Robust corporate

governance

The rights of LVMH shareholders are protected

by law and the principles of corporate governance,

which govern the way the Group operates.

LVMH’s Board of Directors is the strategic body

of the Company that is primarily responsible for driv-

ing long-term value creation and protecting its

corporate interests, focusing in particular on the

social, environmental and climate-related issues

facing its business.

Role of the Board of Directors

in the Company’s strategy

The Board of Directors’ principal assignments are to

approve the Company’s and the Group’s broad stra-

tegic direction – particularly with regard to social,

environmental and climate-related matters – and

supervise its implementation, as well as verifying

the fair and accurate presentation of information. It

is also tasked with protecting the Group’s corporate

assets and ensuring that core business risks are

accounted for in its management. The Board also

sees to it that procedures to prevent corruption and

influence-peddling risks are implemented within the

Group and that procedures are followed with regard

to data protection and ethics. It also monitors the

impact of the Group’s non-discrimination and diver-

sity policy. Lastly, it acts as guarantor of the rights of

all of its shareholders.

A Charter has been adopted by the Board of Directors

which outlines rules governing its membership, duties,

procedures, and responsibilities.

Committees of the Board

of Directors

The Board of Directors has set up three committees:

a committee in charge of performance audit, a com-

mittee in charge of compensation, and a committee

in charge of sustainability and governance, the princi-

pal duties of which are as follows:

– The Performance Audit Committee ensures the

integrity of the financial and sustainability reporting

processes, the independence of the auditors by super-

vising their assignments, and the effectiveness of

internal control and risk management procedures.

– The Compensation Committee advises on the

compensation policy for company officers and

makes proposals concerning the compensation,

benefits in kind and stock option and bonus share

allocations of senior executive officers, Directors and

Advisory Board members holding operational posi-

tions. It also makes recommendations on the perfor-

mance criteria applied to the variable portion of

senior executive officers’ compensation, as well as

periodically assessing the extent to which these

criteria have been met.

– The Sustainability & Governance Committee assists

the Board of Directors in defining and monitoring the

Group’s strategic direction with regard to ethical, envi-

ronmental, climate- and workforce-related matters,

and ensures that its values and rules of conduct are

upheld. It issues opinions on applications for Director

or Advisory Board member positions, on the member-

ship, diversity, independence and operation of the Board

of Directors and on all governancerelated matters

These committees consist of at least three members,

appointed by the Board of Directors. The Chairman of

each committee is appointed from among its mem-

bers by the Board of Directors. All three committees

are chaired by an Independent Director.

Meetings or joint working sessions may be organized

between the Board’s various committees on cross-cut-

ting topics, particularly with regard to social and envi-

ronmental responsibility and climate issues.

Governance structure devoted

to the Group’s duty of vigilance

In 2024, LVMH tightened up oversight of its vigilance

policy by putting in place a dedicated governance

structure involving every level of the Group, from the

Board of Directors right down to operational

communities within the Maisons, and creating a new

department focused solely on the duty of vigilance.

Duty of Vigilance Committees were established within

the Group and at most of the Maisons. These commit-

tees are made up of the main departments involved

in duty of vigilance issues, and therefore in the effective

implementation of LVMH’s vigilance plan.

In addition, although risk analysis tools and materials

had already been rolled out at the Group and Maison

level in 2017, a project to review, harmonize and signif-

icantly strengthen this analytical framework was

carried out in 2024. Based on the main internationally

recognized duty of vigilance standards, this project

reflects LVMH’s desire to align its vigilance policy with

the requirements of French duty of vigilance legislation,

while also integrating EU regulatory requirements