Unilever (ULVR.L) surprised investors on Tuesday by removing CEO Hein Schumacher and appointing finance chief Fernando Fernandez as his replacement. The change, made during a board meeting that included activist investor Nelson Peltz, was described by a source as a unified decision by the board, even though Schumacher was taken aback by the move. In an email to colleagues, Schumacher defended his leadership and expressed regret over his earlier-than-expected departure, noting that the board wanted to accelerate the execution of the company’s growth strategy for faster value creation.
The announcement, which comes after less than two years of Schumacher’s tenure—during which Unilever’s shares had risen more than 9%—triggered a decline of up to 3.4% in the company’s stock. The decision follows ongoing challenges in the consumer goods industry, including a supply chain crunch, high commodity prices, and an energy crisis following Russia’s invasion of Ukraine, all of which have squeezed profit margins and shifted consumer behavior toward cheaper alternatives.
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The management change was confirmed by the board after a meeting on Monday, with Fernandez, who has been with Unilever for nearly 40 years, deemed the right person to drive the turnaround strategy. Schumacher had previously reset the company’s strategy to address years of underperformance, announcing cost-cutting measures and plans to separate the ice cream division and reduce thousands of jobs.
Chairman Ian Meakins praised Fernandez’s “decisive and results-oriented approach” and tasked him with executing the company’s growth plan, stating, “There is much further to go to deliver best-in-class results.” Analysts and investors, including Barclays’ Warren Ackerman and UBS’s Guillaume Delmas, agreed that Fernandez is well-suited to accelerate the value unlock process, although the announcement came as a surprise.
Fernandez, 58, has held various roles at Unilever, including President of Latin America, CEO of Brazil, and President of the Beauty & Wellbeing business, before being promoted to CFO last year. In January, he took on additional responsibilities overseeing supply chain and procurement.
Unilever, known for brands like Hellmann’s, Dove, and Ben & Jerry’s, stated that its 2025 outlook and medium-term forecast remain unchanged, and the board is committed to further accelerating Schumacher’s growth plan. Schumacher, 53, will step down as CEO in March and leave the company on May 31, receiving his fixed pay of 1.85 million euros ($1.94 million) until his departure along with an undisclosed payment for the remainder of his notice period. Meanwhile, Srinivas Phatak, currently Unilever’s deputy chief financial officer and group controller, will serve as acting CFO while a permanent replacement is sought.
