Guess?, Inc. (NYSE:GES) co-founder Paul Marciano is leaving the company after a sexual misconduct probe.
The Guess co-founder is immediately stepping down as the company’s Executive Chairman. However, he will remain on its Board of Directors until 2019. He is also still serving as the Chief Creative Officer of the clothing brand and retailer.
While the Guess co-founder is still with the company, he will be leaving it behind once his contract expires. This will occur on Jan. 30, 2019. Until then, he will continue to work for the company and will still earn his salary.
The sexual misconduct probe that is likely behind this whole ordeal has to do with the Guess co-founder’s actions toward models and photographers. This includes claims of inappropriate kissing and groping. Including allegations from model Kate Upton.
A special committee was formed to look into the matter. It says it was unable to verify the allegations made against the Guess co-founder. However, it did note that it learned of his “poor judgement in his communications with models and photographers”. This will have him and the company paying five people $500,000, reports BBC News.
“I represent 4 of the 5 women who stood up against him. They detailed for Guess lawyers their sexual assault stories,” Attorney Lisa Bloom said in a Tweet. “We fought for and achieved a nonconfidential settlement of $400,000. Delighted this day has arrived.”
In following Tweets, Bloom expressed concern about the Guess co-founder continuing to remain on its Board of Directors. She also clarified that two of her clients went to police with their allegations.
GES stock was down slightly as of Wednesday afternoon.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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