Orange CEO Convicted for Misuse of Funds, Puts Fate in Hands of Board

The Chairman and Chief Executive Officer of France’s largest telecommunication company Orange, Stephane Richard has been handed a one-year suspended sentence after an appeal court in Paris convicted him of complicity of the misuse of funds.

In a statement, Richard said that he would appeal the verdict of the court, saying that the one-year suspended sentence given to him was very unfair.

Stephane Richard, who was acquitted in an initial trial said that he had placed his company authority in the hands of Orange’s board of directors.

The French Minister of Finance, Bruno Le Maire has frequently said that the position of the government concerning matters like this is that the bosses of companies owned by the state must quit their positions if ever convicted of a crime. A statement made by the finance ministry acknowledged the verdict, saying that the ministry was paying close attention to the appropriate operation of the company.

Orange is due to hold a board meeting where the matter will undoubtedly be discussed, according to a company spokesman. Two different sources who are particularly close to the situation said that Richard – who has denied any offences – will find it difficult to keep his job as the Chairman and CEO of Orange.

Richard also had a 50,000 euro fine slapped on him, but was cleared of the charge of complicity of fraud. He however refused to make any comment when reporters asked whether he would resign as CEO after the verdict was given. He hurriedly left the court, followed by the head of communications at Orange, Béatrice Mandine.

Richard, who is a former civil servant, had previously told French media that he would not be looking to stay as CEO at the end of his third term (each one lasting four years) in May 2022. He however said that he would love to remain as the Chairman.