LVMH Chairman: "No Need to Pass Company to My Children... Capable Outsiders Are Possible"

Bernard Arnault, Chairman, Reveals in NYT Interview
"Company Collapses if Children Inherit Easily"
Invests in Management Training and Education from Childhood
"Not Immediately Securing Successor"... Extended Own Retirement Last Year

Bernard Arnault (74), chairman of Louis Vuitton Moet Hennessy (LVMH), known as the world's top luxury empire, said, "There is no law that I must pass the company on to my children, nor is it necessary." The succession competition among his five children, who have been receiving management training, is expected to become even more complicated.

Bernard Arnault, Chairman of Louis Vuitton Moet Hennessy (LVMH)
[Photo by Reuters Yonhap News]

In an interview with The New York Times (NYT) published on the 14th (local time), Arnault said, "Not only within my family but also from outside, the most outstanding person will become my successor." Arnault once surpassed Elon Musk, CEO of Tesla, to become the world's richest billionaire.

Arnault introduced that during his upbringing in Roubaix, an industrial city in northern France, he witnessed many companies collapse after being passed down to children. He said, "Companies collapsed after one or two generations because children inherited them too easily," adding, "I did not want my children to party. I made my children work."

In fact, Arnault's five children are receiving management training at LVMH. The eldest daughter, Delphine Arnault (48), serves as CEO of Christian Dior. Since taking the CEO position of Dior, a core affiliate of LVMH, in January, she has been regarded as a frontrunner in the succession competition.

Eldest daughter Delphine Arnault, CEO of Christian Dior
[Image source=Reuters Yonhap News]

The second child and eldest son, Antoine Arnault (46), was appointed vice chairman of the holding company Christian Dior SE in December last year. The third son, Alexandre Arnault (31), is vice president of Tiffany & Co., and the fourth son, Fr?d?ric Arnault (28), is CEO of TAG Heuer. The youngest son, Jean Arnault (24), is also learning the business by managing the watch division at Louis Vuitton.

Their management training began in childhood. Alexandre said to close associates that it started at the breakfast table when he was nine years old, and the eldest, Delphine, used to visit Dior stores with their father at age ten. Delphine began selling Dior perfumes at 17. The NYT reported that Arnault has spent over 30 years inspecting LVMH properties in Paris on weekends with his children.

Alexander Arnaud, the third and Vice President of Tiffany & Co. (front row, far left), Antoine Arnaud, the second and Vice Chairman of Christian Dior SE, and Fr?d?ric Arnaud, the fourth and CEO of TAG Heuer
[Image source=Reuters Yonhap News]

The interview included not only Arnault but also his five children, who answered together. Alexandre recalled to the NYT, "I remember when I was seven thinking, 'Why does Dad do this? Why does he ask the same questions to the sales staff every Saturday?'"

Arnault has shown great interest in his children's education, not only in management training but also personally taking charge of their math education whenever he had time between meetings. Antoine recalled that not getting a perfect score on an important exam was unacceptable.

Arnault calls his five children to the LVMH headquarters every month for a 90-minute lunch. At this gathering, he asks for their opinions on various business issues. The youngest, Jean, said, "We offer various opinions and have discussions, but ultimately, the decision is made by our father."

Youngest son Jang Arno
[Photo by Reuters]

Despite these efforts, the children explained that Arnault never forced them to work at LVMH. The fourth son, Fr?d?ric, said, "Nevertheless, Father seemed to know how to make us want to dedicate our lives to the family business like he did."

The eldest, Delphine, revealed that the five siblings have now started discussing how to raise their own children, just as they learned from their father.

Regarding the timing of selecting a successor, Arnault drew a line, saying, "I don't think it will happen soon." Last year, he persuaded the LVMH board to extend the chairman's retirement age from 75 to 80. He emphasized that his goal is not profit but that "we must still be at the top even 50 years from now."

This content was produced with the assistance of AI translation services.