At 103 Champs-Elysees Avenue in Paris, a giant Louis Vuitton suitcase envelops the group's new hotel renovation project. Despite aesthetic debates, it stands as a testament to Bernard Arnault's power. Yet, inside this opulent "suitcase" lies a complex, unsolved puzzle: which of his five children will succeed him?

At LVMH's main headquarters, these family meals are likened to regular interviews to identify the "crown prince" (heir apparent). This training process began in their childhood. Arnault implemented a strict educational regimen, often calling his children into his office during meetings, not for play, but to solve math problems.

Billionaire Arnault with his second wife and two children from his first marriage. *Photo: WSJ*

Sidney Toledano, a long-time family confidant, recounted that even after long flights from Asia, Arnault would pull out math textbooks to study with his son. For the French billionaire, logical mathematical thinking is the core foundation for conquering the fashion world.

He was also captivated by Ecole Polytechnique, the prestigious engineering school he attended. Although his two eldest children, Antoine and Delphine, did not get into this school, his three younger children later graduated from top engineering schools like Polytechnique or MIT in the US.

The mentor strategy

Not leaving his children to fend for themselves, Arnault paired each with a seasoned veteran within the group for mentorship.

Delphine Arnault, 51, the eldest daughter, is considered a reflection of her father's demeanor. She was mentored for 12 years by veteran directors at Dior and Louis Vuitton. Delphine inherited her father's business acumen. She once recounted that during sample review meetings, Mr. Arnault would simply glance over hundreds of bags and point to one. Invariably, that would be the global bestseller. She is currently the chairman and CEO of Dior Couture.

The second son, Antoine Arnault, 49, holds the role of the empire's "foreign minister". He is responsible for brand image, communications, and environmental initiatives, and is also the CEO of Christian Dior SE, the parent company controlling LVMH.

His three sons with his second wife are also rapidly advancing. Alexandre Arnault, 34, known for his ability to connect with younger generations, was recently transferred to become deputy CEO of the Moët Hennessy spirits division. Frederic Arnault, 31, is currently CEO of Loro Piana and managing director of Financiere Agache. The youngest son, Jean Arnault, 28, is the director of Louis Vuitton's watch division.

Billionaire Arnault with his two sons, Alexandre and Frederic. *Photo: WSJ*

The 'no exit' structure

To ensure the empire is not torn apart after his death, Arnault established a unique ownership structure, which business circles liken to the play No Exit, where characters are perpetually bound together.

The billionaire divided 20% of the shares equally among his five children with an "ironclad" rule: For the next 30 years, no one is allowed to sell their shares without the absolute consent of the other four. The chairmanship will rotate among the five siblings every two years. This structure forces them into a situation: either unite and thrive, or be jointly confined by their shared interests.

To date, Arnault has not given any indication of the final chosen successor. He even amended the bylaws, raising the chairman's retirement age to 85, extending the race until 2034.

To maintain order, Bernard Arnault strictly forbids his children from arguing or competing over who is more capable, even in hobbies like playing piano or tennis. For the LVMH magnate, all seeds of division must be eradicated.

"Currently, they are all very harmonious", Sidney Toledano remarked. However, observers liken this harmony to a lake's surface: calm above but with undercurrents swirling beneath, as all hold their breath awaiting their father's final decision.

Bao Nhien (According to WSJ, Times)