LVMH's Succession Saga: Uncertainty Looms Over Arnault's Empire

Bernard Arnault, 76, leads LVMH but lacks a clear succession plan, worrying shareholders. Despite extending the CEO age limit to 85, Arnault hasn't named a successor, causing investor concern over transparency. His five children, involved in the company, are seen as potential heirs in the absence of specific plans.

LVMH shareholders are becoming increasingly concerned over the lack of a clear succession plan from Bernard Arnault, who has led the luxury giant for nearly four decades. The absence of transparency has raised risks for the company, valued at $350 billion.

Arnault, at 76, oversees a sprawling empire with more than 70 brands, including Dior and Tiffany. Despite extending the age limit for his CEO and chairman roles, questions persist over his successor among his five children who are active in the company's operations. Investors are demanding greater transparency and a clear succession plan.

Critics argue the uncertainty qualifies as a risk factor, affecting governance and potentially impacting share prices. While the company maintains that plans are in place without providing specifics, legal filings suggest Arnault's children could take control, although this strategy is seen as fraught with potential tension.

(With inputs from agencies.)