As LVMH prepares to announce its annual results, a growing section of shareholders is voicing unease over an issue that has lingered for years but is now gaining urgency: who will eventually succeed Bernard Arnault at the helm of the world’s largest luxury group.
Arnault, 76, has led LVMH for nearly four decades and continues to oversee a sprawling $350 billion empire that includes more than 70 brands such as Louis Vuitton, Dior, and Tiffany. While all five of his children hold senior roles across the group, the chairman and chief executive has not named a successor, nor has he outlined a public transition plan. Last year, LVMH extended the age limit for its combined CEO and chair role to 85, reinforcing the perception that Arnault intends to stay firmly in control.
Several institutional investors say the absence of clarity has started to weigh on confidence. Fund managers at firms including Deutsche Bank’s DWS and Edmond de Rothschild describe succession planning at LVMH as opaque, warning that prolonged uncertainty could translate into a governance discount on the stock. Some investors argue that what was once a distant concern has become a material risk as the group’s scale and complexity continue to grow.
Arnault has played down the issue in public comments, suggesting it is not an immediate priority. LVMH, for its part, maintains that succession plans exist for both long-term continuity and unexpected events, though it does not disclose details.
Corporate filings from a 2022 restructuring offer limited insight. Control of the Arnault family holding structure is set to pass to a vehicle equally owned by his five children, with major decisions requiring a majority. Governance experts note that such arrangements can invite internal friction, particularly in large second-generation family businesses.
For now, markets remain focused less on who might take over and more on the fact that no roadmap has been shared. As Arnault continues to delay the conversation, investors say the question is no longer hypothetical but increasingly central to LVMH’s long-term narrative.
