Arnault suggests new LVMH board of directors 2024
In an effort to position his sons to one day head the opulent company he founded, French billionaire Bernard Arnault intends to name two of his sons as directors of the board of LVMH Moet Hennessy Louis Vuitton SE.
Arnault from LVMH will nominate his sons Alexandre and Frédéric to the board of directors
According to someone with access to the situation, Arnault may nominate his sons Frédéric, 29, and Alexandre, 31, this week, corroborated by a report from the website La Lettre.
“As I have always said, LVMH is a family-run group,” Mr. Arnault said in a statement. He said the two brothers “will each bring interesting perspectives.”
The company’s annual general meeting in April would then have the opportunity to vote on the board nominations. An LVMH representative declined to comment.
The appointments would demonstrate the family’s unwavering control over LVMH. Approximately 64% of the voting rights and 48% of the shares of LVMH are owned by Arnault and his family.
According to the Bloomberg Billionaires Index, Arnault, 74, is the third wealthiest person in the world, having amassed a fortune of roughly $161 billion. He has been preparing his kids for various positions within the company as he creates a succession plan.
All five of Arnault’s children are employed by the company. The 48 years old Delphine is the CEO of Christian Dior Couture, the fashion brand that ranks second in the group behind Louis Vuitton. She is the only Arnault child serving on the executive committee of LVMH at the moment.
Antoine Arnault, 46, is in charge of LVMH’s communications and image. He also serves as non-executive chairman of the company’s cashmere specialty brand Loro Piana. In addition, he serves as CEO and vice chairman of Christian Dior SE, the holding company that the Arnault family uses to own LVMH. Before turning thirty, Delphine and Antoine joined the board.
The three youngest sons of the billionaire founder were born into his second marriage, to Canadian concert pianist Helene Mercier. For the past three years, Frédéric has been in charge of the group’s watch division, which encompasses brands like Hublot, Tag Heuer, and Zenith, while Alexandre has been in charge of product and communications at Tiffany & Co. The 25 years old Jean is in charge of expanding Louis Vuitton’s watch line.
Arnault raised the age requirement for his CEO position to 80 in 2022. Sidney Toledano, 72, a close aide to the french group, announced last week that he will be leaving the executive committee.
“Succession is not a topic we think about today. It will come in due time. And he’s a master of timing,” Frédéric told in an interview.
The luxury market is readjusting to more normal growth rates following a three-year boom during the coronavirus pandemic as lockdown savers spent on handbags, so the changes come at a sensitive time.
One of the most significant beneficiaries was LVMH, which achieved record profits and sales while expanding Louis Vuitton to become the first luxury brand in the world with yearly sales of over €10 billion.
Since last year, however, China’s recovery from the severe Covid lockdowns has taken longer than some had anticipated, and the cost of living pressures on the middle classes in the US and Europe have stifled appetite.
Large luxury group shares have dropped from record highs since the spring of last year as investors have doubted future growth. Even though sales increased by 10% in the first nine months of last year, LVMH’s shares have dropped more than 22% over the last six months, leaving the company’s market value at €330.8 billion.
Conclusion: The french luxury group LVMH is nominating new board directors and Arnault suggested his two sons, Frédéric and Alexandre.
Read more:
JEAN PAUL GAULTIER COLLECTION BY SIMONE ROCHA
CHIARA FERRAGNI SCANDAL: CHARITY RULES CHANGE IN ITALY 2024
NEWSLETTER
Vuoi ricevere Mam-e direttamente nella tua casella di posta? Iscriviti alla Newsletter, ti manderemo un’email a settimana con il meglio del nostro Magazine.
