Italian fashion icon Giorgio Armani, at 89, maintains a firm grip on his eponymous empire, and his meticulous planning for the company’s future extends to a set of clear rules outlined in a document from 2016. The document, reviewed by Reuters, details the future governing principles for those inheriting the group, emphasizing the commitment to Armani’s sought-after independence. In the absence of direct heirs, Armani’s sister, family members in the business, and collaborator Pantaleo Dell’Orco are expected to play key roles, with the bylaws providing guidelines for a smooth transition. The document outlines the approach to potential stock market listings and M&A activities, with a commitment to maintaining an essential, modern, and elegant style for the Armani brand. Armani’s meticulous planning includes a foundation created in 2016, playing a pivotal role in preserving the business’s values and ensuring a lasting influence. The foundation’s bylaws emphasize managing the shareholding to create value, maintain employment levels, and pursue company values.
Corporate governance experts note that the guidelines in the bylaws should facilitate a relatively smooth transition by minimizing disagreements among heirs. Armani’s dedication to independence is evident in the cautious approach to acquisitions and a commitment to distributing 50% of net profits to shareholders. While the document details the potential for a stock market listing, any such move requires the majority vote of directors after the fifth year following the statute’s entry into force. Armani’s meticulous planning reflects a desire for the company’s principles to endure, emphasizing a sense of eternity. However, the ultimate test of the company’s resilience will lie in its ability to adapt to market changes beyond Armani’s control. Despite his careful consideration, the rules set forth may face challenges if drastic market changes occur. The Armani group declined to comment on the possibility of a mid-term stock market listing.
