The family that controls Italian shoe company Salvatore Ferragamo uses family policies to protect the dynasty,
the
Financial Times
noted
in an interview with second-generation chairman Ferruccio Ferragamo, 69.
The company generated revenues of €1.3 billion last year and has 620 stores worldwide, the
FT
article noted. A third of its shares are listed on the Milan stock exchange. The company is majority owned by more than 70 descendants of the founder, the article said.
A holding company owned by the second-generation siblings holds 56% of the shares in the listed company. The siblings can’t sell their shares in the holding company, but all family members may sell their shares in the listed company, the
FT
report noted.
Salvatore Ferragamo died suddenly and prematurely in 1960, leaving a 38-year-old wife, Wanda Miletti, and six children whose ages ranged from 17 to two, the
FT
article said. At the time of Salvatore’s death, the company was making only 80 pairs of shoes a day. The business now includes clothing and accessories such as handbags, scarves and ties.
Ferruccio Ferragamo told the
FT
that his mother was “a second pioneer.” At her insistence, all family members are paid the same and own the same percentage of shares, the
FT
article said.
Only a maximum of three third-generation family are allowed to work in the company, and only if they have the right qualifications, the report noted.
A non-family member, Michele Norsa, was hired as CEO in 2006 to launch the IPO, the
FT
article said.
Bankers say Ferragamo could be a takeover target when the third generation gains control, despite the second generation’s efforts, the
FT
article said.
James Ferragamo, one of Ferruccio Ferragamo’s twin sons, “is tipped to lead the family’s third generation into senior management,” the article said. (Source:
Financial Times
, July 28, 2014.)
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