GOOGLE INC MILAN (Reuters) - Luxottica (>> Luxottica Group SpA) Chairman Leonardo Del Vecchio on Monday took over management of the company he founded half a century ago after the world's biggest eyewear maker by sales lost its second chief executive in as many months.
The maker of Ray-Ban and Oakley sunglasses announced on Sunday that CEO Enrico Cavatorta was quitting only six weeks after the sudden departure of predecessor Andrea Guerra, who was credited with turning Luxottica into a global player during his 10-year tenure.
Cavatorta and Roger Abravanel, a board member, resigned on Monday due to disagreements over the current governance structure, the company said.
Del Vecchio will take on corporate responsibilities until the group recruits a chief executive to oversee markets. It will then name Chief Operations Officer Massimo Vian as co-CEO.
Luxottica switched to a dual chief executive model following Guerra's exit in a management overhaul that saw Del Vecchio take on a more prominent role after 10 years out of the limelight.
Del Vecchio, 79, said last month that Guerra had opposed his plans to get more involved in the running of the company he controls via a 61 percent stake.
Cavatorta, chief financial officer at Luxottica since 1999, resigned after a make-or-break meeting with Del Vecchio on Sunday failed to reconcile growing differences between the two, a person familiar with the matter said.
"Mr Cavatorta's resignation leaves us concerned about Luxottica's future and the majority shareholder's real intention regarding management independence," a Deutsche Bank note said.
Shares in Luxottica lost 9 percent on Monday with traded volumes seven times the last month's daily average. In a reassuring message to investors, Luxottica said net profit was expected to have risen around 10 percent in the third quarter.
The company said on Sunday it would take the necessary time to find the co-CEO to be charged with markets. But analysts say recent events may make hiring high-profile candidates more difficult.
CONFIDENCE SHAKEN
Investors had seen Cavatorta's appointment as a guarantee of stability and hoped that Luxottica would continue on the path that has helped it more than double sales under Guerra to 7.3 billion euros (5.78 billion pounds).
They look with concern at the departure of two well-respected managers in just over a month.
Roberto Lottici, a fund manager at Italy's Banca Ifigest, bought shares in Luxottica in August when they dipped in a first reaction to Guerra's reported exit. He has since sold his holding at a profit and plans to stay on the sidelines.
"Even if it fell further there is too little visibility on what lies ahead," he said.
"Managerial continuity is weakening so one starts to wonder about strategies and how the company sees its future. I'm going to wait until they communicate more clearly with the market."
Del Vecchio first set Luxottica on an international path by acquiring Ray-Ban in 1999. Its global reach grew further under Guerra who bought Californian brand Oakley in 2007 and recently struck a deal with Google (>> Google Inc) to develop the Internet-connected Google glasses.
The latest events have tarnished the image of Del Vecchio as an enlightened entrepreneur who had been able to hand over control of his company to an experienced outside manager.
Del Vecchio, who has prided himself on keeping his family out of his businesses, said last month that family considerations had played a key role in his decision to sack Guerra.
With six children from three wives, the billionaire businessman has yet to spell out to the markets a clear succession plan. After remarrying his second wife, he is now on his fourth marriage.
Del Vecchio controls Luxottica through holding company Delfin. A reorganisation at Delfin would try to further distance the holding company from the management of the companies it owns, Del Vecchio said in a statement on Sunday.
(Additional reporting by Stephen Jewkes; editing by Clara Ferreira Marques, Keith Weir and Cynthia Osterman)
By Valentina Za
