Luxottica Group S.p.A., which owns the Oakley and Ray-Ban sunglasses brands and Sun Glass Hut, parted ways with CEO Andrea Guerra Monday and unveiled a new management structure based on a co-CEO mode. Under the new model, one CEO focuses on Markets and the other is dedicated to Corporate Functions.
The evolution to a co-CEO leadership structure with distinct and complementary responsibilities will ensure stronger management of the Group, which has rapidly increased its size, complexity and global presence in recent years.
Enrico Cavatorta, current general manager and CFO of the Group, was appointed CEO of corporate functions. He was also named as Interim CEO of Markets, pending the appointment of a permanent executive to this position. The search process for a CEO of Markets is on-going. Operations, led by Massimo Vian, will temporarily report to the Chairman, Leonardo Del Vecchio.
An Executive Committee, led by the Chairman, will be created to support the efficient management of the Group during this new phase.
The appointment of Enrico Cavatorta ensures the promotion of internal managerial excellence and provides the necessary strategic continuity. At the same time, the forthcoming appointment of an external co-CEO will introduce fresh energy and expertise in an important phase of evolution for the Group.
Following a period of debate with Chairman Leonardo Del Vecchio over the Group’s future strategy and direction, Andrea Guerra leaves as Group CEO after a 10-year period of organizational consolidation and managerial growth. Having displayed great energy, passion and professionalism, he has contributed to strengthening the presence of the Group and its brands in the market, with excellent results achieved.
This new organizational structure will support a new phase of development for Luxottica that is consistent with its strategic vision and will allow it to take advantage of opportunities in a competitive global market of growing complexity and changing competitive dynamics. This will enable the Group to benefit from the structural growth drivers in the eyewear industry and better oversee its long-term development with renewed vigor and expertise, be it through traditional channels (wholesale and retail) or via more innovative channels.
In full continuity with the existing strategy, the Group confirms its strategic priorities to guarantee sustainable long-term growth, with increased focus on return on investment and on further improving efficiency.
Leonardo Del Vecchio, Chairman of the Board and the original inspiration behind the strategic vision of the Group, will ensure a smooth organizational transition, overseeing the Board and supporting further success.
“I thank Andrea Guerra for the contribution he has made over the years to the growth of Luxottica.” Leonardo Del Vecchio comments “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. 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.”
Luxottica said it and Guerra parted ways Monday after the Italian optics company agreed to pay him a $10 million bonus in addition to severance pay laid out in her 2004 employment contract. Guerra will also be paid €800,000 for signing a 24 month no compete agreement and keep his performance shares granted under the company’s bonus plan as long as he does not breach the agreements.
In addition, in the event there are any criminal proceedings based on facts related to the exercise of functions held by Andrea Guerra and in the interests of the company, the legal costs incurred by him at all judicial levels shall be borne by Luxottica Group S.p.A., provided that the attorney chosen by Andrea Guerra is previously approved by the company.
