Di Risio will likely be dismissed at a board meeting in Milan tonight, the people said, declining to be identified because the decision hasn’t been formalized. Donatella Versace, the company’s creative director, was displeased that Di Risio sidestepped her to license a cheaper line designed by someone else, one of the people said.

The CEO was recently unhappy that Donatella’s choice of photographer for an ad campaign was Mario Testino, who charges at least 100,000 euros ($140,000) a day. The people said the family has criticized Di Risio for not reducing new store plans.

The family brought in the former Fendi SpA chief in 2004 to stem losses. He worked closely with Donatella to make the collections less flashy and returned the label to profit, helped by sales of accessories and new booming markets, such as Russia.