French foods group Danone has announced it has removed CEO Emmanuel Faber from both his role as company chairman and CEO following a shareholder shakeup.
Photo: Reuters
This comes following a two-week compromise where executives within the company sought to separate the roles of chairman and CEO, removing Faber from his position as CEO and placing him into his role as non-executive chairman.
Read more: Danone's Faber to step down as CEO amid shareholder shakeup
It was revealed on Sunday that Danone was set to also remove Faber from his role as chairman, to be replaced with Gilles Schnepp with immediate effect.
"The priority of the Board is now to transition towards an improved governance," said incoming chairman Gilles Schlepp.
"This means accelerating the process to recruit a new CEO, while Véronique and Shane continue to lead the business during this period. I look forward to working with the Board to support them in their interim roles, and the wider management team as they accelerate our efforts to create value for all our stakeholders.”
He added: “The Board and I want to thank Emmanuel for his leadership and significant contributions to Danone since 1997, and since 2014 as CEO and then Chairman & CEO and his vision and commitment to One Planet.
"One Health is ahead of the industry and has ensured that Danone is a world leader on sustainability. He leaves Danone with a strong platform from which to accelerate and grow.
"I also want to take this opportunity to thank Danone employees around the world that continue to work to grow and build the business for all consumers, customers and stakeholders.”
Reports state that internal executives were being lined up in order to stand in as CEO until the time when a replacement is appointed.
The shakeup came following poor sales results during the coronavirus pandemic and a company reshuffle that the CEO had overseen, prompting major shareholders such as Artisan Partners and Bluebell Capital to replace him.
Their bottled water and yoghurt brands have performed particularly poorly with the pandemic owing to them being the kind of food products one would consume on the go. With restaurants and bars closed and potential consumers being stuck at home, their market has begun to dry up.
Two weeks ago, the company announced it would be splitting up the roles of chairman and CEO, resulting in Faber being ousted from his role as CEO.
However, shareholders such as Artisan Partners were unhappy with Faber remaining as chairman and looked to remove him from his position entirely and reverse the policies he spearheaded.
They felt it would allow Faber to retain too much power and tie the hands of the next CEO.
Read more: Danone shareholder demands removal of CEO amid shakeup
“The new changes announced at Danone violate the most basic of corporate governance standards,” the company wrote in an open letter to the board.
Another grievance for the shareholders is due to reports of a Faber ally being placed in an important oversight position rather than allowing Schlepp to hold this role.
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