World's Richest Person, Bernard Arnault Tests His 5 Children Over Lunches To Choose His Next Successor

World richest person and CEO of LVMH, Bernard Arnault evaluates his five children during family lunches to identify the next successor to his vast empire, according to a report by Wall Street Journal (WSJ).

Arnault reportedly meets his five children once a month for an exact 90-minute lunch inside a private dining room at the headquarters of LVMH Moet Hennessy Louis Vuitton SE. During lunch the French billionaire begins reading off his iPad to discuss strategy at his luxury business empire.

As per the WSJ, Arnault then goes around the table seeking his five adult children for advice. Taking in their opinions on specific managers at the company, the people said, or whether it's time for a shake-up at one of LVMH's myriad brands.

Mr Arnault effectively auditions them to see who will take over the luxury empire. However, the billionaire has given no indication of whom he will choose as his successor, saying only that it will be based on merit.

WSJ report stated that monthly sessions are part of the decades-long plan to prepare his children who will take over the company when he is no longer there.

Arnault has also appointed his children to important positions within the company. His eldest daughter, Dephine is the designated head of the second-largest brand in the empire Christian Dior. The position of managing the holding firm that oversees LVMH and Mr Arnault's family fortune is given to her brother Antoine, as per the outlet. Frederic Arnault is the CEO of TAG Heuer, Alexandre Arnault is an executive at Tiffany and the youngest sibling Jean Arnault is in charge of marketing and product development for Louis Vuitton's watch department.

Mr Arnault owns about half of the massive luxury brand company. In 1989, he acquired a controlling stake in LVMH. The company's portfolio of brands includes Louis Vuitton, Bulgari, Tiffany, Sephora, TAG Heuer and Dom Perignon champagne.

According to the Bloomberg Billionaires Index, Arnault's fortune stands at almost $212 billion on Monday when the LMVH's stock price rallied to surpass $500 billion. He pulled ahead of Tesla CEO Elon Musk late last year as the wealthiest person on the planet. His wealth was $208 billion on April 19, according to the index.

Further LVMH has become the first European company to surpass $500 billion market value milestone, on account of booming sales of luxury goods in China and a strengthening euro as per Bloomberg.