Bernard Arnault Secures Control of LVMH for the Next 30 Years
Solidifying succession plans for the next generation.
French billionaire Bernard Arnault has officially secured the line of succession for his LVMH empire for the next three decades. The transition to his children leading the LVMH Group was expected to occur upon the passing of the most senior Arnault. The plans have now been kicked into gear by his youngest son Jean Arnault turning 25.
In a recent report from Italy’s 11 Sole 24 Ore newspaper via Fashion United, the transition has now shifted to control to a limited partnership called Financière Agache. In this limited partnership structure, the company features general partners, management authority and limited partners with economic rights. Children of Bernard’s late sister, Ludovic and Stéphanie Watine would hold the economic prerogative, however, the ultimate control lies with the Agache Commandité, the general partner.
Arnault has divided Agache Commandité amongst all five of his children. For the next 30 years, the children are prohibited from selling any shares, which has in turn ensured long-time family control from the Arnault family. At 74, Bernard is still the director of the company and has unlimited power until he reaches 95. The luxury company recently reported a 10% growth in the past nine months. It houses an abundance of family-founded luxury brands that have long kept family at the top to lead its business. Outsiders often find it difficult to penetrate leadership positions since the company often values the emotional familial history.
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