The Art of Slowing Down

069: Cantor’s Heirs Face Scrutiny—Why Is LVMH’s Dynasty Getting a Free Pass?

While investors and the media are raising alarms about Cantor Fitzgerald’s rapid succession plan—installing Kyle and Brandon Lutnick in top roles despite their age and more importantly limited experience—there’s been a baffling lack of scrutiny toward LVMH, where Bernard Arnault is quietly cementing his family’s control over the world’s largest luxury empire.

At Cantor, critics question whether the Lutnick brothers have the expertise to manage a financial powerhouse, yet in LVMH’s case, Arnault’s children continue to be handed key leadership roles with little pushback. Investors in Cantor-related companies like BGC Partners are rightfully concerned about nepotism, but LVMH shareholders should be just as alarmed. Unlike Cantor, a firm known for calculated risk-taking, LVMH’s future rests on a family dynasty running a €370+ billion company without proving they’re the best people for the job.

The market has been willing to look past the glaring issues with LVMH’s succession planning, however when Arnault eventually steps back, will investors suddenly realize they’ve ignored a fundamental problem? If questions of meritocracy and corporate governance matter on Wall Street, they should matter just as much in luxury—before it's too late.

I have previously highlighted this potential issue, however, let’s dive into the specifics.