Unilever CEO Hein Schumacher Steps Down, Fernando Fernandez Appointed

Unilever has announced the sudden departure of CEO Hein Schumacher, who will step down by “mutual agreement” on March 1, after just under two years in the role.

The consumer goods giant has appointed Chief Financial Officer Fernando Fernandez, who has been with the company for nearly 40 years, as the new CEO in a bid to accelerate its turnaround strategy.

The move comes as the company faces increasing pressure from investors, including prominent activist Nelson Peltz, to improve its financial performance. Schumacher’s departure follows the launch of a significant restructuring effort under his leadership, which aimed to streamline the business and cut costs.

This includes plans to separate Unilever’s ice cream division and lay off 7,500 employees. However, the restructuring has caused internal turmoil, and senior executives have been leaving the company.

Unilever’s board, in a meeting on Monday, concluded that Fernandez—known for his decisive and results-oriented approach—was better suited to lead the company through its next phase of transformation.

Analysts have pointed out that while Schumacher’s departure was unexpected, Fernandez’s promotion is seen as a move to inject more speed and focus into the turnaround plan.

Fernandez, who previously led Unilever’s beauty business, took over as CFO earlier this year and is well-regarded by investors for his hands-on approach. His appointment is viewed as a positive by analysts, although some caution that his direct style may contrast with the more reserved leadership style of Schumacher.

Schumacher’s tenure at Unilever was marked by his ambitious restructuring initiatives and attempts to revive the company’s fortunes. However, recent financial results have raised concerns about the effectiveness of these strategies, with the company forecasting weak growth and underperforming earnings for the year ahead. Despite this, Schumacher’s efforts to overhaul Unilever were seen as a step toward revitalizing the company, which has struggled with declining market share in recent years.

Unilever’s share price had been performing well under Schumacher’s leadership, rising 11% since his appointment, but investors reacted cautiously to the news of his departure, with shares slipping by 2% in early trading on Tuesday.

In a statement, Unilever’s chairman Ian Meakins praised Schumacher for his work in resetting the company’s strategy and driving financial progress during 2024. Meakins also expressed confidence in Fernandez’s ability to accelerate the company’s transformation.

Schumacher, who was appointed by former chair Nils Andersen in 2023, will leave Unilever on May 31. The decision to part ways is described as amicable, and Schumacher will be entitled to a payment in lieu of the remainder of his notice period.