World's Richest LVMH Chairman Launches 'Successor Audition' for Five Children

90-Minute Monthly Lunch Discussions and Meetings... Listening to Management Opinions
Extremely Reluctant to Mention Successors... Multidimensional Evaluation Expected

Competition over the succession of Bernard Arnault, chairman of Louis Vuitton Mo?t Hennessy (LVMH) and the "world's richest person" (74), is intensifying. After extending the retirement age from 75 to 80 last year, it is expected that his five children will continue competing in the "audition" for succession on the front lines of management until Arnault steps down.

Bernard Arnault, Chairman of Louis Vuitton Moet Hennessy (LVMH)
[Photo by Reuters Yonhap News]

The Wall Street Journal (WSJ) reported on the 19th (local time) that "Arnault is auditioning his five children regarding the operation of the 'luxury kingdom' LVMH." The France-based global luxury group LVMH is currently valued at $480 billion (687.3 trillion KRW). Arnault, who leads LVMH, is the world's richest person with assets exceeding 270 trillion KRW.

Arnault has five children in total. All are adults and are in the running as successors of LVMH. Among the five children, the only daughter and eldest child, Delphine Arnault, is 48 years old this year and was appointed CEO of Christian Dior, a core affiliate of LVMH, in January. This has led to evaluations that Delphine is currently in the lead.

However, the other children also hold key roles in LVMH affiliates. The second child and eldest son, Antoine Arnault (46), was appointed vice chairman of the holding company Christian Dior SE in December last year. The third son, Alexandre Arnault (31), is vice president of Tiffany & Co., and the fourth son, Fr?d?ric Arnault (28), is CEO of TAG Heuer. The youngest son, Jean Arnault (24), is also learning the business while managing the watch division at Louis Vuitton.

Delphine Arnault, eldest daughter of Bernard Arnault, chairman of LVMH
[Image source=Reuters Yonhap News]

Bernard Arnault, LVMH Chairman's sons Alexandre (from the left), Antoine, Fr?d?ric [Image source=Reuters Yonhap News]

According to reports, Arnault has lunch for 90 minutes every month with his five children at Louis Vuitton headquarters in Paris, France. It is said that he brings his iPad to this meeting and starts the meal by mentioning pre-prepared discussion topics. These include listening to his children’s opinions on specific executives in the company or asking about the timing of brand reorganizations, seeking their judgments and advice related to the business.

Recently, he has actively sought his children’s advice on issues facing the company. When inflation surged and wealth inequality became a major issue last year, Arnault reportedly visited his eldest son Antoine, who had voiced the need to communicate with the public. At this meeting, Antoine proposed starting an advertisement campaign to inform the public about the amount of taxes LVMH pays annually to the French government and the scale of jobs it creates.

Arnault has long shown great interest in his children’s education. It is said that he personally took charge of the math education of his five young children during breaks in meetings. After his children became adults, he also provided management lessons through executives who had worked with him for decades, such as former Christian Dior CEO Sidney Toledano and former Louis Vuitton CEO Michael Burke.

WSJ reported, "Arnault pairs executives with his children to continuously observe whether they perform well." Former CEO Toledano told WSJ, "After doing so, he asks about the child’s personality and any areas that need correction." In the case of eldest daughter Delphine, she worked with Toledano for 12 years at Dior. When she joined Louis Vuitton in 2013, former CEO Burke was also involved.

Arnault is known for rarely publicly mentioning his successor. Toledano said that Arnault never said his children must be the successors. However, close associates told foreign media that after witnessing a close friend die without naming a successor and the ensuing chaos, Arnault has long believed in the importance of preparing well for succession.

Within the family, it is said that the siblings try to avoid showing conflict with each other. WSJ also reported that Arnault dislikes this so much that even jokes about who is better at tennis or piano are not made in the family atmosphere.