Mainebiz

V O L . X X I X N O. X X V O C T O B E R 3 0 , 2 0 2 3 18 FA M I LY - OW N E D B U S I N E S S A s executive board chairman at L.L.Bean, Shawn Gorman helps lead a company founded in 1912 by his great-grandfather, Leon Leonwood Bean, as a one-man operation after inventing the Maine Hunting Shoe. Today, the Freeport-based manufacturer and seller of clothing, gear and home goods is Maine's largest family-owned business and one of the state's largest private employers, with up to 4,000 people during the peak holiday season. Following the $110 million makeover of corporate headquarters completed earlier this year, L.L.Bean recently embarked on a $50 million-plus transformation of its seven-acre flagship campus. Gorman, who grew up in Exeter, N.H., joined L.L.Bean in 1991 as a marketing analyst, going on to hold leadership positions in marketing, international, ecommerce, partnership marketing and creative. His accomplishments include introducing the company to online and email marketing, integrating brand strategies across channels and leading the company's affinity credit card loyalty program that generates tens of millions in annual revenues. Gorman is a graduate of the University of New Hampshire and executive management programs at the University of Pennsylvania's Wharton School and Northwestern University's Kellogg School of Management. Mainebiz: How does a company like LL Bean balance innovation with preserving tradition? Shawn Gorman: Innovation has been part of our story since 1912, when my great-grandfather came home from one of his many hunting trips with cold, wet feet and set upon creating the Maine Hunting Shoe. More than a century later, we're still focused on improving the performance of our iconic products, while bringing new, innovative ones to market that honor our outdoor heritage and help us to fulfill our purpose of getting more people outside so they can experience the restorative benefits of being outside. MB: What happens when there's a business disagreement among family members? SG: At L.L.Bean, we have a governance structure that provides a framework to ensure that all points of view are heard in a timely and respectful manner. In addition to our board of directors, our governance model includes an owners' council, which is designed to ensure that family consensus is achieved in our business decision-making process. e owners' council forum makes space for dissenting points of view to be heard and considered, with the goal of delivering a reflection of those points of view to the business through the board of directors. MB: What are some of the pluses and pitfalls of having a non-family member leading a family business, and do you envision LL Bean ever going back to a family-member CEO? SG: Since L.L.Bean was founded in 1912, we've always had family members at the helm of the business. As executive chairman, I provide executive oversight and direction for the enterprise, and I work in the business every day. e executive chair role was created in 2015 when we hired Steve Smith, our second non-family president and CEO, to ensure leadership continuity and that L.L.Bean's values, guiding principles and the strategic vision for the company would continue. is structure has helped us to avoid the pitfalls that transitioning from a family to a non-family CEO can create. Counting Steve, L.L.Bean has only had only four CEOs — starting with our founder, L.L. (who ran the company until his passing at the age of 94) and my uncle, Leon Gorman, who served as president and CEO for nearly 40 years after that. Our two most recent CEOs are not family members, although Chris McCormick [who served as president and CEO from 2001-2016] spent 18 years in the business being mentored and groomed by Leon to eventually succeed him. Leon also stayed on as chairman, and then chairman emeritus, until his passing in 2015. Our current structure brings the best of both worlds of family and non-family leadership. As executive chair, with 20-plus years of experience in the business, along with another decade of family leadership experience, I have the luxury of having [Smith], a highly skilled president and CEO, who brings an all-important industry perspective to run the business, alongside a deeply talented executive team that he has developed over the past several years. As for the future, I'm sure we'll continue to have family leaders overseeing the business. MB: How's business this year and what's your outlook for 2024? SG: We have enjoyed a strong first half of the fiscal year as people continue to spend more time outside. We are optimistic this will continue into 2024, and we're constantly adapting and responding to the many macroeconomic challenges as they arise. MB: What are the top-selling products and categories this year? SG: Our iconic products always lead the way — Bean Boots, Boat & Totes, Wicked Good Slippers, Flannel and Fleece — but given the wet summer we've had, we're selling a lot of raincoats and outerwear, too. With colder temps arriving, we anticipate seeing that outerwear trend continue into the holiday and winter seasons. P ROV I D E D P H O T O Boots on the GROUND L.L.Bean's Shawn Gorman sheds light on family, non-family roles at 111-year-old firm B y R e n e e C o r d e s Shawn Gorham is executive board chairman at L.L. Bean, a family-owned firm founded by his great-grandfather in 1912. F O C U S

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