Bernard Arnault, the 76-year-old chairman and chief executive of luxury conglomerate LVMH, is seeking shareholder approval to extend his tenure at the company until the age of 85. The current age limit for the dual role is 80, having already been raised from 75 in 2022.
Arnault has transformed LVMH into a European luxury powerhouse, overseeing brands such as Moët & Chandon, Louis Vuitton, and TAG Heuer. He also owns the French financial newspaper Les Echos. Under his leadership, LVMH’s stock has surged more than twentyfold over three decades, though it has declined by about a third in the past two years, currently sitting at €606, amid weakening Chinese demand for luxury goods.
Succession Questions Loom
While Arnault has not officially named a successor, speculation about his eventual replacement has persisted for years. Each of his five children holds a senior role within LVMH, reinforcing the idea that leadership may remain within the family. Delphine Arnault, 49, leads Christian Dior, while Antoine, 47, serves as group image and environment director. Alexandre, 32, is deputy CEO of Moët Hennessy, Frederic, 30, recently took over the Loro Piana cashmere brand, and Jean, 26, manages watch operations at Louis Vuitton. All but Jean currently sit on LVMH’s board. The Arnault family maintains control over 48.6% of the company.
Despite shareholder appreciation for Arnault’s leadership, concerns persist about long-serving executives, including potential resistance to change and the absence of strong internal voices to challenge strategic decisions. Henri de Castries, LVMH’s lead independent director and former AXA chief executive, is expected to play a key role in assessing shareholder sentiment ahead of the vote.
Trade War Threats and Market Challenges
LVMH now faces external pressures, particularly from potential U.S. tariffs on European wines and spirits. Last week, former U.S. President Donald Trump threatened a 200% tariff on products such as cognac and champagne, retaliating against EU plans to tax American whiskey in response to U.S. steel and aluminum tariffs. Such measures could significantly impact LVMH’s exports of Krug, Veuve Clicquot, Moët & Chandon, and Hennessy brandy.
The threat comes just months after Arnault attended Trump’s inauguration in Washington as a guest of honor, highlighting the complex relationship between LVMH’s global business and shifting geopolitical policies.
Shareholder Vote Approaches
Arnault, whose personal fortune is estimated at $179 billion according to the Bloomberg Billionaire Index, remains in good health and continues to work 12-hour days, frequently visiting multiple LVMH stores in a single weekend. A source close to the company stated, “He has no plans to go anywhere anytime soon.”
The proposed bylaw change will be put to a vote at LVMH’s annual general meeting in Paris next month. While LVMH has declined to comment on the matter, the decision could determine whether Arnault remains at the helm for nearly another decade.
