Delphine, Eldest Daughter of Chairman Arnaud, Becomes Head of Dior

Having Held Key Positions at LVMH... Part of Succession Process

[Asia Economy Reporter Yujin Cho] Bernard Arnault, chairman of LVMH, the largest company by market capitalization on the European stock market, has appointed his eldest daughter Delphine Arnault as the CEO of Christian Dior during a major executive reshuffle at key affiliates.

On the 11th (local time), major foreign media reported that Arnault promoted Delphine to CEO of Dior in the personnel announcement made that day.

Foreign media interpreted this appointment of Delphine to a key position as part of the succession process aimed at strengthening family management control.

[Image source=AFP Yonhap News]

In this reshuffle, Michael Burke, known as Arnault's "right-hand man," stepped down as CEO of Louis Vuitton and remained as an advisor. Pietro Beccari, who had been leading Dior, moved to become the new CEO of Louis Vuitton.

Delphine worked alongside Burke at Louis Vuitton for 10 years and has also served at Dior for 12 years.

On the day the personnel announcement was made, LVMH shares listed on the Paris Stock Exchange closed at 772.30 euros, up 2.12% from the previous session, marking an all-time high. LVMH's stock price has surged more than 84% compared to the end of 2019, just before the COVID-19 outbreak (based on the closing price that day).

The sharp rise in stock price increased the market capitalization to 392.1 billion euros (approximately 525 trillion won), and Arnault's net worth reached 182 billion dollars (according to the Bloomberg Billionaires Index), surpassing Tesla CEO Elon Musk (132 billion dollars) to hold the title of the world's richest person.

Thomas Chauvet, an analyst at investment bank Citibank, evaluated the rise in LVMH's stock price by saying, "The succession plans for key positions have played a decisive role in the success of LVMH's core brands over the past 20 years."