Stefan Persson

"off. Stefan Persson led H&M’s"

"Even clothing billionaire Stefan Persson, the second generation in the family business, manages just fine. When he does run into problems, it’s not about his enormous wealth, but rather about H&M’s connections to child labor in poor countries. But he has never been accused of tax crimes and is registered in Sweden. Instead, he and a few others in the same category manage to achieve high status as “Sweden’s biggest taxpayers.” While there is an underlying sensationalist fascination with someone who pays 1.5 billion in taxes per year, the image of a pillar of society is created. So, judging by the Persson family, a Swede is allowed to become very rich without being condemned, but it must have happened in a way the public can understand. The understanding creates a certain acceptance for inequality in society."

"Stefan Persson takes a different role during the establishment. While Erling Persson is on site once a month, Stefan Persson visits Germany at most once a quarter, when the German manager Edgar Rosenberg has interesting new store locations to show in the major cities. At this time, Stefan Persson focuses on finding the best store locations and then he puts all his energy into negotiating with property owners who are not familiar with H&M before. They have big dragons to fight, Dutch C&A and department stores like Karlstadt and Kaufhof. When the CEO of H&M himself comes down to negotiate a new store, it gives a completely different weight. Erling Persson makes his spontaneous visits, and combines them with sauna bathing. Stefan Persson always has an agenda."

"The first out as Christmas model is Elle Macpherson, who in the fashion industry is nicknamed "The Body". Yes, the whole "big six" of supermodels - Elle Macpherson, Cindy Crawford, Naomi Campbell, Claudia Schiffer, Christy Turlington, and Linda Evangelista - are doing H&M campaigns. That Elle Macpherson is the first out is a decision made by Stefan Persson himself, he says in an interview a few years later. He mentions that he first falls for a woman's eyes. "From them comes warmth, humor, and radiance." The interview is conducted after his divorce from Pamela, and he comments on the separation with an openness that is unusual for him.[44](private://read/01jas9tvg84jycb27616w1f9k8/#note-44)"

"At that time, around four thousand people worked at H&M. It was still a relatively small and personal company. As a leader, Stefan Persson was not particularly present in daily operations, Lemner says, but if you asked to talk to him, you could. The decision-making paths were short and informal."

"In 1987, H&M turns forty, and Stefan Persson celebrates by inviting the press to a big party at the English castle Hever Castle, dating from the 12th century, a two-hour drive from London. The castle had been inhabited by Henry VIII's second wife Anne Boleyn. Present are models from Sweden, England, and France. H&M offers a buffet and fashion show in the old castle garden. A smiling Stefan Persson is photographed in the castle park with a glass of champagne in his hand, flanked by his PR chief.[42](private://read/01jas9tvg84jycb27616w1f9k8/#note-42)"

"In February 1985, 68-year-old Erling Persson transfers a large portion of his shares to his son Stefan Persson, now 38 years old.[39](private://read/01jas9tvg84jycb27616w1f9k8/#note-39) This means that the son, as the majority owner, can theoretically make decisions alone at the shareholders' meetings. During this record year, Erling Persson also leaves H&M's board. In four years, with Germany as the driving force, the company doubles in size. However, the German managers unexpectedly resign when they feel that Stefan Persson does not want to share the profits from the successes, Thomas Enderstein tells."

"Eventually, Stefan Persson triumphs over Göran Persson's government. The tax proposal is changed, and Stefan Persson receives a nearly tailor-made law on wealth tax, where he is completely exempt from taxation. The law applies to the small group of shareholders who own more than 25 percent of the votes in a company that was listed on the stock exchange's A-list before January 1, 1992. Dagens Industri calls them "tax nobility".[61](private://read/01jas9tvg84jycb27616w1f9k8/#note-61) The number of companies affected can be counted on the fingers of one hand—and one of them is Hennes & Mauritz. Not only that, all members of the Persson family are covered by the law, regardless of whether the shares are owned directly or through wholly-owned companies."

"The fact that the heads of the most important new H&M market, Germany, are quitting in protest against Stefan Persson's way of managing the company is not disclosed to either shareholders or the public. Instead, Stefan Persson is named Leader of the Year 1988.[40](private://read/01jas9tvg84jycb27616w1f9k8/#note-40) The jury writes that "Stefan Persson is a merchant in the purest sense of the word" and in the award from Leadership and Economic Business Management, EF, it states that he has surpassed his father. "He took over the baton and he has shown that he can run even faster and better." Stefan Persson is described as a cautious, listening, low-key person who dislikes self-promotion."

""No. That is not at all the purpose for us to get this kind of publicity. I don't think it harms either," replies Stefan Persson. "First and foremost, I want to say that I support and sympathize a lot with what the women's shelter accomplishes. But I definitely do not share the opinions about H&M's advertising. And perhaps that was not to be expected otherwise. I actually do not think there is a single element of pornography in this advertising.""

"When Cecilia Zadig finds the subcontractor's factory in a small village outside Manila, it turns out to be a completely different standard here than at the larger factories. In cramped and dirty premises, young women sit by large piles of H&M clothes. This is where the green and white polo shirt is actually sewn. A woman named Angelina Nico sits at one of the knitting machines doing the monotonous work. She has brought her little daughter, who is sleeping on a pile of t-shirts. Angelina Nico works seven days a week, often from 8 am to midnight. And she often sleeps over at the factory. She earns only twenty crowns a day, which is not enough for more than food for the family. The house that she bought when she had a higher salary from another factory stands half-finished and overgrown because she lacks money. The young Filipina is exhausted from work. Cecilia Zadig shows her the issue of the magazine Månadsjournalen that has Stefan Persson and Erling Persson on the cover. Both are wearing suits and looking confidently into the camera. "Secret and Rich," is the headline. When Angelina Nico learns that these are the men she works for, she pleads with them to help her with money for her children's education. She herself will never escape a life of poverty, but her highest wish is for her daughter to have a better future. But Zadig's report doesn't end there. It turns out that this textile factory in turn hires subcontractors to be able to keep the prices offered by H&M. They are called home workers, working for even less money. And those who work the cheapest are the children."

""The government and other politicians accuse corporate leaders of threats, but they must realize that with the EU, we are in a new competition situation. Naturally, companies choose the most attractive areas. It's up to the politicians to ensure they create attractive opportunities for investors and entrepreneurs," says Stefan Persson."

"Stefan Persson has not considered what he will do with the millions that previously went to taxes, he tells Svenska Dagbladet: "I haven't thought much about it, but they go to private investments."[66](private://read/01jas9tvg84jycb27616w1f9k8/#note-66)"

"It is a crucial moment in his career, no matter how reluctantly he faces it. His and his father’s life’s work is being questioned. If he fails to suppress this scandal, decades of hard work may crumble. The program’s softly rumbling trumpet fanfare starts, and a rotating shredded A for Aktuellt appears on the screen. Host Lars Adaktusson looks stern. The labor movement reacts strongly to SVT's documentary on child labor. Several cabinet ministers want to boycott H&M. In a longer interview, the chairman of the Swedish Trade Union Confederation, Bertil Jonsson, considers urging pension funds where the Trade Union Confederation is on the board to also sell their H&M shares, including the Fourth AP Fund which owns five percent of H&M. Stefan Persson is in Africa, but is available on the phone. A photo of 50-year-old Stefan Persson in a brown jacket, white shirt, and tie is shown in the image."

""In cases where the rules have not required it, I have never gone public with what I do with my private placements and I am not doing it now either," Stefan Persson tells Dagens Industri.[69](private://read/01jas9tvg84jycb27616w1f9k8/#note-69)"

"Clothing analysts remain skeptical about whether H&M will succeed in the tough American market. However, Stefan Persson's venture turns out to be a stroke of genius. The opening is well received and more stores quickly follow. By the end of 2000, H&M is awarded the International Retailer of the Year by America's National Retail Federation. In contrast, main competitor GAP stagnates in growth. Soon, the USA becomes H&M’s largest market after Germany."

""Our business idea is that we should always have the latest fashion and we should have it at the lowest price in the market for a comparable item," explains Stefan Persson to the fashion journalists, but continues humbly: "And lately, we've also worked a lot on improving the quality. Although we know there's still a way to go.""

""I think this is absolutely terrible. Being a model is her profession. If she has anorexia, it is a matter between her and her doctor, and possibly her family," Stefan Persson thunders, continuing: "There is surely no way to determine whether she has diabetes or if she suffers from cancer or if she has AIDS or anorexia. This is certainly not sick advertising, rather it is a sick debate. There are surely anorexics at H&M. They are allowed to keep working here. We are not going to demand any medical examination or any teaching certificate.""

"As the country manager for France, Stefan Persson has chosen his friend from Djursholm, Michael Lemner. Michael Lemner has made exactly the kind of rapid career within the company that characterizes Stefan Persson's leadership style, where those who are ambitious and show the right spirit are quickly promoted. And the turns can be sharp. At the beginning of the 90s, Stefan Persson had announced that Michael Lemner would be placed in Brussels to establish H&M in Belgium. When will this happen? Larsson asked, and Stefan Persson answered without blinking: "Tomorrow.""

"The yellow taxis resemble a lava stream flowing south along the one-way Fifth Avenue in New York. On the sidewalks, businessmen in Armani suits walk with a paper cup of coffee in one hand and a mobile phone in the other. This parade street is the address for some of Manhattan's biggest tourist attractions: Rockefeller Center and the circular architectural museum Guggenheim. At the corner of Fifth Avenue and 51st Street on the Upper West Side, H&M's team has finally found the perfect spot. On 3,000 square meters of retail space across three levels, New Yorkers will be offered departments for men, women, youth, and cosmetics. Large glass windows form an enticing front facing the street. It is not possible to find many more expensive retail addresses anywhere in the world. Right next door, the luxury brand Gucci has its store. Stefan Persson says in a radio interview that low-price H&M still becomes a good neighbor."

"The CEO position is taken over by H&M's director of purchasing, Fabian Månsson – which surprises everyone. Månsson, who studied at the School of Business, Economics and Law, is introduced as a former rock musician. He is only 33 years old, about the same age as Stefan Persson when he left London to take over the CEO position from his father."

"At the end of March 1998, the news comes that Stefan Persson is stepping down as CEO. Instead, he becomes a "working chairman of the board". The word "working" is a deliberate signal that he does not intend to spend his time playing golf. Stefan Persson wants to continue leading H&M."

"H&M's staff, with Michael Lemner at the forefront, work hard to finalize everything for the opening in Paris. And the premiere in Paris is a success. But it also marks Stefan Persson's last major public appearance as CEO of H&M."

"There are many meetings now. Stefan Persson has taken the time to commute between several boardrooms outside of H&M for a couple of years. He cannot say no when the Wallenberg family calls and gives him a seat on the board of the appliance company Electrolux, where Jacob Wallenberg, among others, sits. Wallenberg has been a leading industrial family for a long time, and there is a lot to learn from that experience. The family controls a dozen Swedish large corporations the size of H&M, such as Ericsson, Electrolux, and Saab, but without serving as CEOs. Typically, they govern as board members instead."

"The US launch has given the company’s staff a boost in confidence. Less than a week later, the first store in Spain opens. Over the following years, Stefan Persson cuts ribbons at new H&M stores in countries including Poland, Portugal, and the Czech Republic. H&M now sells more than five hundred garments per minute worldwide. And Stefan Persson has fulfilled his promise of reaching America."

""This issue with child labor and poor working conditions definitely exists in these developing countries. And we need to ensure that our demands are complied with. And we do that by increasing the number of inspectors," he tells TV4 and emphasizes that H&M is conducting development work in the countries: "I still think that trading with these developing countries is the best foreign aid you can give," says Stefan Persson.[82](private://read/01jas9tvg84jycb27616w1f9k8/#note-82)"

"– I was quite proud, because we had achieved a good result. And then Stefan Persson comes down, and he just says: "Fantastic result, but now you must move on." We were always supposed to grow. Market reports were forbidden, organizational charts and the like – they didn't exist. It was always about comparing ourselves to ourselves. It was very results-oriented."

"By stepping down as CEO, Stefan Persson hopes to be less in the spotlight himself. In practice, he is still the one who completely controls his growing corporate empire. In the media, Fabian Månsson is even called Stefan Persson's puppet."

"The older man at the short end of the table clears his throat and adjusts his square-rimmed steel glasses. A striped shirt is glimpsed under a simple black sweater. Nothing suggests that Ingvar Kamprad has built one of the most well-known companies in the Western world, Ikea. When the murmuring among the comparatively casually dressed board members—shirts but no ties—subsides, he continues in a serious tone: "On the agenda today are some important matters regarding the establishment in Russia." Stefan Persson listens attentively. He has been elected to the board of Ingka Holding BV, one of the most important companies in the Ikea sphere, located in Holland. Now he gets to sit at the same table as the world-famous Småland native. Later, he talks about it in an interview: “It was a privilege to be on Ikea’s board. Hopefully, I also contributed something. It is obviously a company I admire a lot.”[95](private://read/01jas9tvg84jycb27616w1f9k8/#note-95)"

"Quietly, Stefan Persson has instead begun to adjust one of the most important parameters in the labor-intensive fashion giant – corporate culture. Something that will have major impacts."

"In the fall of 2001, one could guess which direction Stefan Persson chooses. He buys the entire Åhléns department store and later also the land on which it is located, for a total of 1.3 billion kronor. The property was initially about to be sold to Ikea, as real estate agent Per Asplund later tells Fastighetsvärlden: "Everything was ready, but the deal was canceled after Ingvar Kamprad himself said no. He did not want to be associated with having bought a large and expensive property in central Stockholm."[97](private://read/01jas9tvg84jycb27616w1f9k8/#note-97) Thus, it is Stefan Persson who makes the move. Now he is in a new industry. It's not a deal he trumpets, and the acquisition of Åhléns receives little attention despite the property housing Sweden's largest department store. This makes him want more."

"In his youth, Stefan Persson was sent to England to prove his initiative. To test Karl-Johan's abilities, Stefan Persson has tasked him with creating a new brand. COS is described by H&M themselves as clothes that are "made to be worn across seasons and blend high quality with timeless design, clean silhouettes, innovative techniques, and functional details inspired by art, technology, and architecture."[112](private://read/01jas9tvg84jycb27616w1f9k8/#note-112) The first COS store was inaugurated in London on March 16, 2007. "At that time, we got to test entrepreneurship, to create something completely new even though we had the financial strength of H&M behind us. We faced small problems every day and also some big ones," Karl-Johan Persson recounted a few years later.[113](private://read/01jas9tvg84jycb27616w1f9k8/#note-113) As is well known, most new companies do not survive very long. Perhaps it is to secure his son's project that Stefan Persson buys the fashion company FaBric Scandinavien AB for half a billion kronor. In the purchase, he acquires the established brands Weekday, Monki, and Cheap Monday, which become part of the H&M group. COS survives the test. Karl-Johan Persson is ready for bigger assignments."

"In the media, Stefan Persson has previously said that his wealth is tied up in a fictitious value in the form of H&M shares that do not give him money in his own pocket, other than a dividend, which he has mentioned is relatively low compared to the shares’ value of about 60 billion. H&M’s profits are soaring and the establishments in country after country are going brilliantly. But keeping everything in H&M shares can be risky – like putting all your eggs in one basket. He has sold shares for two billion and can invest in something other than the clothing chain."

"This simultaneously benefits the family's industries in terms of innovations and skills supply. The motto is to act without being seen. Is this something Stefan Persson should be inspired by?"

""No one should take away Stefan Persson's significance for the company's success over the last decades, but father Erling's spirit has always hovered over the operations," writes Private Affairs. They conclude the article with "Long live Hennes & Mauritz," as if a king had left this earthly life.[99](private://read/01jas9tvg84jycb27616w1f9k8/#note-99)"

"The criticism against the Christmas campaign, which is called sexist, just grows. Ahead of the Christmas shopping season in 1993, Stefan Persson responds by letting the model Marcus Schenkenberg pose in H&M's underwear, which somewhat silences the critics. But the next model who adorns the street corners in Sweden's cities causes more uproar than ever before. Stefan Persson has chosen Playboy model Anna Nicole Smith."

"In February 2009, it is then announced that Stefan Persson appoints his son Karl-Johan as CEO. His "strong and winning character" is emphasized at the press conference. The son is serious and has good leadership qualities, is a true competitor who plays tennis, golf, and skis, explains Stefan Persson. As a child, Karl-Johan gave his all on the tennis court, especially in the deciding sets where he slammed hard and won. Time and again."

"Stefan Persson has not chosen to reduce purchases from poor countries, on the contrary, he has bought even more.[125](private://read/01jas9tvg84jycb27616w1f9k8/#note-125) Now, through subcontractors, he employs a million seamstresses in Asia.[126](private://read/01jas9tvg84jycb27616w1f9k8/#note-126) In report after report, Stefan Persson has convinced the world that the company uses its size and influence to positively affect social development in these countries and that H&M contributes to improved conditions for many people. "Through our presence, we contribute to improvements in these societies," for example, it states in H&M's annual report 2011.[127](private://read/01jas9tvg84jycb27616w1f9k8/#note-127)"

"Why then do both Stefan Persson and Karl-Johan Persson repeatedly respond as if the alternative to decent conditions for the workers is to not be there at all? Serious critics who actually believe that H&M should stop trading with the third world are conspicuously absent. The demands they make are that H&M should ensure that there is a better working environment and higher wages where H&M's clothes are sewn up and that the UN declaration of human rights should be fulfilled."

"The dress she is wearing is powder gray with a gold medallion pattern, features a one-shoulder design, and has a long train. It is a dress that makes headlines in the fashion press where the celebrated guests’ choice of dresses is scrutinized closely. It is the first time the Crown Princess wears a dress from H&M at a Nobel party.[200](private://read/01jas9tvg84jycb27616w1f9k8/#note-200) Supermodels in the 1990s, world celebrities in the 2000s and now Sweden's future head of state - how has Stefan Persson succeeded in getting royalty to wear H&M clothes? As H&M's business successes have grown, so has Stefan Persson’s reputation among the country’s economic and political elite. But he has made a special effort to create good relations with the royal house, both privately and in business."

"Stefan Persson has expressed in several interviews that fashion is not his strongest suit. "I don't know much about sizes. Or fashion at all," he already said in his first own interview before becoming the CEO.[192](private://read/01jas9tvg84jycb27616w1f9k8/#note-192)"

"Already in one of his first interviews before he was to take over as CEO, Stefan Persson declared that the USA was the target. This despite the fact that his father had the opposite opinion. "I'm sure we would fit in America," Stefan Persson confidently tells Damernas Värld in 1981.[83](private://read/01jas9tvg84jycb27616w1f9k8/#note-83) At the turn of the millennium, the time is finally ripe. In tough competition with, among others, clothing giant GAP, with the brand Old Navy that every other college student already wears, H&M is now set to break through."

"At the time of his appointment as CEO, H&M had established itself as a distinct budget option in the fashion industry, which sometimes becomes a bit embarrassing for someone with Stefan Persson's circle in Djursholm. At this time, H&M's mail order customers, for example, could order "a batch of Italian fashion shoes with minor beauty defects". Stefan Persson also wants to sell finer clothes, not just the cheapest ones. In 1973, Hennes & Mauritz had attempted to buy BeKå, the largest and most prestigious department store in southern Sweden.[30](private://read/01jas9tvg84jycb27616w1f9k8/notes.html#note-30)"

"When Stefan Persson arrives at work at H&M's headquarters in Salénhuset near Norrmalmstorg in central Stockholm, many employees are already there – buyers, economists, and assistants. He quietly greets those he meets in the office landscape. His father's rustic desk remains in the CEO's office as well as a porcelain donkey that his father, for some reason, had taken a liking to.[29](private://read/01jas9tvg84jycb27616w1f9k8/notes.html#note-29) Stefan Persson settles into the soft office chair. In 1982, he is 35 years old and CEO of a rapidly growing clothing company, with competitors constantly breathing down his neck. Advice and tips he can always get from Erling, who has an office in the neighboring building so as not to "get in the way" of Stefan Persson. At the same time, the young CEO realizes that he must manage on his own, build his own alliances, and a group of confidants."

"In April 1969, Stefan Persson is discharged. He still does not know what he will do with his life, but there is a great expectation on him from his father. There is a possibility that he will be asked to take over what his father has built up. But Erling Persson, in turn, had as a young man chosen not to take over his father's delicatessen shop in Västerås. He had gone his own way. "Previously, I was waiting for a click in my head when I would suddenly become an adult and understand how everything was," Stefan Persson himself would later say.[24](private://read/01jas9tvg84jycb27616w1f9k8/notes.html#note-24)"