Unilever has announced that Hein Schumacher will step down as chief executive officer and board director after less than two years on the job. In mutually agreed upon departure,he will leave the company on May 31.
Fernando Fernandez, currently the London, England-headquartered multinational consumer packaged goods giant’s chief financial officer and executive director, will be appointed chief executive officer effective on March 1. Prior to becoming CFO in January of 2024, he had a successful tenure as president of Beauty & Wellbeing division, one of Unilever’s fastest growing businesses. In previous roles as President Latin America, CEO Brazil and CEO Philippines he led some of the company’s best performing markets, delivering strong financial results while developing talent.
Overall underlying sales for Unilever brands grew 4.2% in 2024, as volume rose 2.9%. Turnover increased 1.9% to €60.8 billion. Food product underlying sales advanced 2.6%, with muted volume growth of 0.2% amidst a market slowdown and moderating prices. Ice Cream sales grew 3.7%, with a return to positive volume growth of 1.6%. This reflected an improved performance in the second half supported by bigger innovations and operational improvements.
“On behalf of the board, I would like to thank Hein 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,” said Chairman Ian Meakins. “He introduced and led a significant productivity program and the commencement of the ice cream separation, both of which are fully on track. The Growth Action Plan (GAP) 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.”
Speaking of Fernandez’s appointment as CEO, Meakins said: “The board has been impressed with Fernando’s decisive and results-oriented approach and his ability to drive change at speed. He partnered in the development of the GAP and in driving the productivity program. He has a strong record of performance and portfolio management, a love of brands and a profound knowledge of Unilever’s operations.”
The chairman added: “While the Board is pleased with Unilever’s performance in 2024, there is much further to go to deliver best-in-class results. Having worked with Fernando closely over the last 14 months, the board is very confident in his ability to lead a high performing management team, realize the benefits of the GAP with urgency, and deliver the shareholder value that the company’s potential demands.”
Ice Cream Separation
The separation of Unilever’s ice cream operation, which includes the Magnum, Cornetto, Ben & Jerry’s and Breyer’s brands is on schedule for completion by the end of 2025. It will take place by way of demerger, through listing of the business in Amsterdam, London and New York, the same three exchanges on which Unilever PLC shares are currently traded. The separated business will be incorporated in the Netherlands and will continue to be headquartered in Amsterdam.
Summary of Remuneration in Respect of Executive Changes
According to a press release posted at the Unilever Global website, incoming CEO Fernandez will receive fixed pay of €1,800,000 and be eligible to participate in an annual bonus and performance share plan awards, all in line with the company’s existing remuneration policy.
Departing CEO Hein will continue to receive his current level of fixed pay (€1,850,000) up to the cessation of his employment on May 31. He will then be eligible for a payment in lieu of the remainder of his notice period. Hein will be treated as a “good leaver” under the Remuneration Policy for purposes of his outstanding incentives.
