

Peugeot Invest has deliberately diversified its interests outside the automotive sector. Through its subsidiary Peugeot 1810, which accounts for just under half of its assets (40%), Peugeot Invest holds the family's stake in the car manufacturer Stellantis. The family also takes out significant stakes in companies with an international reach - one example being its latest investment of $306 million in February 2021 in International SOS, an expatriate security and emergency medical care specialist. Founded by Frenchmen Arnaud Vaissié and Pascal Rey-Herme, International SOS is based between London and Singapore.

Read the full article in French here.

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Peugeot Invest prepares family succession with Russell Reynolds