The family feud over the $65 billion Ray-Ban fortune

The family feud over the $65 billion Ray-Ban fortune escalated further as one of the late Leonardo Del Vecchio's heirs stepped down from key management roles at the eyewear company he founded. Leonardo Maria Del Vecchio, the 31-year-old fourth son of the late industrialist, announced his abrupt exit from positions at EssilorLuxottica SA, the parent company of Ray-Ban, Oakley, and Oliver Peoples. His decision, made public last week, marks another blow to the long-standing family dispute over control of Delfin Sarl, the dominant shareholder in the Italian-based company. The conflict, now in its fourth year, continues to disrupt the operations of a major player in the global eyewear industry. Leonardo Maria had attempted, without success, to resolve the deadlock within the family firm. With eight heirs and numerous advisors involved, the governance of Delfin Sarl has become a complex and contentious issue. The company holds significant stakes in several major Italian institutions, including Banca Monte dei Paschi di Siena SpA, one of Italy’s largest lenders, and Assicurazioni Generali SpA, a leading European insurer. It also maintains an investment in Unicredit SpA, adding to the broader implications of the family’s internal struggles. For EssilorLuxottica, the ongoing family disputes have created operational challenges. The company is striving to maintain its leadership in the emerging market for artificial-intelligence-powered smart glasses, developed in collaboration with Meta. However, growing competition from tech giants such as Apple, Google, and Samsung threatens its position. Analysts have noted that the internal strife within Delfin has affected investor confidence, contributing to a steep decline in EssilorLuxottica’s stock price. This year alone, the company’s shares have dropped by approximately 40 percent, reducing its market value to around €75 billion ($121 billion). According to Bloomberg data, EssilorLuxottica accounts for roughly 60 percent of Delfin’s total assets. In response to the share price slump and the recent departure of Leonardo Maria, the company announced plans to repurchase up to 5 million shares, worth more than €800 million at current valuations. While these measures aim to stabilize the company’s financial standing, they come amid continued uncertainty surrounding the future direction of the business. Leonardo Maria’s exit also signals a shift in his relationship with Francesco Milleri, the longtime CEO of both EssilorLuxottica and Delfin. Once a staunch supporter of Milleri, Leonardo Maria used his resignation letter to criticize the evolving corporate culture. He described a workplace where success was celebrated but discomfort was met with indifference. “The sense of belonging isn’t what it used to be,” he wrote. “The distance is felt.” These remarks reflect a deeper disillusionment with the leadership style that once aligned him with the company’s vision. Although Leonardo Maria’s departure may not immediately affect day-to-day operations, given his primary role in marketing initiatives such as the hiring of rapper A$AP Rocky as a creative director for Ray-Ban, the move underscores growing tensions within the organization. Industry insiders suggest that the company is unlikely to replace his roles promptly, leaving a void in strategic oversight. This lack of continuity raises concerns about how effectively EssilorLuxottica can navigate the competitive landscape while managing the fallout from the family feud. As the situation unfolds, the broader implications extend beyond the eyewear sector. The unresolved governance issues at Delfin continue to influence Italy’s financial sector, particularly given its substantial holdings in key institutions. The outcome of this prolonged family battle will likely shape not only the future of EssilorLuxottica but also the stability of some of Italy’s most prominent financial entities.