The issue of succession is coming increasingly to the fore. Bernard Arnault is under pressure from some investors who are calling for greater clarity on the future governance of LVMH. At the same time, Chanel is reportedly recruiting two senior managers: one to replace chief financial officer Philippe Blondiaux and another to succeed Bruno Pavlovsky as CEO of its fashion activities. Changes are also on the horizon at Dior.
The succession question
The matter is becoming an ever greater risk for LVMH. This is the view of several shareholders who want to know who will eventually take the helm after Arnault. “Succession planning, as it stands, appears unclear and opaque”, Stefan Bauknecht, an equity portfolio manager at Deutsche Bank and LVMH’s twelfth-largest shareholder according to LSEG data, told Reuters. “We want more transparency and a plan for how things will evolve”. Arnault will turn 77 in just over a month and, under current rules, can remain at the helm of LVMH until the age of 85. He has five children, all of whom hold roles within the group. LVMH told Reuters that succession plans do exist, but are not public. Reuters interviewed seven institutional investors, six of whom are LVMH shareholders. All said they had no visibility on the company’s succession plans, with four describing the lack of clarity as problematic.
Chanel too
Chanel also appears to be grappling with succession issues — not at ownership level, but in two key executive roles. As reported by Miss Tweed, Chanel is looking for a new CFO to replace Philippe Blondiaux and is also seeking a new CEO for its fashion operations to succeed Bruno Pavlovsky. Blondiaux is expected to leave the company at the end of this year, while Pavlovsky is due to step down by early 2027 at the latest, according to sources close to the brand.
And Dior
Dior, by contrast, appears to have filled a recent gap in its organisation. According to market sources, Jenny Kim is set to succeed Marisa Pucci, who recently stepped down as head of communications and image at Christian Dior Americas to join Moncler. Kim will arrive from Bottega Veneta. Meanwhile, as of 1 February, Charlotte Holman has been promoted to President of Christian Dior Couture Americas, succeeding Alexandra Winokur. This was reported by WWD.
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