Roula Khalaf, the Editor of the FT, curates her preferred stories in a weekly newsletter called the Editor’s Digest, which is available for free.
Unilever has decided to replace its chief executive, Hein Schumacher, with chief financial officer Fernando Fernandez. This change comes as part of the company’s efforts to enhance its performance. Schumacher, who began his role in July 2023, will step down by “mutual agreement” on March 1, as announced by Unilever on Tuesday.
The decision follows mounting pressure from investors, including US activist Nelson Peltz, due to Unilever’s unsatisfactory performance. Schumacher had introduced a comprehensive restructuring plan, which involved cutting 7,500 jobs and separating the ice cream business.
According to a source familiar with the situation, the decision to remove Schumacher was made during a board meeting on Monday. The directors concluded that Fernandez was more suitable to implement the turnaround strategy. Fernandez has gained popularity among investors and made a positive impression during Unilever’s capital markets day last year.
Fernandez, originally from Argentina, has nearly four decades of experience with Unilever, including leading its beauty business. He assumed the role of chief financial officer in early 2024. Unilever chair Ian Meakins expressed confidence in Fernandez’s decisive, results-focused approach and his capability to drive rapid change.
Schumacher’s departure comes shortly after Unilever’s annual results and a subdued growth outlook left investors dissatisfied. Analysts noted that each of the company’s divisions missed their targets in the fourth quarter. Meakins acknowledged Schumacher’s contributions to resetting Unilever’s strategy, his focus, and the financial progress during 2024.
In November, Schumacher announced plans to sell smaller, underperforming food brands, contributing approximately £1 billion in revenue. This could involve brands such as Vegetarian Butcher, Pot Noodle, Marmite, and Colman’s.
Unilever’s shares declined by 2% in early trading on Tuesday as investors processed the news. Schumacher is set to leave the company on May 31.