Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

EssilorLuxottica shakes up management after power struggle

Published 12/17/2020, 05:59 PM
Updated 12/17/2020, 06:00 PM
© Reuters. Sunglasses from Ray Ban are on display at a optician shop in Hanau near Frankfurt

© Reuters. Sunglasses from Ray Ban are on display at a optician shop in Hanau near Frankfurt

PARIS (Reuters) - Rayban maker EssilorLuxottica said on Thursday it has rejigged an executive power sharing arrangement put in place when the company was created by a merger in 2018, promoting two internal managers to the top executive roles.

The company, formed by a 46 billion euro ($56 billion) union of France's Essilor and Italy's Luxottica, had given itself until the end of 2020 to find a new CEO - a compromise candidate to appease both sides.

The firm had even hired headhunters to find external candidates. It declined to comment on Thursday whether that search was still on.

EssilorLuxottica said French executive vice-chairman Hubert Sagnieres - who under the terms of the merger had been sharing powers with Leonardo Del Vecchio, founder and executive chairman of Luxottica, for the first three years - had decided to relinquish his executive functions.

Del Vecchio would do the same as a result, remaining non-executive chairman, it added.

Francesco Milleri, originally of Luxottica, will become chief executive with Paul du Saillant, of Essilor, stepping up as deputy CEO, the group said, until its shareholder meeting in 2021. It did not specify what would happen at that stage.

The merger of the lens and eyewear maker was seen as a smart strategic move by investors, but the integration of the two firms was plagued by tensions over governance, with both sides trading barbs over who was trying to dominate the company.

Sagnieres said in a statement that governance changes would become "more fluid" with the latest shake-up, adding it would help speed up the group's integration.

© Reuters. Sunglasses from Ray Ban are on display at a optician shop in Hanau near Frankfurt

($1 = 0.8153 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.