Unilever CEO Hein Schumacher ousted after 18 months, CFO Fernando Fernandez to take over
Unilever surprised investors on Tuesday by abruptly replacing Chief Executive Hein Schumacher with Chief Financial Officer Fernando Fernandez, less than two years into Schumacher’s tenure, Reuters reported.
The unexpected leadership shake-up sent Unilever’s shares down as much as 3.4%, despite having risen over 9% since Schumacher took charge.
The decision followed a board meeting on Monday, where directors concluded that Fernandez, a Unilever veteran of over 30 years, was better suited to implement the company’s strategic vision, a source familiar with the matter told Reuters.
Unilever did not specify the reason for Schumacher’s departure but said he was leaving by mutual agreement.
Strategic reset amid investor pressure
The leadership shift comes at a crucial time for Unilever, which has been under pressure from investors to improve performance.
The move follows the company’s disappointing full-year earnings and broader challenges in the consumer goods sector, including supply chain disruptions, rising commodity costs, and consumers opting for cheaper alternatives amid economic uncertainty.
Schumacher, appointed in July 2023, had been backed by activist investor Nelson Peltz, who joined Unilever’s board after his firm, Trian Fund, built a stake in the company in 2022.
Trian declined to comment on Schumacher’s exit.
Investor and analyst reactions
The sudden change shocked analysts, with RBC Capital’s James Edwardes Jones calling Schumacher’s departure "gobsmacking."
"It must have something to do with his management style. The company needed an outsider, but maybe that wasn’t the view of a significant portion of Unilever’s employees," Jones noted.
Initially praised for being an external hire, Schumacher focused on revitalising Unilever’s strategy, including cost-cutting measures such as separating the ice cream division and reducing thousands of jobs.
However, Chairman Ian Meakins expressed confidence in Fernandez, calling him "decisive and results-oriented," and tasked him with executing the company’s growth strategy.
Schumacher’s exit terms and leadership transition
Schumacher will step down as CEO in March and exit Unilever by May 31. The company confirmed he would be treated as a “good leaver,” receiving his fixed salary of €1.85 million ($1.94 million) until departure, along with an additional undisclosed payout.
Unilever maintains its 2025 outlook and medium-term targets, reaffirming its commitment to accelerating the growth plan Schumacher had initiated.
In the interim, Deputy CFO Srinivas Phatak will serve as acting finance chief while Unilever searches for a permanent CFO replacement.
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