LONDON – After less than two years on the job, Hein Schumacher is out as chief executive officer of Unilever, and will be replaced by Fernando Fernandez, currently Unilever’s chief financial officer and executive director.
Unilever said Schumacher was stepping down as CEO and as a board director on March 1, “by mutual agreement,” and will leave the company on May 31. It did not give further details on the reason for his departure.
Fernandez will take up the top job on March 1.
Unilever’s shares were down 2.4 percent to 43.75 pounds at 9:25 a.m. CET on Tuesday.
In a statement, Unilever chairman Ian Meakins thanked Schumacher for “resetting Unilever’s strategy, for the focus and discipline he has brought to the company and for the solid financial progress delivered during 2024.”
He said that Schumacher introduced and led “a significant productivity program and the commencement of the ice cream [division’s] separation, both of which are fully on track.”
Meakins said Unilever’s growth action plan “has put Unilever on a path to higher performance and the board is committed to accelerating its execution. We are grateful for Hein’s leadership, and we wish him the very best for the future.”
He added that while the board was “pleased” with Unilever’s performance, “there is much further to go to deliver best- in-class results.”
Schumacher said it was “a privilege to lead Unilever. We have made real progress and I am proud of what we have achieved in a short period of time. With a clear strategy, a portfolio reset in motion and a strong leadership team in place, I look forward to seeing Unilever move from strength to strength in the future.”
Unilever said there is no change to the company’s 2025 outlook or the company’s medium-term guidance.
Unilever House in London.
Courtesy image
Unilever said Schumacher will continue to receive his current level of fixed pay of 1.85 million euros up to the cessation of his employment in May. He will then be eligible for a payment in lieu of the remainder of his notice period.
The company said he will be treated as a “good leaver” under the remuneration policy for the purposes of his outstanding incentives.
Schumacher is a Dutch national and was formerly CEO of Royal FrieslandCampina, an international dairy and nutrition business. He stepped into the Unilever CEO role in July 2023, replacing Alan Jope, and immediately began reorganizing the company’s structure and priorities to make it more efficient.
The phrase, “We committed to doing fewer things, better and with greater impact,” became Schumacher’s mantra during his short tenure.
On his watch, Unilever decided to separate the ice cream business and, after dragging its heels, finally pulled out of Russia due to the war in Ukraine. His turnaround plan aimed at capturing more market share and boosting profits has begun to bear fruit.
As reported, the ice cream business will be separated by way of a demerger, and the new business will be listed in Amsterdam, London and New York, the same three exchanges on which Unilever shares are currently traded. The demerger is set to take place by the end of 2025.
Earlier this year, Unilever said it is expecting a “soft” start to the new year after reporting a 1.9 percent uptick in turnover to 60.8 billion euros in 2024.
The consumer giant, parent of brands including Dove, Vaseline and Paula’s Choice, reported underlying sales growth of 4.2 percent in the 12-month period, and a 10.8 percent drop in net profit to 6.4 billion euros.
The company said the decline in profit for the year was due to a loss on disposals and higher restructuring costs as a result of accelerating its productivity program.
