Kering’s Leadership Overhaul: Luca de Meo’s Playbook to Reboot the Luxury Giant

In September 2025, Kering Group's shareholders gave a near-unanimous vote (98.97%) approving Luca de Meo as the new CEO, marking the first time in 20 years that someone from outside the Pinault family has led the company at this level. He succeeds François-Henri Pinault, who remains Chairman. De Meo is set to officially take over on September 15, with big expectations across the group.

Signing Bonus, Compensation, and Governance Changes Speak Volumes

To secure De Meo’s leadership, Kering approved a substantial compensation package: a €20 million ($22.9M) sign-on bonus, a fixed salary around €2.2 million, with variable income up to €6.6 million, plus performance shares worth 150% of his base+variable salary. Meanwhile, Pinault’s CEO compensation will drop sharply, reflecting the transition.

Shareholders also changed age limits for the executive roles: Chairman and CEO age caps have been raised (to 80 and 70 respectively), enabling more flexibility in leadership transitions.

Strengthening the Balance Sheet: Debt, Brand Restructuring & Valentino Delay

De Meo has made clear where he'll begin to improve Kering's performance: cost cuts, debt reduction, and brand rationalization are priorities. He’s signaled that certain brands may be reorganized or repositioned. One of the first concrete moves: delaying the full acquisition of Valentino, originally expected by 2026-2027, now pushed to 2028-2029.

Valentino is underperforming currently, with revenue off ~2% and EBITDA down ~22%. De Meo’s challenge will be to stabilize brands like Gucci, Saint Laurent, Bottega Veneta and Balenciaga, which have faced creative direction issues and uneven performance in recent years.

What Observers Are Watching: Creative, Operations & Market Reactions

• Creative direction: How Gucci fares under Demna as Creative Director (recently moved from Balenciaga) will be a flashpoint. The new CEO has yet to preview Demna’s work, but many see Gucci’s brand image as the critical lever for group recovery.

• Operational streamlining: De Meo comes from an automotive background where margins, efficiency, and cost controls were central. Although luxury has a different pace, it's clear that he was likely brought in to leverage his previous learnings and push for leaner, more profitable operations.

• Debt burden & investor pressure: Kering’s debt levels, stretched in recent years due to international expansion, acquisitions (like Creed and investment in Valentino), real estate, etc, will be closely watched. Analysts expect some “tough decisions” before year-end. It's to be determined on what those decisions will actually be.

Kering’s Strategic Roadmap: What to Expect in 2026 and Beyond

• Strategic plan delivery: De Meo has pledged to present a detailed strategic plan by Spring 2026. That roadmap is expected to cover brand realism, portfolio pruning, and stronger capital allocation.

• Brand repositioning: Gucci will likely get a lot of the spotlight, with refreshed collections, tighter seasonal discipline, and perhaps more direct strategy vs. experimental drops/collaborations. Meanwhile, Bottega, Balenciaga, and Saint Laurent may also see adjustments, not just to creative, but to their pricing, distribution, outlet strategy, and marketing mix.

• Focus on profits over growth: Expect less aggressive expansion, and instead more focus on profitability. Cost discipline will likely be of key focus, reducing overlap/cannibalization across brands, and possibly scaling back underperforming lines.

• Delay in acquisitions: With Valentino’s full takeover delayed, the group might reassess large M&A moves until overall financial health improves.

Why This Matters for Luxury Lovers

These leadership changes at Kering are more than corporate shuffle. They affect what fashion direction will feel like over the next few seasons, how brands are priced, what kinds of handbags or accessories will be prioritized for production, and what items will eventually hit resale markets.

Luxury buyers should watch for:

• Pre-orders or launches from Gucci, YSL, or Bottega that reflect tighter creative control

• Limited-edition pieces or texture/sequel drops (think textured leather, exotic skins or exotic-embossed leather, and an overall quieter luxury approach)

• Adjustments in pricing in U.S./China as cost pressures shift