MILAN: Luxottica Chief Executive Andrea Guerra stepped down as expected on Monday after falling out with the Italian eyewear group's founder and chairman, Leonardo del Vecchio, and will be replaced by a trio of top managers.
In a statement Luxottica said the company would be headed by two CEOs, one of them being Enrico Cavatorta, the current general manager and chief financial officer.
He will be flanked by a second chief executive in charge of markets, who is in the process of being recruited externally. The trio will be completed by Massimo Vian, in charge of operations.
The management overhaul also envisages the return to a more active role for Del Vecchio, who is 79 and has a 61 percent stake in the group.
He will lead an executive committee to support management. Guerra, 49, had been at the helm of Luxottica since 2004 and was widely credited with helping turn the maker of Ray-Ban and Persol sunglasses, which recently signed a deal to design and distribute Google Glass, into the world leader by revenue.
Under Guerra, sales at Luxottica more than doubled to 7.3 billion euros, pushing its stock market value to more than 19 billion euros.
Rumours he was leaving after disagreements with Del Vecchio surfaced two weeks ago, and Luxottica said then the two had been debating the group's future strategy for some time.
"Unfortunately our ideas on future projects differed. I have some projects, he had other projects. Clearly we did not share the same view," Del Vecchio told journalists on Monday.
"Instead of one boss we will have three the company will continue to be what it has always been, we hope in a solid growth of at least 7 percent per year," he said.
In a separate statement, Luxottica said Guerra would receive 11.4 million euros on top of the regular severance pay. Cavatorta, 53, has been the group's CFO since 1999 when he arrived from scooter maker Piaggio.
He also became Luxottica's general manager in 2011 and is widely regarded as a competent executive with a deep knowledge of the group.
"He knows the company inside out, he knows the people who work there, he's 'plug and play'," said Berenberg analyst Bassel Choughari.
Investors see Del Vecchio's involvement as a guarantee of a smooth transition after the sudden departure of one of Italy's best-respected top managers.
"The market has confidence in Luxottica's strategy and in Del Vecchio. He's always been aware of what was going on, even when Guerra was in charge," said an analyst who asked not to be named.
The issue of Del Vecchio's succession, though, remains unaddressed. Some analysts see this as a potential problem longer term should the current arrangement be more than a stop gap solution.
"Once Del Vecchio sees that things work out in the triumvirate he will likely take a step back," a source close to the matter said.
"Over the longer-term a greater involvement of his eldest son is not to be ruled out," the source said.
Claudio Del Vecchio, 57, one of Del Vecchio's six children, is currently chief executive of Brooks Brothers and non-executive board member at Luxottica.
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