- FashionUnited |
Luxottica, the world’s largest eyewear maker, has announced that they are introducing a new management structure based on a co-CEO model, following the departure of its chief executive officer Andrea Guerra. The company, which designs, manufactures and distributes eyewear for the likes of Chanel and Armani, as well as for its own brands including Ray-Ban and Oakley, will run a co-CEO model in which the two chief executives will each have distinct responsibilities to ensure “stronger management” of the group.
One will be focused on markets and the other dedicated to corporate functions to manage the needs of the group, which has rapidly increased its size, complexity and global presence in recent years. These two units will be complemented by an operations department.
Enrico Cavatorta, current general manager and CFO of the group, has been appointed CEO of corporate functions, as well as being named as interim CEO of markets, pending the appointment of a permanent executive to this position, which is currently on-going. While the operations unit will be overseen by Massimo Vian, a current Luxottica executive, and he will temporarily report to the chairman, Leonardo Del Vecchio.
The new structure means that Guerra is stepping down as chief executive of Luxottica after a 10-year period. He leaves with a severance packaging totally around 11.5 million euros, including a 10 million euro “redundancy incentive”, plus an additional 34 million euros for the shares Guerra holds in the eyewear group, which are to be bought back at 41.50 euros per share.
Luxottica chief executive Andrea Guerra steps down
Guerra’s exit comes as Del Vecchio, founder of Luxottica returned to the frontline of the group, after he felt that the company required more than one CEO, which Guerra disagreed with. Del Vecchio will now head up the executive committee made up of the co-CEOS, which the group states has been created to “support the efficient management of the Group during this new phase”.
The aim of the new structure is to support the next phase of development for Luxottica that it claims is consistent with its strategic vision, while allowing it to take advantage of opportunities in a competitive global market of growing complexity and changing competitive dynamics.
“I thank Andrea Guerra for the contribution he has made over the years to the growth of Luxottica,” said Del Vecchio. “At the end of this ten-year journey, the Company is now ready to face up to a new chapter in its history thanks to a management team of great strength and experience.”
Vecchio added: “This new phase starting today will see the Group retain its strong focus on sales and profitability, and ensure it is ready to seize opportunities and face the challenges of the market.”