Danone's Faber to relinquish CEO role after investor pressure
Reuters
Published Mar 01, 2021 04:09PM ET
Updated Mar 01, 2021 04:50PM ET
PARIS (Reuters) - France's Danone SA (OTC:DANOY) said on Monday its board has voted to separate the chairman and chief executive roles held by Emmanuel Faber, and launch the search for a new CEO following calls from several shareholders to shake up governance.
Faber will remain in the dual position until a new CEO is found and then become nonexecutive chairman.
The world's biggest yoghurt maker is trying to draw a line under growing pressure from investors over the firm's share price and strategy, which had led to unease at the board level too, people familiar with the group have said.
Faber was the person who put forward to the board the proposals to separate the CEO and chairman roles and to start the search for a new CEO, according to a statement from the company.
Now in his seventh year as chief executive, Faber has pursued a strategy centred on diversifying into fast-growing products featuring probiotics, protein and plant-based ingredients to mitigate slower growth in dairy.
In recent months and with speculation around an incursion by activist investors growing, Faber announced a plan to cut 2,000 jobs, trim product ranges and sell some assets, including the group's business in Argentina and the Vega plant-based brand.
But U.S. investor Artisan Partners (NYSE:APAM) Asset Managers Inc, now Danone's third-largest shareholder, recently joined activist BlueBell Capital Partners in urging the firm to find a new CEO and speed up efforts to boost returns.
The board on Monday pledged its support for Faber to continue at the helm in the meantime, but said it fully supported a "local first" overhaul he had championed to give business units around the world more autonomy, a move that had previously divided some executives.
Decisions at the board meeting on Monday evening were all unanimous, the company said.
The CEO search could go quickly, a source familiar with the discussions said, and up to eight names of potential candidates were already circulating among board members.
"It's not something for 2022," the person said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.