What Warren Buffett Told Bernard Arnault On Taking Retirement At 80

Luxury giant LVMH, helmed by its founder and CEO Bernard Arnault, has sparked speculation about its future leadership. The 75-year-old billionaire, one of the world's wealthiest people, has yet to name a successor, despite his children's involvement in the company. 

With LVMH being one of Europe's most valuable companies and owning iconic luxury brands, the question of who will lead the conglomerate after Arnault remains a topic of interest for investors and consumers alike. While his children are active in the business and serve on the board, the exact succession plan remains unclear. 

Arnault, known for his dedication to LVMH, has expressed his intention to continue leading the company. He even extended the retirement age for the chairman and CEO role to 80 to ensure a longer tenure. 

"I have five members of the family working in the group. Let's see if one of them can take over," Arnault told Bloomberg.

As is common with founder-CEOs, Arnault considers LVMH his "baby." He devotes 12-hour days to managing the company he transformed into a global powerhouse, with $92.17 billion in revenue last year.  

The luxury mogul successfully pushed LVMH's board to raise the retirement age for its chairman and CEO (himself) from 75 to 80, allowing him to stay at the helm longer. Following this decision, Arnault received a letter from Warren Buffett, then 93, the legendary investor and founder of Berkshire Hathaway, advising him it was a mistake, as the age limit was too low, according to Bloomberg.

LVMH Moet Hennessy Louis Vuitton SE, a global luxury goods conglomerate, has recently made strategic leadership changes, including the appointment of Cecile Cabanis as the future CFO. While these changes signify a shift in the company's executive structure, the Arnault family remains firmly entrenched as the primary stakeholders.

The family's substantial ownership and control over LVMH, bolstered by the recent restructuring of the holding company Agache, ensure their continued influence. Additionally, the next generation of Arnaults has been actively assuming leadership roles within the group. Delphine, Antoine, Alexandre, Fredric, and Jean have established themselves in key positions across various luxury brands, demonstrating their commitment to the family business. 

As LVMH continues its trajectory of growth and innovation, the question of succession remains a subject of industry speculation. While Bernard Arnault, the visionary founder and CEO, remains at the helm, the involvement of his children suggests a family-centric approach to future leadership. However, the specific details of the succession plan remain undisclosed, adding an air of intrigue to the future of this global luxury powerhouse.