|Diane von Furstenberg|
Ms. Furstenberg describes her attraction to Mr. Riva. "When I asked - why do you want to do this?" she inquired. Apparently he responded: "First, because I love you, the person. Second, because the potential of your brand is unbelievable. And third, because you are a private company."
Perhaps the fashion industry is different than most, but proclaiming your love for the founder probably is tricky position to stake out for a successor CEO. The first time he decides to make a change that Diane is not in favor of, the love affair will end.
While I am not in the business of predicting the future, my bet is that this will turn out to be a disastrous succession. Diane selected someone she is comfortable with. The industry is changing drastically and this business will need to undergo some drastic changes. Success will require leaving the past behind. Is Mr. Riva ready?