The Wertheimer family, the billionaire owners behind Chanel, are set to receive $5.7 billion dividend for 2023. This marks the largest annual payout since the luxury brand began publishing its financial results in London six years ago. Over the past three years, the Wertheimers have amassed a total of $12.4 billion in dividends from Chanel’s earnings, significantly boosting their personal wealth.
The Wertheimers’ holding company for Chanel, based in the Cayman Islands, benefits from favorable tax conditions, as the region does not impose taxes on local business dividends. Additionally, the UK, where Chanel is headquartered, typically does not levy withholding taxes on dividends paid to foreign entities. This advantageous structure has allowed the Wertheimers to maximize their earnings, contributing to a 19 percent increase in their net worth over the past year, bringing their total wealth to $108 billion according to the Bloomberg Billionaires Index. This is a notable 26 percent rise since their 2021 dividend.
Alain and Gerard Wertheimer, aged 75 and 72 respectively, each hold equal shares in the company. They inherited their stakes as grandsons of one of Gabrielle “Coco” Chanel’s original business partners. The Wertheimers are part of an elite group of French billionaires whose fortunes have surged due to a rising demand for luxury goods. This group includes Bernard Arnault of LVMH, Francoise Bettencourt Meyers of L’Oreal, and the family behind Hermes International SCA.
Despite a softening in the luxury sector for some brands, Chanel has continued to perform robustly, with revenues increasing by 16 percent last year to nearly $20 billion.
