Since taking on the role of CEO in the summer of 2023, Schumacher has aggressively pursued a turnaround strategy that involves divesting non-core assets, including the company’s ice cream unit, while shifting the focus back to Unilever’s key ‘power’ brands.
However, corporate finance director at Rollits LLP, Wild, noted that the turnaround progress has not met the expectations of some investors and board members.
In particular, the ice cream demerger has encountered various challenges, with Unilever facing legal action from Ben & Jerry’s and rumors circulating regarding the brand’s founder looking to reacquire the business.
“The removal of Hein Schumacher as Unilever CEO came as a surprise to the market,” he told Food Manufacture.
“It appears to have been instigated by impatience from investors over the speed of turnaround following a fall in profits last year and a modest start to 2025. The reference to Unilever being on a ‘path to higher performance’ but requiring ‘accelerating its execution’ was telling.”
Wild identified activist investor Nelson Peltz as a significant influence in persuading the board to move on from Schumacher.
He added: “Under Schumacher, there was a defined programme to improve productivity and to spin off the ice cream business, but the growth action plan was not proceeding at a fast enough pace for the board.”
With this change, former chief financial officer Fernando Fernandez has taken over as CEO, a shift that Wild indicates has calmed investor concerns for the time being.
“There is confidence that he will speed up the rate of progress,” Wild explained.
Despite this optimism, Wild cautioned that Fernandez faces significant challenges ahead.
“This just goes to show that turning around a huge ship like Unilever takes time, and, despite Fernandez’s impressive track record, this will not be an easy task,” he continued.
“However, the board has faith in him, and he is probably best placed to deliver the necessary growth at the pace required.”
Schumacher officially departed from his position on 1 March, but he will continue to receive compensation until 31 May this year.
