10-6-2024 (PARIS) In a move that further solidifies the Arnault family’s position at the helm of the world’s largest luxury group, French billionaire Bernard Arnault has appointed his son, Frederic, as the head of one of the family holding companies controlling LVMH. The appointment marks the latest in a series of promotions for the 29-year-old scion within the prestigious luxury conglomerate.
According to a statement released by the company on Thursday (Jun 6), Frederic will assume the role of managing director at Financiere Agache, replacing Nicolas Bazire. The Arnault family holds a substantial 48 percent stake in LVMH’s capital and 64 percent of its voting rights. LVMH, the Paris-listed group, boasts an impressive portfolio of iconic brands, including Louis Vuitton, Dior, and the renowned American jeweler Tiffany.
A graduate of the esteemed Ecole Polytechnique, following in his father’s footsteps, Frederic’s ascent within the luxury empire has been swift. Recently, he was appointed as the chief executive of LVMH Watches after a successful stint as the CEO of Swiss watchmaker TAG Heuer. Alongside his 32-year-old brother Alexandre, Frederic was appointed to the LVMH board in April, joining their older siblings Delphine and Antoine. The company’s shares rose by 1.34 percent on Thursday, propelling LVMH’s market value to an impressive €381.46 billion (US$411.02 billion; S$555.95 billion).
Every move involving the five Arnault children, each holding pivotal roles within LVMH, is closely scrutinized for potential signs of who might one day succeed their 75-year-old father at the helm of the luxury powerhouse. However, Bernard Arnault has insisted that he has no intentions of stepping back anytime soon, and the group recently increased the age limit for the chief executive role at LVMH to 80.
Nevertheless, the French billionaire is meticulously laying the groundwork for a seamless succession by strategically placing his children in key positions – a process that has accelerated since the start of 2023. In a recent reshuffle of his top external managers, Arnault set the stage for a generational handoff among senior executives working alongside the family.
Delphine Arnault, 49, was appointed as the chief executive of Dior, the group’s second-biggest brand by sales after Louis Vuitton, at the beginning of 2023. She also holds a seat on LVMH’s executive committee. Antoine, 47, oversees image and sustainability at the group and was recently named chief executive of Christian Dior SE, another family holding company above LVMH.
Alexandre, a senior executive at Tiffany & Co, which LVMH acquired for approximately US$16 billion (S$21.64 billion) in 2020, and Jean, 25, who runs watchmaking at Louis Vuitton, complete the family’s involvement in the luxury empire.
Outside the family circle, the group’s managing director, Antonio Belloni, 69, stepped down after 23 years as Bernard Arnault’s right-hand man in April. He was replaced by Stephane Bianchi, formerly LVMH’s head of watches and jewelry, who brings extensive experience in family succession from his tenure at French cosmetics group Yves Rocher.
