After his sentence to one year in prison suspended in 50,000 euros fine as part of the "Tapie trial", Stéphane Richard, the CEO of Orange immediately proposed his resignation to the Board of Directors.
The latter accepted it early Wednesday evening.
Stéphane Richard will nevertheless continue to exercise his functions until the establishment of a new governance, on January 21 at the latest.
On Wednesday morning, the long awaited verdict of the Paris Court of Appeal in the context of the “Tapie trial” fell. The court decision which ends ten years of presidency of Stéphane Richard, was initially due on October 6. But the death of Bernard Tapie three days earlier had prompted the Court to postpone its decision. The disappearance of the businessman has put an end to the proceedings against him, without changing anything for his co-defendants. Stéphane Richard was prosecuted for his role in the arbitration of the Tapie Crédit Lyonnais Affair in 2008. The boss of Orange was then Chief of Staff to Christine Lagarde, herself then Minister of the Economy. An arbitration tribunal had awarded 404 million euros to the businessman, in order to settle the dispute thatopposed the bank since the sale of Adidas in 1992!
Read also Orange: the future of Stéphane Richard suspended from the verdict of the Tapie trial
Quickly, the decision had been criticized.
In 2013, a new twist: Bernard Tapie, Stéphane Richard, who became CEO of Orange, the former magistrate Pierre Estoup and the historical lawyer of Bernard Tapie Maurice Lantourne are indicted for "
swindle in organized gangs
".
Two years later, the arbitration was quashed by the Court of Appeal.
Then in 2017, the five defendants were sent back to correctional facilities.
It was not until 2019 that the general acquittal was pronounced at first instance.
But the prosecution did not stop there and appealed.
With the verdict that we know: Stéphane Richard, sentenced for "
complicity in public embezzlement
», Receives a one-year suspended sentence and a fine of 50,000 euros. A less severe sentence than that of inflicted on Pierre Estoup, sentenced to three years in prison and a fine of 300,000 euros and to Maurice Lantourne, to three years in prison including one firm year, a fine of 300,000 euros and a ban exercise for five years. To believe that “
the verdict has been calibrated. The prosecution does not change its mind and Stéphane Richard could claim to remain in the presidency of Orange,
”analyzes a lawyer.
Behind the scenes, many people see Stéphane Richard as a “fuse” in this affair. Moreover, this one does not say anything else, affirming at the exit of the court:
"I only carried out the ministerial decision to go to arbitration, which was completely assumed by Christine Lagarde. Who was also condemned for simple negligence. This is to understand nothing and deeply unfair
”.
A feeling that also prevails in the ranks of the operator. "
It was fashionable at Orange to think - or pretend to think - that he would be recognized as innocent
", slips a person close to the file. "
Because Stéphane Richard says he is innocent, we thought that the verdict would exonerate him
», Adds another relative. Stéphane Richard explains that he “
totally
rejects
the accusations
” and “
will appeal to the Supreme Court
”. "
I did nothing but execute the ministerial decision to go to arbitration, which was totally assumed by Christine Lagarde,
" he adds. A situation which partly explains the amazement of some protagonists at the announcement of the verdict.
"The
announcement of the conviction of Stéphane Richard by the Court of Appeal was a shock for the staff of Orange
," said Sébastien Crozier, president of the CFE-CGC of Orange.
I
s no urgency to remove Stéphane Richard his two terms (President and CEO), although its maintenance is not sustainable.
The Board of Directors must take the time to choose the best candidates for the positions of Chairman and Chief Executive Officer.
Orange is an essential company for the nation
”.
The CFE-CGC Orange recalls that the second largest shareholder of Orange are the staff with nearly 7% of the capital and 11% of the voting rights.
An upset organization
However, it has been several months since the group got under way to prepare for the end of Stéphane Richard's mandate. The governance of the group also provides that the deputy CEOs Gervais Pelissier and Ramon Fernandez act as interim if necessary. Far from the scenario favored by Stéphane Richard and his team. The boss of Orange had himself set a framework focusing on the separation of the functions of chairman from those of managing director. He was then considering his continued non-executive chairmanship of the group for four more years, alongside an executive director general. The latter should have been appointed before the end of the year, so that the process could be completed before the campaign for the presidential election is in full swing.It is also a way of managing a smooth handover.
Read also Orange: Stéphane Richard ready to let go of general management but wants to remain president
But the beautiful organization was shattered. The calendar was first upset by the judicial agenda with the postponement of the verdict from October 6 to November 24, then by the court decision. She took the leaders and administrators of Orange against the grain. Banking on a new release, the operator's board of directors, and more specifically the Governance and Social and Environmental Responsibility Committee, set out to find a CEO, "
compatible with Stéphane Richard
" from the start. beginning of summer. Spencer Stuart has been commissioned (our November 7 editions). Several internal and external candidates were heard, starting with "
the administrators who wished it
”, Or a good half of the Executive Committee of Orange. Ramon Fernandez, Group CFO, Michael Trabbia, Innovation Director, Jean-François Fallacher, CEO of Orange Spain, Fabienne Dulac, CEO of Orange France, would be among the candidates for the post.
If an internal candidacy had the favors of Stéphane Richard, the State pleads on the other hand for a contribution of new blood, "a boss with Ben Smith (Air France), who would be at the same time a keen connoisseur of the sector and external to it. 'business". A man or a woman who is able to shake the Orange coconut tree. The only problem: the salary. In 2019, the annual compensation (fixed and variable) of Stéphane Richard amounted to 1.6 million euros, far from the average of that of the CAC 40 bosses, 5.8 million and not commensurate with the highest CAC salaries (23 million euros). To attract a "talent", it would be necessary either to bet on a great clerk of the State, a profile ultimately similar to that of Stéphane Richard, or to take out the checkbook or! A difficult gesture in the middle of an election campaign,with the subject of the purchasing power of the French in focus.
