EssilorLuxottica's Board and Executives Close Ranks Behind Milleri as Stock Hovers Near Lows

Twenty senior managers signed a memo defending chairman and CEO Francesco Milleri after Leonardo Maria Del Vecchio's public criticism.

Twenty senior managers at EssilorLuxottica have thrown their weight behind chairman and CEO Francesco Milleri, signing an internal memo that pushes back against the public criticism leveled by Leonardo Maria Del Vecchio, son of the group's late founder. Bloomberg reported on the memo Friday, describing a leadership team that has chosen to defend its chief rather than stay silent.

The signatories reject the suggestion that Milleri bears responsibility for the share price decline, casting him instead as the guardian of founder Leonardo Del Vecchio's legacy. Their intervention came after Del Vecchio, who stepped down as chief strategy officer last month, explained his exit by calling Milleri's management style "distant" and "impersonal."

That internal show of support dovetails with the supervisory board's unanimous vote of confidence on Wednesday, which backed Milleri, deputy CEO Paul du Saillant and the wider executive team, along with the company's medium- and long-term strategy. Notably, Milleri has opted not to fill the chief strategy officer role left vacant by Del Vecchio's departure.

A Family Holding With a Capped Voice

Behind the governance clash sits a family matter. Delfin, the Del Vecchio family's holding vehicle, remains the largest single shareholder with roughly 32.4 percent of the capital. Under the company's articles of association, voting rights are capped at 31 percent per shareholder, according to a notice on outstanding voting rights dated August 31.

The board's backing did not emerge in a vacuum. Days earlier, at the Cernobbio forum, Leonardo Maria Del Vecchio had publicly called for a new direction at the eyewear group, pointing out that it had shed more than half its market value in recent months.

For investors, the conflict carries a double sting. The stock closed Friday at EUR 148.10, up 1.2 percent on the day, yet only about two percent above its 52-week low of EUR 144.65 touched in early September. It sits more than half below the EUR 323.70 peak reached last November — a drop of 54 percent from the November 13 high. On a monthly basis, the shares are down 10 percent.

Buyback Signals Long-Term Conviction

EssilorLuxottica had already moved to shore up confidence in late August, launching a buyback program worth more than EUR 800 million that is set to retire up to five million shares from the market. Management framed the move as a signal that it believes in the company's long-term prospects despite the turbulence.

The market has yet to be convinced. The 14-day relative strength index of 31 points to an oversold condition that could invite a technical rebound, but the fundamental uncertainty over the leadership's future is likely to weigh on the shares as long as the dispute between the sitting management and the founder's family remains unresolved.

What Could Break the Stalemate

The single factor that will shape the coming weeks is straightforward: whether the supervisory board stays united behind Milleri, or whether Del Vecchio's critique gains traction within the family and at Delfin. Reuters framed the board's unanimous endorsement as the central burden on the stock — governance, not operating figures, is currently driving the share price. As long as the public airing of grievances between parts of the founding family continues, any fresh statement is likely to move the market more than business results.

Should the board's position prevail and the public criticism fade, the oversold stock could correct quickly. A united front from Milleri and his management, paired with quieter signals from the shareholder camp, might steady investor confidence. The KeplerCheuvreux conference in Paris this autumn would then offer a stage to reinforce the strategy with institutional investors.

The risk runs the other way. Del Vecchio's public move was not an isolated event but a direct challenge to the company's leadership from a member of the controlling shareholder family. If the dispute drags on or spreads to other family members or into Delfin's structure, prolonged uncertainty and further erosion of institutional trust could follow. The shares already trade 9.6 percent below their 50-day average of EUR 163.89, a sign the short-term downtrend remains intact. A slide below the recent 52-week low would entrench the technical weakness and draw in fresh sellers.

One more unknown: Reuters reported on possible stake or partnership options for EssilorLuxottica tied to the succession at Armani. The company declined to comment. Any actual commitment would tie up additional capital at a moment when investors are already demanding strategic clarity.

Until the KeplerCheuvreux Autumn Conference in Paris, where Milleri and his team will have the chance to win over investors directly, the stock remains at the mercy of the family feud. Fundamentals have taken a back seat.