Unilever Plc, headquartered in London, United Kingdom, has announced a sudden leadership change, replacing CEO Hein Schumacher with CFO Fernando Fernandez effective March 1, 2025. The decision, made in a board meeting on February 27, signals the company’s dissatisfaction with the pace of Schumacher’s restructuring efforts. This move has unsettled investors, leading to a dip in Unilever’s stock.
In a dramatic leadership shift, Unilever Plc, a global fast-moving consumer goods (FMCG) giant, has replaced CEO Hein Schumacher with CFO Fernando Fernandez. The abrupt decision comes less than two years after Schumacher took over, signaling the board’s impatience with the speed of Unilever’s transformation efforts.
Unilever, known for brands such as Dove, Knorr, Hellmann’s, and Ben & Jerry’s, announced that Fernandez would officially assume the role of CEO on March 1. The company praised Fernandez’s ability to “drive change at speed,” suggesting that Schumacher’s tenure failed to meet expectations.
Investor Reaction and Market Impact
The news sent shockwaves through the stock market, with Unilever’s shares dropping as much as 3.4% on Tuesday. Schumacher, who assumed the role in July 2023, had overseen a stock gain of over 9% before this unexpected shake-up. Investors had initially welcomed his strategy, which included cutting costs, spinning off Unilever’s ice cream business, and shifting focus toward volume growth rather than price hikes.
Why Schumacher Was Pushed Out
Schumacher’s leadership was intended to revitalize Unilever after years of underperformance. He was brought in to replace Alan Jope during a period of declining investor confidence, particularly following activist investor Nelson Peltz’s entry into the boardroom.
Despite his restructuring efforts, Schumacher faced growing pressure from investors who were dissatisfied with Unilever’s slow turnaround. The company’s recent earnings report failed to impress, further fueling speculation that the board would take drastic action.
Who is Fernando Fernandez?
Fernandez, 58, has been with Unilever since 1988, holding multiple key roles, including President of Latin America, CEO of Brazil, and President of Beauty & Wellbeing. He was promoted to CFO in 2023 and is widely regarded as a decisive leader with deep operational expertise.
Chairman Ian Meakins stated that the board was “impressed with Fernandez’s results-oriented approach” and believes he is the right person to accelerate Unilever’s transformation. The company confirmed that its financial outlook for 2025 remains unchanged despite the leadership change.
Schumacher’s Departure Terms
Schumacher will step down as CEO in March but will remain with Unilever until May 31. The company classified him as a “good leaver,” entitling him to his €1.85 million ($1.94 million) fixed pay until his departure. Additionally, he will receive an undisclosed severance package.
Unilever has appointed Srinivas Phatak as the acting CFO while it searches for a permanent replacement.
What’s Next for Unilever?
Fernandez takes over at a critical time as Unilever proceeds with its plan to spin off its ice cream business, listing it primarily in Amsterdam with secondary listings in London and New York. The company also aims to navigate global economic challenges, including rising commodity prices and evolving consumer preferences.
With Unilever pushing for faster reforms, Fernandez’s leadership will be closely watched by investors eager for results.
