Hermès’ largest individual shareholder, Nicolas Puech, has made waves with his unconventional plan to adopt a domestic employee in order to secure the inheritance of a portion of his multi-billion Swiss franc fortune. Puech, who is 80 years old and resides in Switzerland, has decided to deviate from the traditional succession plan and instead adopt a “former gardener and all-around handyman” from a modest Moroccan family.
Puech’s wealth is estimated to be around 9 to 10 billion Swiss francs, primarily due to his stakes in Hermès, according to Bilan magazine’s annual rankings. In October 2022, Puech took steps to arrange his succession situation, including pursuing an adoption process, which is currently ongoing. Although adult adoption is uncommon in Switzerland, it is not entirely unprecedented. If the adoption is successful, Puech’s chosen heir may stand to inherit at least half of his vast fortune.
However, Puech’s plan has encountered opposition. In 2011, he signed a succession pact in favor of the Isocrate foundation, a Geneva-based organization that supports journalism NGOs fighting disinformation. This pact, which carries more weight than a will, was established to safeguard the foundation’s interests. Nevertheless, in a handwritten note from February 2023, Puech expressed his intention to make alternative testamentary arrangements, hinting at a change of heart.
Upon learning of Puech’s desire to revoke the succession pact, the Isocrate foundation expressed surprise and stated that they were unaware of any other arrangements. They argued that his decision to unilaterally cancel the pact is unfounded and have openly opposed it while remaining open to discussion.
This unforeseen development raises concerns about the sustainability of the foundation’s activities, which serve the public interest. Conflicts between individuals and conflicting interests have jeopardized the foundation’s future, leaving it in a precarious position.
It is important to note that the Hermès family has faced challenges in the past when it comes to protecting their legacy. In the early 2010s, the founding family established a holding structure to prevent LVMH’s attempted takeover of Hermès. However, Puech, a dissenter, chose not to participate in the holding structure, known as H51.
As the adoption process continues and discussions regarding the succession pact unfold, the fate of Nicolas Puech’s fortune and the Isocrate foundation hang in the balance. The resolution of this unique situation and its impact on the future of Hermès and its stakeholders remains uncertain, and only time will provide answers.
For more information on Hermès and its history, visit Hermès Official Website.
To learn about the Isocrate foundation and its work, visit Isocrate Foundation Official Website.
