Unilever unexpectedly announced the departure of its Chief Executive Hein Schumacher as the company pursues a major turnaround strategy. Schumacher said he would step down by mutual agreement on Saturday, before leaving the company on May 31, to be replaced by current finance chief Fernando Fernandez. The stock fell more than 3% at the market open before recovering a little to stand at 1.7% down. Here is a selection of analysts' comments:

Unilever's CEO Departure Comes as Surprise Given Successful Performance

0755 GMT - Unilever's announcement that CEO Hein Schumacher is to step down after a very successful 18 months in charge is an astonishing surprise, RBC Capital Markets James Edwardes Jones and Wassachon Udomsilpa say in a note. "We met with Hein just over a week ago, and he seemed to us to be very much his normal ebullient self. We certainly didn't see this coming," they say. The departure as a 'good leaver' seems to rule out any undesirable behavior, but it would also be possible that he could have found another job, they say. Given that the recent company's performance wouldn't warrant his dismissal, the final possibility would be a personal issue, they add. (michael.susin@wsj.com)

Unilever CEO's Departure Likely Related to Management Style, RBC Says

0856 GMT - Unilever CEO Hein Schumacher's departure could be related to his style of managing the company, RBC Capital Markets analysts James Edwardes Jones and Wassachon Udomsilpa say after speaking to the company. According to the analysts, the company said the departure wasn't due to personal reasons such as inappropriate behavior or Schumacher having found another CEO job. Schumacher leaving the company is being presented as "business as usual." The board has been thinking about such a change for a while, they write in a note. The analysts say that the decision could either represent a victory for Unilever's insiders or "evidence of the old--and often dysfunctional--Unilever culture reasserting itself." Shares are down 1.7%. (michael.susin@wsj.com)

Unilever's CEO Departure Comes With Signs of Stalling Turnaround, Quilter Cheviot Says

0912 GMT - Unilever's CEO departure after 18 months in the role is never a good thing, especially during a strategy turnaround, Quilter Cheviot head of equity research Chris Beckett says in a note. The consumer-goods company's decision suggests that the plan wasn't going well behind the scenes, Beckett says. Unilever's last earnings season also indicates the turnaround had stalled, with weak guidance and sales growth only likely to improve by passing on higher commodity costs, Beckett adds. However, new CEO Fernando Fernandez is unlikely to make changes in the strategy, and the guidance has been reiterated, Beckett says. "Results will be watched even more closely now to ensure there are no signs of cracks within that turnaround strategy," he adds. Shares are down 1.5%.(michael.susin@wsj.com)

Unilever's CEO Change Suggests Plans to Accelerate Turnaround Pace

0938 GMT - Unilever's CEO departure suggests that the board is seeking to accelerate the pace of change at the company while remaining fully committed to the turnaround strategy, UBS analysts say in a note. "While [Hein] Schumacher was instrumental in building the foundation of the growth action plan, Unilever is entering the new phase of its strategic journey where execution is key," they say. The appointment of current CFO Fernando Fernandez--a well-known executive by the investor community--to replace Schumacher suggests that he is believed to be the best equipped for the role, they add. The analysts highlight that Unilever's stock currently trades at a 13% discount to the European food and personal-care sector. Shares are down 1.5%. (michael.susin@wsj.com)

Unilever's CEO Change Hints at Turnaround Impatience

1014 GMT - Unilever's replacement of its CEO suggest the turnaround plan wasn't progressing as quickly as hoped, AJ Bell investment director Russ Mould says in a note. While the company's performance under Hein Schumacher's leadership hasn't been bad enough to warrant his departure, some clues come from Chair Ian Meakins' comments, Mould says. Meakins said new CEO Fernando Fernandez has the ability to "drive change at speed," and that the board has confidence in him realizing the benefits of a growth plan "with urgency," Mould says. But this could mean the company is overly focused on the short term, he says. "Being too aggressive simply to get the share price moving higher is a dangerous road to travel as mistakes can easily be made," Mould notes. Shares are down 1.8%. (michael.susin@wsj.com)

(END) Dow Jones Newswires

February 25, 2025 05:29 ET (10:29 GMT)

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