Louis Vuitton owner LVMH shareholders are pressing for clearer succession planning at the luxury conglomerate, as questions over Bernard Arnault’s future unsettle some investors.
According to Reuters, the 76-year-old CEO and chairman has yet to designate an heir.
Arnault has run the group for nearly four decades and oversees more than 70 brands, including Dior and Tiffany.
Last April, investors supported a proposal to lift the age cap on his dual role to 85, though the decision attracted notable resistance.
Several shareholders told Reuters the unresolved leadership question was increasingly viewed as a vulnerability.
Asset manager Baillie Gifford abstained from the vote over what it described as insufficient disclosure while Allianz GI opposed the resolution outright.
Arnault has said the matter is not a priority, and LVMH told Reuters that succession planning for senior executives is confidential, adding that its arrangements address both medium-term needs and unexpected situations.
The company stated that such plans “aren’t public, but obviously they do exist”.
Regulatory documents linked to a 2022 reorganisation of the family holding structure show a new vehicle, Agache Commandite, was established with Arnault’s five children - Delphine, Antoine, Alexandre, Frédéric and Jean - each holding equal stakes.
The entity is set to take control of Agache SCA, which sits at the top of LVMH’s voting chain, once Arnault steps aside.
Corporate filings indicate that, in the absence of specific instructions, decisions would require approval from at least three of the heirs.
While most investors endorsed extending Arnault’s tenure last year, the dissenting votes and recent comments highlight continuing pressure on LVMH to outline how leadership of the group will eventually change hands.
Last week, LVMH’s DFS reached an agreement to divest its travel retail operations in Greater China to China Tourism Group Duty Free (CTG Duty-Free).
Under the deal, DFS will divest its stores and certain regional brand rights.
CTG Duty-Free will assume control of the company’s travel retail locations in Hong Kong and Macau, together with the associated intangible assets.
