In an interview, Elon Musk asserted that "nothing will make you happier than having kids," which has sparked discussion given his controversial approach to parenting and his stance on corporate succession. "I am definitely not in the school of automatically giving my kids some shares of the companies, even if they had no interest, inclination, or ability to manage the company," Musk said. "I think that's a mistake."
Musk, the CEO of Tesla and SpaceX, advocates for a merit-based approach, suggesting that the succession of his businesses should be determined by the most qualified individuals rather than familial ties. This stance aligns with his broader belief in a "meritocracy" over nepotism, which can be particularly challenging to navigate in a blended family like Musk's own.
Musk's Varied Relationships with His Children
As the father of twelve children with three different partners, his offspring range from toddlers to 21-years-old. His eldest son with Grimes, famously named X AE A-12, frequently appears at public events and even has a unique X (formerly Twitter) badge. However, Musk's relationship with one of his older children is notably strained.
In 2022, Musk's eldest daughter, Vivian Jenna Wilson, legally changed her name and gender identity, severing ties with her father. Recently, she publicly refuted Musk's claim that she was "killed by the woke-mind virus" by posting on Meta's Threads platform, stating, "I look pretty good for a dead bitch." Wilson reiterated to her followers that she had disowned Musk, not the other way around, and shared a screenshot of an old tweet from Musk describing her as "born gay and slightly autistic," which she labeled as entirely fake.
Contrasting Approaches: The Arnault Example
In stark contrast, some families have successfully integrated their personal and professional lives. One notable example is Bernard Arnault, one of the world's wealthiest men and the founder, chairman and CEO of LVMH, the largest luxury goods conglomerate. Arnault welcomed his children into executive roles, demonstrating a different approach to corporate succession.
In April, Arnault added two more of his children to LVMH's executive board, bringing the total to four out of his five children. Overwhelmingly positive shareholder votes backed these appointments. Each of Arnault's children holds significant roles within LVMH's various companies:
- Delphine Arnault is the CEO of Dior.
- Antoine Arnault serves as the image and environment director of LVMH.
- Alexandre Arnault, who became one of the youngest CEOs in fashion at 25, is now the EVP of Tiffany & Co.
- Frederic Arnault heads the watches division, including Tag Heuer.
- Jean Arnault, though he still needs to be added to the executive board, is the director of watches for Louis Vuitton.
The Arnault family's integration into LVMH contrasts with Musk's approach, highlighting a successful blending of family and business interests.
Other CEOs and Their Approach to Succession
However, Musk is not alone in his belief that wealth and business control should not be automatically passed down to children. As Business Insider reports, several other billionaires share this view. For instance, Warren Buffett, one of the world's most successful investors, has long stated that he will not leave his vast fortune to his children. Instead, he plans to donate most of his wealth to charitable causes through the Giving Pledge.
Bill Gates, co-founder of Microsoft, has also committed to giving away most of his wealth, ensuring his children receive only a small fraction of his fortune. Gates believes leaving massive wealth to his children would not benefit them or society. Similarly, Michael Bloomberg, former mayor of New York City and founder of Bloomberg L.P., has pledged to give away most of his wealth, emphasising that the best financial legacy he can leave his children is to improve the world they live in.
While he publicly extols the joys of fatherhood, Musk's meritocratic views on corporate succession suggest a preference for professional capability over familial connection. His approach raises questions about the balance between maintaining family legacy and ensuring professional competence. For many, Musk's stance may seem pragmatic and forward-thinking, yet it also highlights the potential challenges and complexities of navigating family dynamics within a corporate structure.
