Siobhan Kennedy and James Rossiter
We've made some changes
to The Sunday Times
Unilever, the Persil and Lipton Tea consumer goods giant, has begun the process of recruiting a replacement for Patrick Cescau, its 59-year-old chief executive, The Times has learnt.
It is understood that members of the board’s nominations committee have begun to sound out a number of internal and external candidates, although a decision on a replacement is not imminent.
Unilever, the Anglo-Dutch group, said that it did not comment on rumours and speculation. However, a source close to the matter said: “It’s the start of a long, long process.” Mr Cescau, a Unilever lifer, was promoted from chief financial officer to chief executive in 2005, replacing Niall FitzGerald. Before that he ran the company’s foods division. The Frenchman is widely credited with turning around the conglomerate’s fortunes and helping to bring the two arms of the business – food and consumer goods – more closely together.
Although its profits have improved, many believe that Unilever is still lagging behind its biggest rivals, Procter & Gamble (P&G) and Colgate-Palmolive, in the lucrative and competitive health-and-beauty market.
Unilever has a long history of recruiting and promoting from within. However, sources said that it was likely the company would look to hire a replacement for Mr Cescau from outside Unilever, following on from the appointment of Michael Treschow, Unilever’s first independent chairman, last year and Jim Lawrence, its chief financial officer, who was also recruited externally.
Last week the company underwent another management reshuffle, with the promotion of Vindi Banga to run the company’s combined home and personal care and foods businesses. At the same time Unilever said that two people on its eight-member executive team, Kees van der Graaf and Ralph Kugler, would retire at the company’s annual meeting in May, leaving, for the first time, no Dutch or British representative on the board. Doug Baillie was appointed to head Unilever’s business in Western Europe and also joined the executive committee.
At the time Numis analysts said: “The more dynamic elements of Unilever’s management are taking control – this is good news for investors looking for more energy from the top team, and that translating into better performance.” Another source said: “They’re really shaking things up this year so I’m not surprised they’ve started to look for his [Mr Cescau’s] replacement. I think they’ll try and find a high-quality person from the outside.”
During his tenure Mr Cescau has sold businesses accounting for more than 6 per cent of turnover as well as changing the company’s governance model. Last August Mr Cescau announced plans to cut 20,000 jobs over four years, an 11 per cent reduction in the workforce, to speed up recovery plans aimed at narrowing the gap with P&G.
His pay package, according to the group’s latest annual report, was nearly €3 million (£2.3 million), including a salary of €1.4 million. When he took over the top job, the company had a sprawling portfolio of brands from Flora margarine and Dove soap to Sunsilk, Cif, Domestos and Persil.
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