EssilorLuxottica Board Reasserts Confidence in CEO Milleri Following Del Vecchio Heir's Criticism

On Wednesday, EssilorLuxottica, the Franco-Italian eyewear maker, said its board had unanimously reaffirmed full confidence in Chief Executive Francesco Milleri, his management team, and the group's strategy. The endorsement followed criticism from an heir of the family that controls its largest shareholder.

Earlier this week, Leonardo Maria Del Vecchio—son of Leonardo Del Vecchio, the company's late founder—told journalists he hoped EssilorLuxottica would alter its strategy after the company lost more than half its market value in recent months. He also urged that plans be shared more broadly with investors.

Now aged 31, Leonardo Maria Del Vecchio holds a 12.5 percent interest in Delfin, the family holding company that in turn controls a 32.4 percent stake in EssilorLuxottica.

He stepped down at the end of July from his posts as chairman of the Ray-Ban brand and chief strategy officer of EssilorLuxottica, amid reported tensions with Milleri, who also serves as chairman of Delfin.

The relationship between Del Vecchio and Milleri, once considered close, appeared to deteriorate in June when Del Vecchio's attempt to purchase the stakes of two siblings in Delfin failed. He subsequently complained publicly that the holding company's board had not been cooperative.

Separately, reports said Del Vecchio had cautioned that Milleri's reappointment could not be assumed.

According to Delfin's bylaws, the board that determines the holding company's decisions regarding EssilorLuxottica serves without a fixed term. Because changes effectively require unanimous shareholder support, any reform would be difficult to implement.