Why has Unilever CEO Hein Schumacher stepped down and who is replacing him?

Hein Schumacher, the CEO of Unilever Plc, is abruptly leaving the company after less than two years leading the consumer goods division. The firm that makes Ben & Jerry's, Marmite, Dove, and Knorr said that Mr Schumacher would step down from his role on March 1 and leave the company on May 31.

The outgoing CEO, who took over the role in July 2023, has recently spearheaded moves to sell off its Wall's and Ben & Jerry's ice cream divisions. Earlier this month, the company announced plans to spin it off with a stock market offering in Amsterdam in addition to other listings in London and New York.

The group did not reveal much about the reason behind Mr Schumacher’s exit. However, it did say Mr Schumacher will leave the role “by mutual agreement”. However, his departure comes as Unilever's stock, which is listed on the FTSE 100, dropped three per cent in early trading on Tuesday. The shares dropped following a set of annual results that were not well received.

It has been reported that due to its poor performance, Unilever has come under growing pressure from shareholders, including activist investor Nelson Peltz. The exit also coincides with a significant turnaround plan that includes 7,500 previously announced job layoffs, steps to reduce the number of brands in its food segment, and an increased emphasis on its top sellers.

Mr Schumacher was named CEO in 2023 following the retirement of Alan Jope. He initially joined the company in October 2022, as a non-executive director after serving as the CEO of Royal FrieslandCampina, a multinational dairy and nutrition company. Fernando Fernandez will take Mr Schumacher’s place. He is currently the company's chief financial officer and previously oversaw its Latin American division and its beauty and wellbeing section, one of its fastest-growing divisions.

Since joining Unilever in 1988, Mr Fernandez has managed some of the top-performing markets for the company. He briefly served as the president of the Latin America division and as the head of the markets in Brazil and the Philippines. According to Ian Meakins, chairman of Unilever, Mr Fernandez has a solid background and “profound knowledge of Unilever's operations”.

Mr 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 growth action plan and in driving the productivity programme. He has a strong track record of performance and portfolio management, a love of brands and a profound knowledge of Unilever’s operations,” he added.