Gucci Owner’s Fortunes Rest on Heir Letting CEO Do His Job

Billionaire Francois-Henri Pinault’s two-decade-long reign at the helm of Gucci owner Kering SA is ending with the group at one of the lowest points in the family company’s history. A key question for investors is whether he’ll give his successor leeway to clean up the mess.

The 63-year-old luxury heir, who faces shareholders on Tuesday, is relinquishing his chief executive role to outsider Luca de Meo — a former automotive executive with no luxury experience — after coming under increasing pressure from investors. But he’s staying on as chairman and has said he “will be fully involved in the strategic orientation of the group” even as he has pledged to not “step in and short-circuit the new CEO.” De Meo, credited with turning French carmaker Renault SA around, is set to take over on Sept. 15.