Kering SA Shakes Up Leadership: CEO Pinault Steps Down, Ex-Renault Chief Takes Helm
François-Henri Pinault is stepping down as CEO of Kering SA while remaining chairman. Luca de Meo, former Renault executive, will take over as CEO on September 15. Kering faces challenges with declining sales and profits, particularly in its flagship brands like Gucci. The company's stock has fallen sharply, and activist investors have been pushing for change. Shareholders will vote on de Meo's €20 million sign-on bonus and governance changes. The Pinault family retains significant control with a 42% stake and 59% voting rights.
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Luxury powerhouse Kering SA is set for a significant leadership transition as François-Henri Pinault, who has steered the company for two decades, announces his decision to step down as CEO while retaining his position as chairman. The move comes as the company faces considerable challenges in the luxury market.
New Leadership at the Helm
Luca de Meo, a seasoned automotive executive credited with turning around Renault SA, has been tapped to take over as CEO of Kering SA effective September 15. This appointment brings fresh perspective to the luxury group, potentially injecting new strategies to address the company's recent struggles.
Challenges Facing Kering
Kering has been grappling with declining sales and profits, with its flagship brands including Gucci, Balenciaga, and Yves Saint Laurent facing headwinds in the competitive luxury market. The company's heavy reliance on Gucci, which generates over half of Kering's profit, has been a point of concern for investors and analysts alike.
Market Performance and Shareholder Pressure
The leadership change comes against a backdrop of significant market challenges:
- Kering's stock has seen a sharp decline, with the company's value and the Pinault family wealth reportedly falling by about two-thirds from their 2021 highs.
- Activist investor Bluebell Capital Partners had been pushing for Pinault to step back from the CEO role, highlighting the pressure on the company to make changes.
Ownership and Governance
The Pinault family maintains a strong hold on Kering, with:
- Approximately 42% stake in the company
- 59% of voting rights
Shareholders will be asked to vote on several key issues:
- De Meo's €20.00 million sign-on bonus
- Governance changes, including raising age limits for leadership positions
Family Succession and Future Outlook
The transition has sparked discussions about potential third-generation family succession within Kering. In a move that may signal future plans, three grandchildren of founder François Pinault have recently been added to company boards.
As Kering navigates this significant leadership change, all eyes will be on Luca de Meo to see if he can replicate his success at Renault and steer the luxury group back to growth. The challenges are substantial, but with fresh leadership and the continued involvement of the Pinault family, Kering aims to reposition itself in the ever-evolving luxury market landscape.
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