STORY: Bernard Arnault, the Chairman and CEO of Europe's most valuable company, luxury retailer LVMH, has appointed his daughter Delphine to lead Christian Dior, in a shakeup of top management that tightens the family grip on his empire.
Arnault, who recently overtook Elon Musk as the world's richest person, will move the former head of Dior, Pietro Beccari, into the top job at Louis Vuitton, replacing long-time CEO Michael Burke.
Shares of the company rose as much as 2% to hit new highs following the news.
Delphine Arnault has worked at Louis Vuitton for the past decade alongside Burke and previously spent 12 years at Dior.
The company said in a statement that Burke, who is Bernard Arnault's longest-serving lieutenant and has also been chairman of jewelry label Tiffany, will continue to work alongside the 73-year-old chairman, without detailing his new role.
One of the fashion industry's most influential executives, Burke oversaw soaring growth at Louis Vuitton, the world's largest luxury label, playing a key role for example in elevating street styles to the realm of luxury in recent years.
The announced changes, which come into effect in February, follow the recent appointment of Antoine Arnault, Bernard's eldest son, to head the family's holding company.
Bernard Arnault has shown no signs he plans to step down soon and the company last year raised the maximum age of its CEO to 80 from 75.
All of his children hold management positions at the company, carefully groomed by senior executives as they move up the ranks.
Alexandre Arnault is in charge of products and communication at Tiffany, while Frederic Arnault is CEO of TAG Heuer. The youngest child, 24-year-old Jean Arnault heads marketing and product development for Louis Vuitton's watches division.