Louis Vuitton 2005 Annual Report Download - page 60

PASSIONATE ABOUT CREATIVITY
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LVMH 2005 SUSTAINABLE DEVELOPMENT
●Manufacture Zenith, which works within the very closed circle of
watch designers, has continued to encourage innovation while preserv-
ing the tradition it has protected for over 140 years. Its success is driven
by the talents of individuals who work to pursue this expertise.
In effect, it requires more than 10 years to train a watchmaker. After a
basic training of approximately 3 years, often supplemented with specific
modules, at least another five years of experience is required to master
all the complexities of a know-how that involves both art and technology.
●Hennessy trains two œnologists every ten years. Ten years is neces-
sary to train a professional taster. Learning to memorize the smells, to
distinguish the essential from the secondary is the only way to make
sure an exceptional eau-de-vie is not overlooked. The mission of the
Cellar Master is to manage the heritage transmitted by his predeces-
sors, and, in turn, to pass this heritage on to his successors. The Cellar
Master is the one responsible for selecting the exceptional eaux-de-vie to
be used in the blends over the next 30 or 50 years.
MOTIVATION AND LOYALTY
SHARING THE VISION AND BEST PRACTICES Created in
London in 1999, LVMH House, a management and innovation center
specifically dedicated to the development of Group executives, offers
forums focused on global strategic issues such as leadership, new tech-
nologies, innovation and creativity, and the art of developing a luxury
brand.
The forums at LVMH House are led by members of the Executive
Committee and brand presidents. Their role is to facilitate discussion and
encourage exchanges among participants.
DIVERSE INTERNATIONAL CAREER PATHS LVMH encour-
ages employee mobilities, from one geographic region to another or
from one business to another. The diversity of the companies within
the LVMH Group, their identity and their business expertise in a wide
array of trades, encourage these two types of mobility.
A large number of professional reassignments, adapted to the skills and
aspirations of each employee, are offered every year.
LVMH also promotes transfers from one professional category to
another, encouraging its employees to acquire new skills, particularly
through technical or educational programs.
Today, more than half the managerial positions are filled through inter-
nal transfers. Nearly 40% of these changes involve transfers from one
Group company to another. One out of five involves transfers to another
country.
AN ATTRACTIVE SALARY POLICY In order to attract, motivate
and retain new talent, the Group policy is to offer salaries that compare
favorably with the market.
Compensation surveys are conducted each year to measure the compen-
sation level of managers and employees in the various regions in which
the Group is established: Europe, United States, Japan, Asia Pacific.
In addition, surveys specific to a branch of activity or business are
periodically conducted for a country or group of countries.
Thanks to their excellent performances, most of the Group’s compa-
nies in France bestow their employees with bonuses and profit-sharing
incentives at much higher than market average levels.
In order to foster the loyalty of its best employees, LVMH pursued its
stock-option program in 2005.
“The Art of Luxury Branding” forum offers the participants a new look at
the creation, development, and protection of the identity of a luxury brand.