Bernard Arnault nominates 2 more of his sons to LVMH board, strengthening control over family

Bernard Arnault nominates 2 more of his sons to LVMH board, strengthening control over family

Bernard Arnault, head of the LVMH Moët Hennessy Louis Vuitton luxury goods empire, announced on Thursday that he has nominated two more of his children to sit on the company board, in a move to consolidate his family’s control over Europe’s most valuable group. There is one step.

That appointments are subject to approval by the 15-person plankEssentially locking in four of Mr. Arnault’s five children as the company’s chief decision makers, carrying out a succession strategy that Mr. Arnault, France’s richest man, has described as a way to expand LVMH’s legacy into the next generation. Have been carefully mapped over the years.

Mr Arnault, 74, made the announcement while sharing LVMH’s 2023 financial results. Sales for the year rose 9 percent to 86.2 billion euros, or $94 billion, despite an economic slowdown in the company’s biggest markets Europe, the United States and China. Net profit rose 8 percent to €15.2 billion – a record for the company.

“Our performance in 2023 reflects the extraordinary appeal of our brands and their ability to generate desire despite a year impacted by economic and geopolitical challenges,” Mr Arnault said. Sales of clothing and leather goods as well as perfumes, cosmetics, watches and jewelery increased.

mr arnault nominated Alexandre Arnault, 31, who is executive vice president of product and communications at Tiffany & Co., and Frédéric Arnault, 29, the chief executive of Tag Heuer. They will join two older siblings: Delphine, 48, who is also chairman and chief executive of Christian Dior Couture, and Antoine, 46, who runs several LVMH brands and is in charge of the group’s image and sustainability efforts. The youngest brother, Jean, 25, is watch director of Louis Vuitton.

“As I have always said, LVMH is a family-run group,” Mr. Arnault said in a statement. He added that the two brothers would “each bring interesting perspectives.”

Over three decades, Mr Arnault has built LVMH into the world’s largest luxury group and France’s most valuable company. Its brands – 75 of them – are stars of the luxury world and include Louis Vuitton, Christian Dior, Tiffany and Dom Pérignon Champagne.

Mr Arnault has long worked to ensure that the group – which he built by acquiring European luxury brands that had been weakened by the families who owned them – would remain firmly in the hands of his own family. He persuaded the board to raise the mandatory retirement age for the chief executive and chairman from 75 to 80 in 2022, and created a corporate structure that ensured that his own children – each of whom have executive roles at the company – Will remain on top. Decision maker.

Such moves have heightened speculation of competition between the siblings over who will one day succeed their father. Mr. Arnault rejected such talk in an interview with The New York Times last summer, saying: “The best person inside the family or outside the family should, one day, be my successor. But it’s not something that I expect will be a duel for the foreseeable future.”

In 2022, Forbes named Mr Arnault the world’s richest man, a position he lost when LVMH’s share price fell nearly 20 percent amid weak growth in demand for luxury goods. Now he holds the title of the second richest person in the world. according to forbesConceived by Elon Musk.

Last year, LVMH was also overtaken as Europe’s most valuable company by Denmark’s Novo Nordisk, the pharmaceutical firm that makes Ozempic and Vegovy, popular drugs used for weight loss.

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