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LONDON – After months of turmoil and the arrival of the activist investor Nelson Peltz on the board of directors, Alan Jope plans to step down as chief executive officer of Unilever next year.
The company said Monday that Jope will retire at the end of 2023, after five years in the role. The board said it plans to proceed with a formal search for his successor and will consider both “internal and external” candidates.
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Unilever shares were up 2.8 percent at 41.41 pounds in early morning trading following the announcement.
Chairman Nils Andersen said that since Jope took up the CEO role in 2019, Unilever “has seen improved performance, enabled by its clear strategic choices and a significant company transformation. Alan’s retirement next year will mark the end of a remarkable career with Unilever.
“Under his leadership, Unilever has made critical changes to its strategy, structure and organization that position it strongly for success. This work continues, and we will thank Alan wholeheartedly for his leadership and contribution to our business when he leaves next year,” he added.
Jope said that, following more than 35 years in Unilever, “I believe now is the right time for the board to begin the formal search for my successor. Growth remains our top priority, and in the quarters ahead, I will remain fully focused on disciplined execution of our strategy and leveraging the full benefits of our new organization.”
The announcement of Jope’s departure caps nine months of disruption at the owner of brands including Dove, Vaseline and Ben & Jerry’s. Late last year, Unilever made a botched attempt to purchase GlaxoSmithKline’s Consumer Health business, which is now a public company called Haleon, quoted on the London Stock Exchange.
Unilever’s move – and the price it was willing to pay for the division – irked shareholders, tarnished Jope’s image and saw Unilever’s share price collapse. GSK rejected three bids from Unilever, the final one valued at 50 billion pounds.
As that drama was unfolding, the activist investor Nelson Peltz’s Trian Fund Management made an investment of nearly $2 billion in Unilever, and over the summer Peltz joined the board as a non-executive director.
Financial analysts had been hoping that Peltz would join the board at some point and start working with management, as he did with Procter & Gamble a few years ago.
Following the failed bid, Unilever also shook up its way of working and restructured is management teams in order to become “a simpler, more category-focused business.” It has moved away from its former “matrix structure” and is now organized around five business groups: Beauty & Wellbeing, Personal Care, Home Care, Nutrition and Ice Cream.