LVMH Lines Up Next CFO as Luxury Empire’s Succession Stakes Grow

LVMH has chosen an eventual successor to its long-time chief monetary officer as billionaire Bernard Arnault prepares a brand new era of leaders to steer the world’s greatest luxurious group.

The dad or mum firm of Louis Vuitton appointed Cecile Cabanis as deputy finance director, reporting to CFO Jean-Jacques Guiony. A former CFO of French yoghurt maker Danone SA, Cabanis is presently deputy chief govt officer of Tikehau Capital.

Cabanis, who begins on Monday, will be part of the manager committee, turning into the third lady on the physique alongside Delphine Arnault, the eldest baby of the billionaire CEO, and Chantal Gaemperle, 61, who’s accountable for human assets.

The appointment of Cabanis is a part of a wider administration shake-up. Arnault, 75, bought a brand new deputy when Stephane Bianchi took over that position from Antonio Belloni after April’s annual common assembly.

The query of succession is of rising curiosity to observers of the world’s largest purveyor of high-end items. Arnault’s 5 youngsters all maintain key roles throughout the group, and 4 have been named to the corporate’s board. Additionally they have oversight and administration duties at household holding autos.

This week, the world’s wealthiest individual named his son Frederic Arnault, 29, as managing director of Financiere Agache, one of many holding firms by which the household controls its stake in LVMH Moët Hennessy Louis Vuitton SE.

Bernard Arnault, with a fortune of about $215 billion, in keeping with the Bloomberg Billionaires Index, has stated he has no plans to retire. The household holds nearly half of LVMH’s share capital, with about 64 % of the voting rights.

Throughout his 20 years as CFO, Guiony has helped oversee acquisitions together with Tiffany & Co. — the largest up to now within the luxurious business — Bulgari, Loro Piana and Belmond. When Guiony joined from the funding financial institution Lazard Freres in September 2003, initially as deputy CFO, the market capitalisation of LVMH was about €26 billion ($28 billion). It’s now €381 billion, making the Paris-based group Europe’s third-biggest firm by market worth.

Arnault and Guiony additionally confronted some M&A defeats, notably when an tried takeover in 2010 of Hermes Worldwide SCA failed. Guiony will get new, as-yet-undisclosed duties at LVMH sooner or later, the corporate stated.

Throughout Guiony’s tenure, the corporate has capitalised on booming international demand for luxurious items, particularly in China. Extra just lately, gross sales have slowed in that key market, however LVMH has been extra resilient than rivals resembling Gucci proprietor Kering SA.

By Angelina Rascouet

Be taught extra:

With Succession in Focus, LVMH Adds Alexandre and Frédéric Arnault to Board

At its annual assembly Thursday, LVMH shareholders accepted the posh conglomerate’s proposal so as to add two extra of chairman Bernard Arnault’s youngsters to its board of administrators.

Disclosure: LVMH is a part of a bunch of traders who, collectively, maintain a minority curiosity in The Enterprise of Vogue. All traders have signed shareholders’ documentation guaranteeing BoF’s full editorial independence.