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LVMH: The Disrupted Timing of Antoine Arnault's Appointment to the Executive Committee

The announcement of Antoine Arnault's entry into LVMH's executive committee, initially scheduled for early January, has been postponed by one month. This decision is part of a broader restructuring of the group's governance, allowing Bernard Arnault to validate his eldest son's role as moderator among his siblings, while avoiding the creation of new family tensions.

A Carefully Orchestrated Transition

Antoine Arnault's nomination to the executive committee was to be formalized in early January, as we reported in our Glitz newsletter on December 9. However, the press release was postponed to a later date, coinciding with the annual results published this Tuesday, January 27. The entry into the operational control tower of the group by the eldest Arnault son, currently director of image and environment for the family empire, will now occur more gradually.

This promotion will be diluted within a larger organizational reshuffle including three or four other internal movements within the luxury group. Among these nominations is that of Véronique Courtois, current CEO of Parfums Christian Dior, to head the beauty division, as well as the transfer of Stéphane Rinderknech, who had held this position for three years, to other functions.

Family Diplomacy

These precautions reflect the diplomatic puzzle that Bernard Arnault has faced for four years, each time he considers promoting one of his children. Even though it's easier to justify placing his daughter Delphine Arnault at the head of Christian Dior Couture in late 2022, Antoine Arnault's arrival at the executive committee does not delight the three other children of pianist Hélène Mercier, Bernard Arnault's second wife.

Frédéric Arnault, CEO of Loro Piana, and Alexandre Arnault, deputy CEO of Moët Hennessy, are indirectly questioning their father about this sudden appointment, given that their own responsibilities haven't evolved. The youngest, Jean Arnault, CEO of Louis Vuitton's watch division, has leveraged his position to request a seat on the board of directors. He is the only one of the five children not to sit on it, with his father citing his young age (28 years). A sign of the internal atmosphere: Antoine Arnault even suspects his brothers of being behind the leaks revealing his future nomination in order to better torpedo it.

No Designated Successor

Currently, none of these heirs can claim a strong track record. At 50, Delphine Arnault is criticized for her management and results at Dior. Alexandre Arnault (33) is struggling to revive Moët Hennessy in the footsteps of Jean-Jacques Guiony. His younger brother Frédéric Arnault (30) is still trying to defend his modest record at Tag Heuer, rather than focusing on Loro Piana's strong performance before his arrival.

Antoine Arnault (48) hasn't exactly shined at the head of Berluti for eleven years either. The group had nevertheless developed the shoe brand through millions in investment, financing the expansion of its store network. The younger son's mission for the past six years, serving LVMH's image and CSR, is appreciated by Bernard Arnault, particularly his role as unifier established before receiving the Legion of Honor in December, and illustrated by the acquisition of Paris FC football club to bring the brothers closer together. Two good reasons, in the patriarch's eyes, to involve him more closely in the group's operational strategy in the coming days.