The dispute over the more than €40 billion ($46.6 billion) fortune of the late Leonardo Del Vecchio intensified following the departure of one of his heirs from management positions at EssilorLuxottica, the eyewear conglomerate he established. Leonardo Maria Del Vecchio, the founder’s fourth son, stepped down from his roles at the company to concentrate on his family office, LMDV Capital, after failing to resolve a longstanding deadlock within Delfin SaH, the family holding company and largest shareholder of EssilorLuxottica.

This leadership change marks a significant development in a four-year conflict among Del Vecchio’s eight heirs and their advisers regarding the governance, ownership, and strategic direction of Delfin. The internal disagreements have created a governance crisis that extends beyond EssilorLuxottica, affecting parts of Italy’s financial sector. Delfin is not only EssilorLuxottica’s major shareholder but also holds substantial stakes in Banca Monte dei Paschi di Siena SpA, a key player in Italy’s recent wave of banking negotiations, as well as in major financial institutions such as Assicurazioni Generali SpA and Unicredit SpA.

For EssilorLuxottica, the stalemate within its controlling family is proving a distraction amid intensifying competition in the burgeoning market for artificial-intelligence-enhanced smart glasses, where companies like Apple, Google, and Samsung are increasingly active. Analysts note that the protracted governance issues weigh on investor confidence and the company’s share price. Nicolo Nunzia, an equity strategist at Banca Fimint, highlighted that internal conflicts within Delfin have undermined the company’s stock performance over several years, while external pressures from technology rivals have added to market challenges.

EssilorLuxottica shares have fallen approximately 40% year-to-date, reducing the company’s market capitalization to around €75 billion, with the firm accounting for roughly 60% of Delfin’s asset value. In response to the share price decline and Leonardo Maria’s departure, EssilorLuxottica announced a share buyback program on Friday, planning to repurchase up to five million shares with a value exceeding €800 million.

Leonardo Maria’s resignation also underscores a marked shift in his relationship with CEO Francesco Milleri, who was chosen by the elder Del Vecchio to lead both EssilorLuxottica and Delfin. After years of publicly backing Milleri, Leonardo Maria criticized the company’s culture in his resignation letter, citing a sense of increasing detachment. He described a dynamic where managers were celebrated during successes but sidelined during difficult periods, expressing a decline in enthusiasm and corporate cohesion.

While Leonardo Maria relinquished the positions of chief strategist for EssilorLuxottica and president of the Ray-Ban brand, his departure is not expected to cause immediate operational disruption. His role largely focused on marketing initiatives, including high-profile creative partnerships such as with rapper A$AP Rocky. According to a source familiar with the company’s plans, these roles are unlikely to be refilled moving forward.