World's Richest Man Promotes Daughter To Head Dior

The richest man in the world, Bernard Arnault, has chosen his daughter to lead the Dior fashion firm. As part of organizational changes at LVMH, the most valuable firm in Europe, Mr. Arnault gave Delphine Arnault, 47, a promotion.

It is estimated to be valued £336 billion and possesses a portfolio of luxury brands, including Fendi and Louis Vuitton. Michael Burke, the longtime CEO of Louis Vuitton, will be replaced by Pietro Beccari, the departing leader of Dior.

These are "natural advancements within the group" because both Ms. Arnault and Mr. Beccari "are well respected," according to Credit Suisse analyst Natasha Brilliant.

The group's brands employ all five of Mr. Arnault's children in management roles. The modifications, which take effect in February, come in response to Antoine Arnault, Bernard Arnault's eldest son, being recently named to lead the family holding firm.

While Frederic Arnault, 28, is the chief executive of another group company, Tag Heuer, Alexandre Arnault, 30, is in charge of products and communications at Tiffany. In charge of marketing and product development for Louis Vuitton's watch section is the youngest kid, Jean Arnault, 24.

The products sold by Mr. Arnault's businesses include champagne made by Moet and Chandon and designer luggage by Louis Vuitton.

"Succession planning in strategic roles has been instrumental to the success of LVMH's key brands over the past 20 years, hence today's moves are significant," said Thomas Chauvet, an analyst at Citi.

Global celebrities including K-pop star Jisoo and singer Rihanna attend Christian Dior's runway presentations in Paris, attracting fervent groups of followers.

Since 2013, Delphine Arnault has served as the executive vice president of LVMH's Louis Vuitton division. According to LVMH, Louis Vuitton achieved new sales highs under Ms. Arnault's direction.

Other significant fashion brands in recent years have implemented similar succession plans. In 2021, Inditex, a major player in high street fashion and owner of companies including Zara and Massimo Dutti, named the daughter of its founder as its new chairwoman. There, Marta Ortega was 37 years old.

Prada's CEO, Patrizio Bertelli, has stated his intention to transfer control of the business to his son Lorenzo within two years. In December 2022, Bernard Arnault passed Elon Musk to take the title of richest person in the world.