After The Alleged Sexual Harassment Model, Guess Boss Remained On The Stock Market And Plunged Nearly 20%.

American cowboy fashion manufacturer Guess Inc. (NYSE:GES) announced today that Paul Marciano, the co-founder of last year's involvement in the "MeToo" campaign, will remain in the group. Investors apparently did not welcome the decision, and Guess Inc. (NYSE:GES) jumped 17.7% on Monday, the biggest intraday drop in the past eight months.

In February last year, the famous American model Kate Upton was the victim of sexual harassment by Paul Marciano. She used to advertise for the Guess brand in 2011. Although Paul Marciano, who was then chairman of the board of directors, denied any wrongdoing on Kate Upton, he withdrew from the group's agenda management, and Guess Inc. set up a special committee to investigate.

In June, the investigation by the special committee said that it was impossible to confirm that Paul Marciano had any improper speech or physical contact. However, he had poor judgement in communicating with models and photographers on some occasions, and agreed to pay $500 thousand and five individuals who made accusations of misconduct to "avoid litigation expenses and admit their guilt and admit mistakes". PaulMarciano then announced his resignation as chairman of the board, and his brother, Maurice Marciano, another co founder, took over.

3 months later, Guess Inc. announced that the board of directors added two female directors - Spanx Inc., former CEO Laurie Ann Goldman, and retail and technology research company Coresight Research, formerly the founder of the Fung Fung & amp; E, to increase the number of independent directors to six.

When the market generally predicted that Paul Marciano would fade away from Guess Inc. while retaining the seat of directors, the group said, "at the request of the board of directors", PaulMarciano agreed to continue to be the chief creative officer with the term of office as he wished.

Meanwhile, CEO Victor Herrero was withdrawn and replaced by former executive Carlos Alberini from February 2nd. Carlos Alberini was president and chief operating officer of Guess Inc. in 2000-2010, and currently serves as chairman and CEO of denim brand Brand Lucky.