MILAN ─ Franco-Italian eyewear maker EssilorLuxottica on Wednesday said its board had unanimously reaffirmed its full confidence in Chief Executive Francesco Milleri, his management team and the group’s strategy, after criticism from a member of the family behind its largest shareholder.
Earlier this week, Leonardo Maria Del Vecchio, son of the company’s late founder Leonardo Del Vecchio, told journalists he hoped for a change in EssilorLuxottica’s strategy after it lost more than half of its market value in recent months, calling for plans to be shared more broadly with investors.
Leonardo Maria Del Vecchio, 31, owns a 12.5-percent stake in Delfin, the family holding company that in turn controls 32.4 percent of EssilorLuxottica.
He stepped down at the end of July as chairman of the Ray-Ban brand and as EssilorLuxottica’s chief strategy officer, amid reported tensions with Milleri, who also serves as chairman of Delfin.
Relations between Del Vecchio and Milleri, long considered close, appeared to deteriorate in June after Del Vecchio failed in an attempt to acquire the stakes of two siblings in Delfin and complained publicly that the holding company’s board had not been cooperative.
Leonardo Maria Del Vecchio also reportedly said that Milleri’s reappointment should not be taken for granted.
Delfin’s decisions regarding EssilorLuxottica are determined by its board, whose mandate has no fixed term under the holding company’s bylaws. Changes effectively require unanimous shareholder support, making reforms difficult to achieve.
