Unilever CEO to exit “by mutual agreement”, dynamic Fernandez steps up

He’s only been in the hotseat for just over two years but Unilever’s CEO is already on the way out. Tuesday saw the consumer products multinational announcing that Fernando Fernandez will succeed Hein Schumacher as of this weekend. Schumacher will finally leave by the end of May “by mutual agreement”.

The company said its board “is committed to further accelerating [its] Growth Action Plan and building Unilever into [a] global industry leader”. It also reaffirmed its 2025 outlook and medium-term guidance.

So what about his replacement? Fernando Fernandez is currently Unilever CFO and executive director and takes over as of 1 March at a fixed salary of €1.8 million before any bonus and performance awards. 

Prior to becoming CFO in January 2024, he “had a successful tenure as president of Beauty & Wellbeing, one of Unilever’s fastest-growing businesses. In previous roles as president Latin America, CEO Brazil and CEO Philippines he led some of the company’s best-performing markets, delivering strong financial results while developing exceptional talent”.

And that statement underlines the possible problem with Schumacher — the company just wasn’t growing fast enough. Like his predecessor Alan Jope, he was expected to put some much-needed zip into the conglomerate’s performance. But while he put some major initiatives in place, he clearly didn’t do enough to satisfy the board (or some big shareholders) of the company that owns a giant beauty business with brands such as Dove and Hourglass.

But Unilever chairman Ian Meakins said: “On behalf of the board, I would like to thank Hein for resetting Unilever’s strategy, for the focus and discipline he has brought to the company and for the solid financial progress delivered during 2024. Hein introduced and led a significant productivity programme and the commencement of the Ice Cream separation, both of which are fully on track. The Growth Action Plan (GAP) has put Unilever on a path to higher performance and the board is committed to accelerating its execution. We are grateful for Hein’s leadership, and we wish him the very best for the future.”

Speaking of the new CEO, Meakins added: “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 GAP 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.

“While the board is pleased with Unilever’s performance in 2024, there is much further to go to deliver best-in-class results. Having worked with Fernando closely over the last 14 months, the board is very confident in his ability to lead a high-performing management team, realise the benefits of the GAP with urgency, and deliver the shareholder value that the company’s potential demands.”

Schumacher meanwhile said he’s proud of what’s been achieved so far and Fernandez said his focus “will be on building a future-fit portfolio with an attractive growth footprint and delivering unmatched functional and perceivable superiority across our top 30 power brands. I have full confidence in our team’s ability to propel Unilever to a global industry-leading position and create substantial value for our shareholders”.

As for his previous role, we’re told that a “thorough internal and external search process is being initiated to appoint a permanent CFO”. From 1 March 2025, Srinivas Phatak, currently Unilever’s deputy CFO and group controller, will become acting CFO. 

Srinivas has served in global and local senior finance, strategy and supply chain roles including a successful term as CFO of Hindustan Unilever Limited. Srinivas’s “leadership qualities and his broad experience will enable him to partner Fernando in successfully executing Unilever’s strategy,” the company said.