Liliane Bettencourt

Liliane Henriette Charlotte Bettencourt (born Schueller; Paris, October 21, 1922 – Neuilly-sur-Seine, September 21, 2017), was a French entrepreneur, businesswoman, and socialite. Along with the group Nestlé, she was one of the main shareholders of L'Oréal. She was the daughter of the founder of the multinational cosmetics company Eugène Schueller. In 1950, she married French politician André Bettencourt and they lived together in the French town of Neuilly-sur-Seine until André’s death in November 2007.

According to the Forbes publication group, she was the world's richest woman, with an estimated fortune of million in 2017.

Biography

She was the only daughter of Eugène Schueller. At the age of five, she lost her mother, which led to a close relationship with her father. She later said of their bond: “He taught me to love life and the value of effort. For that alone, I bless him.”

At age 15, Liliane worked labeling products at the L'Oréal plant in Aulnay, a job she interrupted after contracting tuberculosis. She later went to Switzerland to recover and there she met her future husband, André Bettencourt.

She married André in 1950, and in 1957 her father passed away. To manage L'Oréal, she hired François Dalle, a childhood friend of André, as managing director and president of the firm, a position Liliane never wished to hold herself.

Business

Among other projects initiated by François Dalle, Liliane supported the acquisition of Garnier, a move that was risky at the time but turned out to be highly profitable. She kept all the shares of L'Oréal until 1974, when she sold 46.3% in exchange for 4% of Nestlé’s shares, which went to her holding company Gesparal.

Dalle held the position for 30 years, and his successors were also chosen by Liliane. In 1988, L'Oréal acquired Maybelline, which proved to be another very profitable move. The imbalance in value between L'Oréal and Nestlé shifted dramatically—from being worth thirteen times less in 1980, by the 1990s, L'Oréal was worth twice as much. In recent decades, L'Oréal also acquired Urban Decay, Nyx Cosmetics, and The Body Shop.

Assets

In 1997, she bought D'Arros Island in Seychelles in the Indian Ocean, though ownership was only revealed in the 2010 scandal. The local government confirmed she had bought the island for $18 million. In August 2012, she sold it to Swiss company Chelonia Ltd., linked to the Save Our Seas Foundation, for million plus $10.5 million in taxes; it is now a nature reserve.

Bettencourt Schueller Foundation

She founded the Bettencourt Schueller Foundation in 1987 with her husband and daughter, focusing on patronage. The foundation supports projects in scientific education and research, humanitarian and social initiatives, and cultural programs.

The Bettencourt-Woerth Affair

In summer 2010, daily revelations emerged in the press about the "Bettencourt-Woerth affair." It began in 2007 after the death of her husband. Her daughter opposed her relationship with photographer François-Marie Banier, who received lavish gifts including €1 billion in 2008.

Though she suffered from severe hearing loss in her 80s, she was deemed mentally competent. A temporary reconciliation occurred, but her daughter later objected to her lawyer Pascal Wilhelm. In December, doctors diagnosed her with moderately severe Alzheimer's with possible vascular involvement. She was declared legally "mixed dementia" and placed under guardianship, with her grandson Jean-Victor Meyers assigned as guardian.

The case began with recordings secretly made by her butler Pascal Bonnefoy, handed to her daughter Françoise. These revealed Swiss accounts, loans, and illegal political donations to Nicolas Sarkozy’s presidential campaign.

The first political casualty was Labour and Finance Minister Eric Woerth, who was charged with "influence peddling" for receiving €50,000 for Sarkozy's campaign, though some estimates suggest it totaled €150,000.

Bettencourt Case

The Bettencourt case was a high-profile legal and media scandal involving L'Oréal heiress Liliane Bettencourt and her friend François-Marie Banier. The case revolved around the lavish gifts Bettencourt gave Banier between 1997 and 2007, totaling over €1 billion. Her daughter Françoise Bettencourt Meyers accused Banier of exploiting her mother's mental vulnerability due to dementia.

Controversy:

• Excessive donations: The size of the gifts and Bettencourt's condition raised questions about informed consent.
• Exploitation of vulnerability: Bettencourt Meyers claimed Banier manipulated her mother for financial gain.
• Illegal political financing: Investigations explored possible illicit donations to French politicians, including Nicolas Sarkozy.

Timeline:

• 2007: Judicial inquiry begins.
• 2010: Leaked audio recordings revive the scandal.
• 2011: Settlement reached acknowledging Banier's undue influence.
• 2015: Banier convicted of exploiting Bettencourt; sentenced to suspended prison term.

Impact:

• Elder protection: Strengthened French laws to prevent elder financial abuse.
• Reputation damage: Tarnished both Bettencourt’s and L'Oréal’s public image.

Further reading:

• Netflix documentary: "The Bettencourt Affair: The World's Richest Woman Scandal"
• Infobae article: "The Bettencourt Case: The Inheritance War Between Mother and Daughter"

External links

• Bettencourt Foundation
• The Legacy of Liliane Bettencourt