An Introduction to Succession In The Spotlight
Following recently published data, the next generation is now anticipating and preparing itself for the so-called ‘Great Wealth Transfer’ of $124 trillion over a mere 25 years. As an advisor to private wealth, succession, more than ever before, has become the primary concern for families and not simply due to HBO’s blockbuster series.
That is not to say that succession has not been front and centre in previous generations. However, never has any ‘new generation’ ever been set to receive such a great transfer of wealth in such a short space of time. Added to this, the ‘transferor’ generation (for want of a better word) has never been so far apart culturally, politically, emotionally and spiritually from its offspring. The pace of change is breathtaking and the separation between generations is stark.
With the old adage that wealth dissipates within three generations, how might business founders and creators of generational wealth tackle and overcome the succession challenges before them in today’s world?
Rather than rummaging through a dusty old library to learn from the past (this not-too-distant past resembling a decaying relic from antiquity), we must learn from the present. We must see how, in real time, prominent and renowned founders of multi-national, family-run or owned businesses are able to tame the beast of change and overcome the issues of the day to protect their legacy. Naturally, we are relying on publicly available information and do not know the reality of any individual or family behind closed doors. We recognise that the plans we intend to put in the spotlight may not be the most relatable, given that they mostly address billionaires. They are, however, public and often dramatic and so make for interesting reading.
With this, welcome to our article series called ‘Succession in the Spotlight’. In this series, we explore what well-known business founders are saying and doing to ensure both legacy and leadership in an ever-changing landscape.
Today, it’s Bernard Arnault in the spotlight.
Bernard Arnault – Fashioning the Future
When one of the world’s wealthiest person speaks, people listen. Ever more so when it comes to the topic of succession.
Bernard Arnault, the Chairman and CEO of LVMH Moët Hennessy Louis Vuitton, has built the world’s most powerful luxury empire. So much so that, in their own words, LVMH represents just over 1% of the GDP of France. As of 2025, LVMH is home to over 75 prestigious brands, from Louis Vuitton and Dior to Tiffany & Co and Bulgari. And yet, despite record profits and constant global expansion, Arnault’s most pressing and urgent task is not growth but, yes…succession. This article focuses mostly on the question of leadership and control, as opposed to ownership.
Succession with Style: Five Children, One Vision
Arnault has five children, with all five holding senior roles in the LVMH group:
- Delphine Arnault is CEO of Dior.
- Antoine Arnault chairs Christian Dior SE and oversees image and communications at LVMH.
- Alexandre Arnault is EVP at Tiffany & Co.
- Frédéric Arnault leads TAG Heuer.
- Jean Arnault heads marketing and product development at Louis Vuitton watches.
As it apparent, from a leadership perspective, there is no single heir. He has immersed his children within the wider group and instilled in them a sense of individual responsibility to serve the collective. With each component its own empire and brands as famous as nation states, Arnault has set in motion a succession strategy as public as one could imagine. In this sense, the world can determine and assess who (perhaps singular or plural) will rise to the top.
Indeed, as Arnault once commented:
“It’s not about appointing the oldest. It’s about choosing the most competent.”
Tailored for the throne
Arnault’s succession plan is not just about leadership. In 2023, for example, he extended the upper age limit for LVMH’s CEO from 75 to 80. In doing so, he gave himself more time to manage the transition recognising that succession is not an overnight exercise or, perhaps, a task to be completed in one generation.
Without too much fuss and in tacit form, he also restructured his family holding company, into a société commandité par actions (SCA). An SCA is a type of limited partnership that locks in family control through generations, while offering the flexibility to adapt.
In fashion, staying fashionable is the aim of the game and this requires adaptability and an openness to change. Arnault has quite brilliantly incorporated this mindset into his succession plan.
Three Lessons: Stitching together a legacy
Succession is not a one-off event
Protecting one’s legacy for the next generation takes a generation or more to fashion together. Unlike many founders, Arnault did not wait until retirement to begin crafting his succession plan. He has spent, quite literally, an entire generation positioning, testing, and mentoring his children. You will notice that he has never appointed his successor. Whether this pays off is yet to be seen but Arnault’s openness and adaptability to the succession process is there for all to see.
Meritocracy is an essential thread
LVMH is fundamentally a family business. However, it remains a public company with global shareholders and reach. Arnault, in his decision making, has made it abundantly clear that performance and merit will determine future leadership. In taking this approach, he is doing away with the age-old concept of primogeniture and instead rewarding excellence – the very standard that led him to such towering financial success.
Legal structures are nothing without the people
Perhaps surprising coming from a lawyer but irrespective of restructuring, Wills and other legal devices, Arnault’s key framework is that of family governance. Much like a building, the key structure is of little importance without working mechanisms like the electricity, water and insulation. In the context of a family business, a legal structure serves very little purpose without a set of people, a set of successors aligned to a common purpose and fashioned for the task.
Dressed for success
For Arnault, success is not in size alone or its financial weight as a proportion of the French GDP, however impressive this might sound. Much like the fashion world, domination and success across generations is down to a continual emphasis on excellence and an adaptability to achieve these aims.
Arnault is both a human embodiment and, ultimately, indistinguishable from his fashion empire. The tools to remain relevant and successful in fashion are indistinct from what constitutes success in succession. Vision, leadership, adaptability, merit and excellence – these are the ingredients for success in succession.
As ever, plans change. Whether this plan materialises into generational success remains to be seen.
