Consumer goods giant Unilever Plc is in search of a new board chair to replace Nils Andersen, as the company continues its leadership overhaul following a series of missteps that frustrated shareholders in recent years. A spokesperson revealed that the maker of Hellmann’s mayonnaise and Marmite yeast spread has hired executive search firm Spencer Stuart to lead the quest.
Unilever recently made drastic changes in its top ranks, including the appointment of activist investor Nelson Peltz to the board last year. Hein Schumacher will become the CEO in July 2021, replacing Alan Jope, while Chief Financial Officer Graeme Pitkethly has plans to retire next year. These updates have followed a botched attempt to buy GSK Plc's consumer-health unit more than a year ago.
Andersen has been serving on the board since 2015 and took on the position of chairman in 2019. According to UK corporate governance guidelines, his term would typically end next year. The 64-year-old has taken on the role of chairman of chipmaker ASML Holding NV earlier this year. Given that employees view top-level leadership jobs as stepping stones, it is very likely that Unilever expects Andersen to retire.
Throughout Andersen's term as chairman, the company's total previous to investors has trailed significantly behind that of its rival, Nestle SA. Conny Braams, Board Member and Chief Digital and Commercial Officer, is set to leave her position later this year. However, as Schumacher, former CEO of Dutch dairy cooperative Royal FrieslandCampina, takes up the mantle, more changes in senior leadership are expected.
Last month, shareholders voted against the company's 2022 compensation plan, signaling their exasperation with the non-binding poll. The Unilever board is set to consult with shareholders over the next few months.
Unilever's new leaders will face the challenge of dwindling market share during a crisis where the cost of living leads customers to buy cheaper store brands. Andersen took on the chairman position after Marijn Dekkers resigned following a failed attempt to unify the company's headquarters in the Netherlands. The company subsequently changed its course, abandoning its Anglo-Dutch structure in favor of consolidating its base in London.