Bernard Arnault, the CEO and chairman of LVMH, aims to prolong his tenure at the helm of the luxury conglomerate. At 76, he is proposing an amendment to company bylaws to increase the age limit for his positions from 80 to 85, a decision that will be put to a shareholder vote in April. This move mirrors his previous success in 2022 when he had the limit raised from 75 to 80. LVMH, which owns brands like Louis Vuitton, Dior, and Tiffany & Co., reported nearly €85 billion ($92.8 billion) in revenue last year. The succession plan for Arnault’s leadership remains uncertain, despite all five of his children holding key roles within the company.
When Arnault previously adjusted the age limit for LVMH’s leadership in 2022, it was perceived as a strategy to maintain his control over the company. His latest attempt follows a broader trend of prominent executives delaying retirement, citing experience and stability as critical assets for businesses. Similar discussions have been held in various industries, with some leaders advocating for later retirement as life expectancy increases. However, this approach has also drawn criticism, particularly in France, where pension reforms have sparked protests against extended working years.
How is Arnault’s succession plan shaping up?
While Arnault has not publicly designated a successor, speculation continues about which of his children might eventually take over. His eldest son, Antoine, oversees communication at LVMH, while his daughter, Delphine, leads Christian Dior Couture. Frédéric Arnault recently stepped into the role of CEO at Loro Piana, and his younger sons, Alexandre and Jean, are also actively involved in the business. Industry observers note that the family’s deep involvement in the company suggests a potential for continued leadership by one of his children.
Why are other billionaires delaying retirement?
Warren Buffett and Bill Gates have also expressed support for extended working lives. Buffett, at 94, continues to lead Berkshire Hathaway (NYSE:BRK.A) and has even suggested that executives who wish to retire at 65 might not be suited for leadership roles. Gates has similarly indicated that he intends to remain active in his business and philanthropic ventures for at least two more decades. The argument for later retirement is often based on the idea that experienced leaders can continue to provide value and stability to their companies.
In contrast, the general workforce in France has pushed back against increased retirement ages. The government raised the official retirement age from 62 to 64, citing the need to sustain pension funds. However, this decision faced strong opposition, culminating in protests that included demonstrators entering LVMH’s Paris headquarters in 2023. Critics argue that billionaires like Arnault should contribute more to public pension systems rather than seeking to extend their own careers indefinitely.
Arnault’s proposal highlights the differing perspectives on retirement between business leaders and the general public. While executives see extended careers as beneficial to corporate stability, wider economic concerns complicate the issue. The situation also raises questions about governance in family-led businesses, as LVMH’s future leadership remains undetermined. With shareholder approval pending, the outcome of this proposal will shape both Arnault’s legacy at LVMH and the broader conversation around executive retirement.
