Bernard Arnault is a French business tycoon in control of LVMH, one of the largest luxury goods companies in the world, with control of over 60 luxury brands, including Louis Vuitton, Christian Dior, Givenchy and Celine. With his son running shoemaker Berluti and his daughter acting as the executive vice president of Louis Vuitton, many are beginning to speculate who will be taking over the company.
According to a recent article on The Business of Fashion, Arnault hasn’t signaled he’s tiring of running the world’s largest luxury-goods company, but “at some point there is an element of succession that needs to take place,” said Berenberg analyst John Guy. Giving his children greater responsibility allows Arnault to test them, Guy said.
Arnault’s way of testing his children? Pitting members of his family against one another. Arnault, who controls 46.5 percent of the voting rights in LVMH, has said he expects a relative to replace him. With three younger children, a nephew and a niece, he has other potential successors, as well as non-family executives inside and outside LVMH. “At least one of them will show themselves capable of taking over,” Arnault said of his kin in a documentary aired in February on France 5 television.
Often times, when a succession seems imminent, stress will begin to rise, causing people within the family to make decisions they might not make otherwise. Knowing family members’ individual strengths is imperative along with finding out who is good with issues such as maintaining a vision for the future, handling accounts and motivating employees.
ReGENERATION Partners specializes in the type of planning that will keep families and their business running for many years. From succession planning to conflict management and everything in between, ReGENERATION Partners is committed to helping family business find success and harmony. For more information, contact us today!
