The world’s richest people are desperately looking for their successor

“This whole family is a nest of vipers. They will wrap around you and suffocate you.” Those were the words of Logan’s older brother Roy in the hit HBO series ‘Succession’ as he warned his grandson Greg about the dangers of entering the family business.

However, sometimes fiction and reality are not so far apart. The succession process is one of the most sensitive and difficult moments in the life of a family business.

The average age of the world’s 30 richest people is 70 years, and the time to hand over the baton is drawing near. Replacing a charismatic leader is always complicated and often involves changing the company’s model. The role that the family will play is decisive. The family may relinquish the day-to-day running of the company, giving executive control to a non-family CEO, but never absolute control.

Buffett links succession and legacy

The most famous investor in the world, Mr Warren Buffett94, has already organized his succession plan. Despite the death of longtime partner and right-hand man Charlie Munger last year, Buffett shows no signs of retirement. In May 2021, the American businessman and philanthropist announced that his successor as CEO of the Berkshire Hathaway group will be Greg Abel, who has been vice president since 2018 and head of the group’s energy division. Abel, a 62-year-old Canadian, will take on the role of chief executive but will not replace Buffett as chairman. This position is expected to be taken by Buffett’s son, Howard. His company, Berkshire Hathaway, is worth about $1 trillion. dollars!

In principle, Greg Abel will have the power to make investment decisions, as Buffett explained at Berkshire Hathaway’s 2023 shareholder meeting and reiterated this year. Warren Buffett revealed another important detail about his future this year: the fate of his inheritance. The investor – currently the world’s ninth-richest person with an estimated fortune of $144 billion – plans to leave most of his fortune to a new charity to be run by his children. Buffett has three children: Susan, 72, Howard, 69, and Peter, 66. Susan and Howard are both board members of Berkshire Hathaway, and all three siblings already run their own charities. But Buffett plans to entrust his legacy to a new foundation, where decisions about the distribution of funds will require unanimous agreement among the three.

The battle of the Murdochs and the courtrooms…

Rupert Murdoch is Australian and became an American citizen in 1985 in order to acquire ownership of the Fox News television network. However, Murdoch’s influence in British politics and his involvement in various scandals in recent decades have made the fight for future control of his media empire look like a quintessentially British soap opera.

The Murdoch family was the main inspiration for the TV series ‘Succession’. Now, a court in Reno, Nevada, has started a hearing – closed to the press – since September to review the trust that divides control of the Murdoch empire among family members.

The trust, established in 1999, gives the Murdoch family eight votes, giving them decisive control over their companies’ boards. News Corporation, which oversees major media outlets such as the Times, the Sun and the Wall Street Journal, also controls a vast network of radio and television stations. Fox News in the US and Talk TV in the UK are key players in shaping conservative political discourse in their respective countries.

Rupert Murdoch, 93, holds four of the trust’s votes. The other four are shared between his eldest children: Prudence (age 66), Elizabeth (age 56), Lachlan (age 53) and James (age 51). His two youngest daughters, Grace (22) and Chloe (21), born from his third marriage to Wendi Deng, are not included in the trust.

In recent years, Rupert and his son Lachlan have become more aligned on their far-right political views and the role they believe the media should play in shaping those views. A major change came when Rupert stepped down as chairman of Fox and News Corp, handing the reins to Lachlan.

Experts believe the other three children – Prudence, Elizabeth and James – with more moderate political views compared to Rupert and Lachlan, are fighting their court battle to prevent Lachlan from consolidating his power over the empire. of the media. However, it is very likely that this dispute will end in an out-of-court settlement, with financial exchanges…

Giorgio Armani: The challenge of succeeding a legend

Giorgio Armani’s situation stands out in today’s fashion industry and global economy. His empire is inextricably linked to his personal vision. The founder meticulously oversees every detail, from the clothing collections presented each year to the financial decisions made for the company. As designer, CEO and sole shareholder of the brand that bears his name, Armani has consistently prioritized independence in a sector increasingly dominated by large luxury conglomerates.

Now in his 90s, the question of succession becomes critical. Armani has no children or clear heirs to take over his venerable fashion house, although some of his relatives sit on the company’s board of directors. This uncertainty about the future of such an iconic brand has become a “pressing concern” in Italy. Identifying a suitable successor for a fashion legend is no small task. Responding to this challenge, he himself tries to settle the backlog. He recently revealed that he has put together a comprehensive succession plan to ensure his legacy continues once he steps down from the helm of the fashion group.

The designer has admitted that he is not looking for a sole successor to his empire. Instead, he is targeting a group of trusted associates who will fill the leadership void when he leaves. Over the years, he has carefully selected and trained a talented team to ensure that the company continues to prosper while maintaining the brand’s core values. A celebrity favorite on the red carpet, Armani has developed collaborations with various stars over the years, including Richard Gere, Eric Clapton and Lady Gaga.