WORLD
Unilever sacks CEO Schumacher in a surprise move, names Fernandez new chief
- IBJ Bureau
- Feb 26, 2025
Unilever surprised investors on Tuesday by ousting Chief Executive Officer (CEO) Hein Schumacher and replacing him with finance chief Fernando Fernandez, who will focus on speeding up execution of the consumer group’s turnaround strategy.
Unilever’s board, which includes billionaire activist investor Nelson Peltz, was unified in its decision to oust Mr Schumacher, a source familiar with the board’s thinking told the Reuters.
Mr Schumacher was surprised by the move, but the decision involved “nothing untoward”, the person said.
In an email to associates, Mr Schumacher defended his approach and record as CEO and said that he regretted leaving the company earlier than anticipated.
“The board is eager to step up the pace of our strategy execution and realise swift value creation underscored by a change in leadership,” he said in the email, which was shared with the Reuters.
The consumer goods industry has had a difficult time coping with a supply chain crunch triggered by the COVID-19 pandemic, sky-high commodity prices and an energy crisis after Russia invaded Ukraine.
Profit margins have been squeezed and sales volumes hit by consumers switching to cheaper options.
Unilever, which gave no specific reason for the CEO’s change, is facing pressure from investors to revitalise its fortunes and the top management upheaval comes just weeks after Unilever had announced underwhelming full-year earnings.
Unilever’s management change was made after a board meeting on Monday. The board concluded that Mr Fernandez, who has been with Unilever for nearly 40 years, was the right person to execute the company’s strategy.
Analysts and investors said that the news was unexpected but added that Mr Fernandez was a good choice to lead Unilever’s turnaround strategy.
Report By
View Reporter News