News Danone
Kwartje falls the wrong way for Emmanuel Faber
Emmanuel Faber, CEO of food giant Danone for many years, has been removed from his position with immediate effect. This gave 2 critical shareholders their way. For months they had not agreed with the strategy that the Frenchman had in mind within the group. They saw the sharply lower turnover figures as a reason to finally replace the CEO.
With immediate effect, the board of directors of Danone CEO Emmanuel Faber has shown the door. The reason? Months of dispute with investment funds Artisan Partners and Bluebell Capital, which are reportedly among the largest shareholders with a share of more than 3%, about the strategy of the food group. These 2 critical shareholders seem to have won the battle, after all Faber has to pack his bags.
Reorganization
Last June, Faber presented a new strategy for Danone. The focus in the coming years would be on health, sustainability and diversity. Faber was therefore a strong proponent of corporate social responsibility. In recent years, for example, he has set aside €2 billion for sustainability within the organization. Think, for example, of replacing the packaging.
But that strategy did not have a positive effect for the group last year, including a loss in sales due to the corona crisis. Danone realized last year namely a decrease in turnover of 6,6% to €23,6 billion. The profit was also quite disappointing. Faber already saw the bad figures coming and therefore decided to take measures in November: a reorganization in which 1.500 to 2.000 jobs were at risk. According to the now former CEO, this should result in a saving of €1 billion.
However, the above was insufficient to convince the 2 critical shareholders. They only shouted louder for Faber to disappear from the scene. "The company has been underperforming competitors such as Unilever and Nestlé for years. Danone's turnover is also not growing fast enough, profit margins are too low and returns for investors are also lagging," wrote the company. the shareholders.
The 57-year-old Faber has been the general manager of Danone since 2014 and also chairman of the board of directors since 2017. It has now been decided that Gilles Schnepp will become chairman. The search for a new CEO is still ongoing.
Kimberly Baker
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