Bernard Arnault will remain head of LVMH for the next 10 years

Bernard Arnault is someone who has built an empire with his work. It's only natural that he doesn't want to hand it over to others. Recently, it was revealed that the French mega-billionaire, founder and CEO of LVMH, announced his intention to extend his leadership of the company for another decade. At 76 years old, Arnault has shown no signs of wanting to retire and is pushing for a resolution to extend the age limit to remain CEO of LVMH until he turns 85. This proposal will be discussed at the upcoming annual general meeting (AGM) set for April 17, where shareholders will vote on the proposal. This is not the first time that Arnault has "adjusted" the company’s statutes to raise the age limit – over the years, the great industrial captain has kept his role while gradually promoting his five children, moving them up the ranks of the group and, we assume, testing them increasingly with progressively more important roles. However, he has still not named a successor – a race to the throne where the two leading candidates seem to be the older children, Delphine and Antoine. Arnault's desire to stay at the helm of LVMH until he is 85 comes at a challenging time for the luxury industry, which is facing an increasingly complex and volatile global landscape. His decision to request an extension of the age limit for his leadership highlights his confidence in the future of the group and his personal commitment to ensuring that the empire he has built remains standing for decades to come.

The recent reshuffling of LVMH's leadership confirms Arnault's plan to elevate his children from within and involve them in business operations – and that's why LVMH recently announced a series of key changes in its leadership. Starting June 10, Damien Bertrand will become Vice CEO of Louis Vuitton, working alongside the current CEO, Pietro Beccari. This appointment further strengthens the group's future leadership, preparing the next generation of leaders. At the same time, Frédéric Arnault will become CEO of Loro Piana, solidifying his role as a leader within the LVMH network. On April 15, Pierre-Emmanuel Angeloglou will become Vice CEO of Dior, working alongside Delphine Arnault, CEO of the maison. The appointments also concern the expansion of the group's fashion divisions, indicating that the fashion division is at the center of LVMH's future strategy. Arnault has maintained a positive outlook on the prospects of the luxury industry. Despite the challenges, LVMH's results for 2024 have been robust, and the group still seems unshakable, although Arnault himself has acknowledged the potential risks for the luxury industry, particularly in the face of growing geopolitical instability, inflation, and changes in consumer behavior. Arnault has also compared the business-friendly environment in the United States, which remains a crucial market for LVMH, to the more complex situation in France, where he has criticized various economic policies seen as less favorable to large businesses. It is no coincidence that, amidst US tariffs, the collapse of luxury in China, and his friendship with Trump – even though stock market instability has wiped out five billion dollars from LVMH's equity portfolio since the new president took office.

However the empire grows, it seems clear that it will remain a family empire. Arnault has often described LVMH as a family business, and under his leadership, the group has increasingly been shaped by the involvement of his children. The Arnault family holds complete control over LVMH, with its holding company owning 49% of LVMH's equity and 64.8% of the voting rights. This gives them unparalleled influence over the strategic direction of the company. In recent years, Arnault's children have taken on key roles within the company, preparing the ground for a future family leadership. In 2023, LVMH's shareholders approved the appointment of Bernard Arnault's children, Alexandre and Frédéric Arnault, to the board of directors, marking a further strengthening of the family's presence in the leadership of the company. Bernard's daughter, Delphine Arnault, heads Christian Dior Couture as CEO, while Antoine Arnault, Bernard's eldest son, manages communication, image, and environmental strategy for LVMH. Alexandre Arnault is currently the Vice CEO of Moët Hennessy, the wine and spirits division, while Frédéric Arnault is CEO of LVMH Watches but will soon become CEO of Loro Piana, moving ever closer to the center of power in the company. Meanwhile, Jean Arnault, the youngest son, heads Louis Vuitton's watch division, one of the brand's most important product categories. A strategy that strengthens this family dynamic (the holding company that owns the family's shares is subject to a clause that prevents the siblings from selling or transferring shares until 2052) and highlights how Arnault, to paraphrase Breaking Bad, is not in the luxury business but in the empire business.