Giorgio Armani made meticulous plans for when he would die. Who will inherit the billionaire's wealth without children
The legendary fashion creator Giorgio Armani died on Thursday, at the age of 91. Years ago, he made meticulous plans for the business empire he created. Because he had no children, his wealth will reach other relatives.
Armani was essentially the only shareholder of the business he founded in the 1970s, along with his former life partner, designer Sergio Galeotti. Although he was extremely discreet about his private life, Armani said, in an interview with Vanity Fair, that he had relationships with both women and men. His longest relationship is considered the one with Galeotti, who died in 1985, following a heart attack suffered at the age of 40.
Given that he has no children to teach the business, there have been numerous speculations regarding the long-term future of the Armani Empire and if he manages to keep his identity that his founder has valued so much, given that the fashion world has become dominated by conglomerates.
Armani, with an estimated wealth of Bloomberg at over $ 9 billion, has always defended the independence of his company and has excluded a fusion, especially with French groups such as LVMH or Kering, which over the years have “swallowed” famous Italian brands, such as Gucci.
Relatives close to Giorgio Armani
Among the heirs of Armani will probably include his sister, 3 other members of his family who already work in the company, his long -distance collaborator Pantaleo Dell'Orco, and a charitable organization.
Giorgio Armani has a younger sister, Rosanna (86 years old), two granddaughters, Silvana and Roberta, as well as a nephew, Andrea Camera.
Pantaleo Dell'orco, Armani's right hand for years, is considered to be part of the family. All of them are members of the Board of Directors of the company and, with the exception of Rosanna, works for the Armani group. Silvana and Dell'Orco are heads for design, working closely for decades with Armani, who nicknamed his “Lieutenants of Style”. Roberta is the head of the department for entertainment and relations with the VIPs, while the camera is director for sustainability.
Plans made by Giorgi Armani for his empire
A document dated in 2016, held at a notary from Milan and obtained by the Reuters Agency in 2023, establishes the principles for those who are going to inherit the business, while a separate document detailing other things, such as measures to protect the company's jobs.
The first document explains how Armani's heirs should approach a possible listing on the stock exchange, but forbidding such a move up to 5 years after the death of the King of Fashion. He also excludes any merger with other companies.
As for the Armani brand, the document notes that the future leaders of the company must look for an “essential, modern, elegant and not ostentatious style, carefully to detail and visibility.”
Reuters notes that the document is the product of an extraordinary meeting convened by Armani in 2016 to adopt new rules for the company, which will come into force after its death.
The rules established by the Armani provide for the division of the company's capital into six distinct categories, each with different powers and voting rights. The document was modified in September 2023 to exclude the right to vote for some categories.
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Giorgio Armani created in 2016 a foundation that owns part of the company's social shares, but is going to play an important role in protecting the business he founded with Sergio Galeotti. The purpose of the Foundation is to invest a part of capital in charitable causes and to maintain Armani's influence on the company after passing into being.
The rules of governance of the Foundation, also consulted by the Reuters Agency, demand that it manage Armani shareholder to create value, maintain the number of employees and follow the respect of the company's values.
The rules established by Armani for his heirs also provide for a “cautious approach to purchases, with the sole purpose of developing talents that do not exist for a market, a product or channel.”
They also provide that 50% of the net profit registered by the company should be paid to the shareholders. Regarding a possible listing on the stock exchange, the document stipulates that it will need the majority vote of the directors of the company “after the fifth year following the entry into force”, that is, after the death of Giorgio Armani.
“These founding principles show Armani's desire to transmit and prolong his idea of what a company or business means, there is a desire for eternity,” said Professor Guido Corbetta of Bocconi University.
