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Luxottica's Leonardo Del
Vecchio (l) and Enrico Cavatorta.

MILAN—Following a board meeting here today, Luxottica Group S.p.A. (NYSE: LUX; MTA: LUX), announced the introduction of a new management structure based on a co-CEO model, one focused on Markets and the other dedicated to Corporate Functions.

The company said, “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 ongoing.

Operations, led by Massimo Vian, will temporarily report to Luxottica’s founder and chairman, Leonardo Del Vecchio. An Executive Committee, led by Del Vecchio, 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,” the statement said.

It continued, “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.

For details of Guerra's Exit Agreement, click here.

“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.”

Luxottica, said, “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.”

Del Vecchio said, “I thank Andrea Guerra for the contribution he has made over the years to the growth of Luxottica. At the end of this 10-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.”

A conference call with the financial community is scheduled for later today.

For news from the conference call, click here.