EssilorLuxottica solves leadership dispute – peace breaks out between France and Italy
EssilorLuxottica, the eyewear giant that was once the world’s pre-eminent lens maker (France’s Essilor) and the world’s biggest frame maker (Italy’s Luxottica) has finally sorted out the leadership dispute that has plagued its short life so far. The difficulties are easy to understand: both companies were titans in their own right, and not used to compromise. When it came time to select a CEO, it is only natural that France and Italy should come to blows. Thankfully, however, that seemingly-intractable situation has now been solved.
EssilorLuxottica’s share price has increased by 8% over the past month
Source: Yahoo Finance
The French and Italian divisions of EssilorLuxottica have been accusing each other of trying to dominate what should have been an equal partnership. As part of the public peace treaty, the two top picks for CEO role (Luxottica’s Francesco Milleri and Essilor’s Laurent Vacherot) will both sit out future leadership talks, making room for new blood at the top. Instead, these two once-prospective CEOs will be tasked with fully integrating the two segments of the business over the next 12 to 24 months.
Leonardo Del Vecchio, the founder of Luxottica and executive chairman (and top shareholder) of EssilorLuxottica, said: “I'm very pleased with this outcome. Today, respecting the equal power and the combination agreement, we have found a solution to better execute such strategic combination.” Del Vecchio’s French counterpart Hubert Sagnieres voiced his agreement. And now, at last, the world’s most powerful eyewear company can start remaking itself, and then, the industry.
Dominion holds EssilorLuxottica in its Global Trends Luxury Fund.
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