Two sons of the world’s richest man are set to join the Succession-style scramble to replace him as chief of one of the world’s biggest companies.
Fashion tycoon Bernard Arnault, the head of French multinational conglomerate LVHM, is expected to nominate Alexandre, 31, and Frédéric, 29, to the board of the company, further cementing the hold the family’s next generation has over it.
The move is being keenly watched for signs pointing to who 74-year-old Bernard will ultimately choose as his successor, a race that already involves two of his older heirs from his first marriage: Delphine, 48, and Antoine, 46.
The addition of the brothers, sons of Bernard’s second wife Hélène Mercier, would further open up the succession race at LVHM, which houses luxury brands such as Louis Vuitton, Christian Dior and Tiffany & Co. under its vast canopy.
While there have long been suggestions that Delphine is Bernard’s favourite, Alexandre and Frédéric have both shown great, early ambition.
Arnault’s eldest son Antoine, who is married to Russian model Natalia Vodianova, has long been assumed to be the frontrunner. However, he is said to be less driven than his half-brothers, although he currently holds the family’s stake in LVHM.
There is also a fifth sibling, 25-year-old Jean, who if his older brothers were to be voted onto the board would become the only sibling not to have a seat.
Two sons of the world’s richest man are set to join the Succession-style scramble to replace him as chief of one of the world’s biggest companies. Pictured: Alexandre Arnault (left) poses for a photo with Hollywood superstar Florence Pugh and his wife Geraldine Guyot (right)
Fashion tycoon Bernard Arnault, the head of French multinational conglomerate LVHM, is expected to nominate Alexandre, 31, and Frédéric (seen left), 29, to the board of the company, further cementing the hold the family’s next generation has over it
In recent years, rumours have been circling in Paris over whether it would be Delphine (pictured centre with half-brothers Frederic and Jean) who would take the reins
News that Alexandre and Frédéric would be put forward was first reported by French outlet La Lettre, who cited people familiar with the decision, and has fuelled fresh speculation over who will take over from Bernard when he steps away.
The report also came ahead of LVHM publishing its annual results on Thursday, which could be a platform for a formal announcement.
In April 2023, LVHM – Europe’s second largest company – became the first on the continent to surpass a valuation of $500 billion amid a three-year boom in the luxury goods market during and following the coronavirus pandemic.
Any board nominations will have to be voted through by shareholders in April at the company’s annual meeting. That shouldn’t be too much of a roadblock, however.
The Arnault family owns more than 48 percent of LVHM’s shares, and holds about 64 percent of the voting rights, according to the Financial Times.
All five of the children already work in various parts of the sprawling business empire, with each being closely scrutinised by their father for how they operate.
Alexandre is known publicly for enjoying the company of glamorous A-List celebrities, with Beyonce and Jay-Z even attending his wedding in 2021.
But he started his career at LVHM young by helping to guide the takeover of the Rimowa luggage chain, which the company bought in 2017.
Arnault’s eldest son Antoine, who is married to Russian model Natalia Vodianova (pictured together on Monday), has long been assumed to be the frontrunner. However, he is said to be less driven than his half-brothers, although he currently holds the family’s stake in LVHM
What makes this Succession-style story so intriguing – as with the fictional story of the wealthy and back-stabbing Roy family who are jockeying for power of their father’s media dynasty – is that all five children from Arnault’s two marriages are employed in the family business
The 31-year-old now heads up products and communication at Tiffany & Co.
Third in line to the LVHM throne, Alexandre is said to have a greater appetite for the business than his older half-brother Antoine – who wants to pave his own way – and is reportedly viewed as the most charismatic and well-connected.
Frédéric meanwhile, reportedly a gifted tennis player and highly academic, is said to be most similar to his father in terms of personality.
He went into the family business in 2017, and became head of strategy and digital director at watch brand Tag Heuer, before taking over as Chief Executive in 2020.
Earlier this month, he was promoted to the head of LVHM’s watch division, overseeing Tag Heuer, as well as its Hublot and Zenith luxury watch brands.
Their early ambition and promising track record has led to some observers predicting the battle for succession will be between these two brothers.
Nevertheless, the family have insisted that succession is not in their thoughts.
Speaking to the Financial Times, Frédéric said ‘succession is not a topic we think about today. It will come in due time. And he’s [Bernard] a master of timing.’
However, there are signs that the question over who will replace him is often on Bernard’s mind, with the patriarch himself having spoken about it publicly before.
‘One or more of my children taking over after me will be based on their ability, their talent and their desire, because it must be understood that it is a lifelong commitment,’ he has said in the past.
According to one report, when asked another time which of his children he saw as his possible successor, Arnault told his friend over a luncheon near the Champs-Elysees: ‘Well I have five’ before his voice tailed off.
While there have long been suggestions that Delphine (pictured left with Rihanna) is her father Bernard’s (right) favourite, Alexandre and Frédéric have both shown great, early ambition
Bernard’s fifth child, 25-year-old Jean (pictured left with model Caroline Daur), who if his older brothers were to be voted onto the board would become the only sibling not to have a seat
According to the Wall Street Journal, he gathers his children once a month for a 90-minute lunch, during which he quizzes them on various pre-prepared topics.
In scenes that could have been plucked from HBO’s drama series Succession, Bernard goes around the table and asks his children questions one-by-one.
Their answers over the gruelling meeting – where Arnault effectively auditions them – will help decide their future, and go towards helping his decision.
Arnault begins every lunch by reading out topics of discussion from his iPad before going around the table and asking each of his children for advice, people close to the billionaire told the US publication.
He will also ask them for their opinions on the company’s managers and what they would do with the company – and whether any of their prestigious brands need a shake-up in management or focus.
Speaking to The Telegraph, HSBC’s Erwan Rambourg says ‘the experience and quality of management of the heirs’ means investors will be happy with any of Bernard’s heirs eventually taking the reins.
‘While Bernard Arnault has not made clear what will come next, you at least know there are many options,’ he added.
In recent years, rumours have been circling in Paris over whether it would be Delphine who would take the reins after she was promoted last year.
The billionaire’s only daughter appeared to edge forward in the race after her father unveiled her as head of Dior, LVMH’s second-largest brand.
Just days after, she was front row at the Dior runway show in Paris, alongside David Beckham, his youngest son Cruz, British actor Eddie Redmayne and his publicist wife Hannah, the Twilight star Robert Pattinson and model Karlie Kloss.
However, it was also suggested at the time that investors ‘do not have a good feel’ for Delphine, while others described her elevation to the head of Dior as a ‘little present from Daddy’.
Bernard Arnault (second-right) is seen with his sons Frederic (second left), Jean (left) at the men’s single’s Final of the 2016 French Tennis Open at Roland Garros on June 5, 2016 in Paris
There are signs that the question over who will replace him is often on Bernard’s mind, with the patriarch himself having spoken about it publicly before
All five of the children are still understood to be in the running, but the decision was pushed back in January 2023 when Bernard (pictured with his wife) raised the retirement age of LVMH’s chief executive to 80, giving himself at least six more years
Just weeks before Delphine’s promotion, Antoine also became the chief executive of the listed company that holds the family’s stake in LVMH.
Now with Alexandre and Frédéric joining the fray, the field is even more open.
Luca Solca, an analyst at Bernstein, told The Telegraph the decision will ultimately be ‘dependent on business performance, in what will be a Darwinian environment.’
All five of the children are still understood to be in the running, but the decision was pushed back in January 2023 when Bernard raised the retirement age of LVMH’s chief executive to 80, giving himself at least six more years.
‘As to succession, you may also have noticed that the retirement age – which is very much in vogue – has been extended,’ Arnault said at the time.
Some observers think the battle for succession is less bitter or intense than that seen in other companies, or depicted in HBO’s succession.
One of Arnault’s friends, businessman Sidney Toledano, said in 2023 that he is confident that all of the billionaire’s children can work through any disagreements because they have been taught to put the interests of the business first.
‘For now, they get on great,’ Toledano said.
People close to the family also said that the children avoid speaking about who is best at certain jobs or sports to avoid any appearance of conflict.
Toledano said Arnault is ‘above all a pragmatic man’. ‘You have to choose whoever is best at a given point in time considering the challenges. It’s what he does with his managers, his advisers, and I think it’s what he’ll do with his children.’
But the hard-working ethic of the Arnault family was drilled into the children from an early age.
Illustrating this, Antoine, at the age of 14, wrote a letter to his younger brother which read: ‘Dear Alexandre, I hope that your birth went well, and that you’re alright. I advise you to start working right away because otherwise…’
Bernard Arnault and wife Helene Mercier-Arnault, centre, with, from left to right, Alexandre, Frédéric, Jean, Delphine and Antoine Arnault
Antoine published this unfinished note on his Instagram account last year.
HSBC’s Rambourg suggests in The Telegraph that a corporate structure could be drawn up that gives each of the five children control of the business, and would stop them from being able to sell their shares without approval from the others.
For now, Bernard still has control, and has until he is 80 to decide.
Until then, Rambourg tells the British newspaper, ‘The best person to replace Bernard over the next four years is likely more of Bernard.’
