PRADA’S FEES: Andrea Guerra is taking on the chief executive officer’s mantle of the Prada Group and details about his salary were released on Friday in a statement confirming the appointment to the Hong Kong Stock Exchange, where the group is publicly listed.
As an executive director of the board, the former Luxottica and LVMH Moët Hennessy Louis Vuitton executive will be paid a fee of 50,000 euros a year, which could be subjected to review.
As per the employment agreement, the executive’s remuneration, including salary, benefits in kind, pension, health care and TFR contributions, will amount to about 151,180 euros a month in the aggregate. He will also be entitled to a discretionary bonus and other incentives.
Prada granted the emoluments in light of Guerra’s “relevant experience and expertise, responsibilities and duties that he will contribute to strengthening and leading the Group’s operations and his executive role,” stated the group.
In case of the termination of Guerra’s employment by either the executive himself or by the company within the first 12 months, there is a reciprocal penalty of 24 months of his salary plus discretionary bonus (if any); if the termination is after 12 months, there is a golden parachute provision which entitles Guerra to receive a severance payment of 12 months of his salary plus discretionary bonus (if any).
Prada also listed the reasons for employing Guerra. In addition to his experience, the objective is “to facilitate the long-term growth and development of the group,” noting that “his services” are seen as “important and essential.”
As reported, Guerra is viewed as someone who can facilitate the transition until Lorenzo Bertelli, Miuccia Prada and Patrizio Bertelli’s son, will become the leader of the group in a few years’ time.
His parents have given up their shared co-CEO title, while remaining executive directors of the board. Miuccia Prada stays on as creative director of Miu Miu and of the Prada brand, the latter with Raf Simons. Patrizio Bertelli is expected to be named chairman this spring.