The family of Bernard Arnault, chairman of Moët Hennessy Louis Vuitton (LVMH), has increased its stake in the company, further strengthening its control of the world’s largest luxury group.
According to reporting by WWD, the Arnault family now holds 50.01 per cent of LVMH’s capital, an increase from 49.77 per cent. Arnault has five children working within the group. Earlier this month, he appointed his eldest son, Antoine, who serves as chairman and CEO of Christian Dior, to LVMH’s executive board.
Additionally, LVMH shareholders recently extended the age limit for the chairman and CEO to 85. Scott Kerr, host of The Luxury Item podcast, stated on social media that this move solidifies Arnault’s control and limits external influence.
“With a majority of the share capital plus dominant voting rights, Arnault can approve dividends, major acquisitions, restructurings, and board appointments without needing support from other large shareholders,” he said.
“Activists or hostile bidders are essentially powerless.”
At age 77, Arnault has not announced any retirement plans and indicated in an interview that succession is not currently his primary focus.
“Talk to me again in 10 years, I can give you a more precise answer,” he said.
“As in every family, at one point, there is a succession but I hope that, unless I get the ball on the head in a tennis court, I will make these 10 years.”
Reuters recently interviewed seven institutional investors, including six LVMH shareholders. All reported being unaware of succession plans, and four cited insufficient transparency as a concern.
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