Bernard Arnault, the 76-year-old chairman and chief executive of luxury giant LVMH, is asking shareholders to change the company’s rules so he can remain in charge until he turns 85. The current age limit for the dual role is 80, having already been raised from 75 in 2022.
Arnault has built LVMH into a European powerhouse spanning champagne (Moët & Chandon), fashion (Louis Vuitton) and watchmaking (TAG Heuer). He also owns the French financial newspaper Les Echos. Under Arnault’s leadership, LVMH shares have climbed more than twentyfold over three decades, although the stock has fallen by around one third in the past two years to €606 amid cooling Chinese demand for luxury goods.
The Paris-listed group has outside shareholders who tend to favour clear succession plans. Speculation over who might eventually succeed Arnault has swirled for years. Although he has not explicitly named an heir, each of his five children has a senior role at LVMH. Delphine, 49, heads Christian Dior; Antoine, 47, is group image and environment director; Alexandre, 32, serves as deputy chief executive of Moët Hennessey; Frederic, 30, recently took charge of the Loro Piana cashmere label after running LVMH Watches; Jean, 26, oversees watch operations at Louis Vuitton. Except for Jean, they all sit on the company’s board. The Arnault family controls 48.6 per cent of the business.
LVMH’s lead independent director is Henri de Castries, the former chief executive of insurance giant AXA. Observers note that shareholders value Arnault’s experience and track record, but are also mindful of the potential pitfalls of long-serving leaders, including health concerns, reluctance to embrace new ideas and a lack of strong internal voices to counter the boss’s plans.
Arnault’s personal fortune is estimated at $179 billion, according to the Bloomberg Billionaire Index. He is perceived to be in robust health and has been known to work 12-hour days, sometimes visiting dozens of LVMH stores in one weekend. A person familiar with the group said: “He’s got no plans to go anywhere any time soon.”
However, LVMH now faces fresh headwinds after President Trump threatened last week to impose 200 per cent tariffs on European wine and cognac, an apparent retaliation against EU plans to tax American whiskey in response to US steel and aluminium tariffs. Such a move could affect LVMH exports of champagne labels Krug, Veuve Clicquot and Moët, as well as Château d’Yquem dessert wines and Hennessy brandy. The threat emerged barely two months after Arnault attended Trump’s inauguration in Washington as a guest of honour.
Warren Buffett, now 94, once wrote to Arnault following the previous age-limit increase to 80, saying he believed it remained too low. Buffett has himself faced ongoing questions about who will take the reins at Berkshire Hathaway. LVMH declined to comment on Arnault’s proposed bylaw changes, but a vote is expected at the company’s annual general meeting in Paris next month.
Read more:
Bernard Arnault looks to extend LVMH leadership until he’s 85
