Bernard Arnault, CEO and Chairman of Louis Vuitton (LVMH) and the world’s richest man, is claimed to see his five children once a month over lunch and hold auditions to determine who is capable of heading his luxury enterprise. The lunch is being held in the private dining room of the offices of LVMH Moet Hennessy Louis Vuitton SE.
According to the Wall Street Journal, the luncheon lasts 90 minutes and begins with the French billionaire reading the topics that will be discussed during the meeting from his iPad. During the private meeting, Arnault discusses his luxury business empire’s business strategies with his children.
Wall Street Journal also stated that the 74-year-old billionaire then travels around the table, asking his five adult children for business advice. According to the report, Arnault asks the opinion of youngsters on individual managers who have been appointed at the company or whether it is time for a shake-up at one of the many companies owned by LVMH.
The Importance of Succession Planning in the luxury industry
During this process, the children audition for Arnault so that he can determine who will eventually succeed him and take over the luxury empire. However, the billionaire has offered no indication as to who will be crowned next, since he adheres to his concept of selecting his successor only on merit.
The Wall Street Journal reported that the regular gatherings are part of a long-term strategy to teach his children how to operate the business after his passing.
As per the Bloomberg Billionaires Index, Arnault surpassed Tesla CEO Elon Musk to become the world’s wealthiest person last year. According to the index, his total worth as of April 19 was $208 billion.
Arnault owns roughly half of the main luxury brand corporations. The billionaire bought a majority interest in LVMH in 1989. Among the many premium brands in the company’s portfolio are Louis Vuitton, Bulgari, Tiffany, Sephora, TAG Heuer, and Dom Perignon champagne.
The rise of Arnault’s children in the LVMH empire
Arnault’s children have already been appointed to key roles inside the organization. Delphine, the eldest of his five children, rose to the helm of the empire’s second-largest brand, Christian Dior. According to the site, her brother, Antoine, has been assigned the job of overseeing the holding corporation that handles the family fortunes of Arnault and LVMH.
Alexandre Arnault works as an executive at Tiffany, whereas Frederic Arnault is the CEO of TAG Heuer. Meanwhile, Jean Arnault, the youngest of five children, has been in charge of marketing and product development for Louis Vuitton’s watch department.