Unilever CEO Paul Polman retires, Alan Jope to assume the role

By Thomas Buckley and Eric Pfanner

(Bloomberg) – Unilever named personal-care head Alan Jope to succeed Paul Polman as chief executive officer, choosing a safe pair of hands to guide the consumer-goods giant into the future after a turbulent period.

Jope, 54, is a surprise choice to run the maker of Dove soap and Ben & Jerry’s ice cream, as market speculation had focused on other internal candidates. He takes over after Polman, who is 62, fended off an unwanted takeover bid from Kraft Heinz Co. and backed down on a plan to consolidate the Anglo-Dutch company’s headquarters in Rotterdam.

The Unilever NV logo sits on a a jar of Marmite, manufactured by Unilever NV, in this arranged photograph in London, UK. Photographer: Chris Ratcliffe/Bloomberg

The shares rose as much as 0.6% early Thursday in Amsterdam and are up about 5% for the year.

The appointment of Jope, who’s sought to increase Unilever’s profitability by assembling a division called Prestige through acquisitions of high-end skin-care brands such as Ren and Dermalogica, comes at a time when activist investors and companies like Kraft Heinz are pushing the industry to widen profit margins. Polman, who has run the company for nearly a decade, has been a champion of sustainability initiatives.

Jope brings a digital sensibility to the CEO suite, having pushed the use of new marketing tools to connect with millennial consumers. Last year, he founded a tech hub in New York’s Tribeca neighbourhood to focus on online communications for brands such as Dove and Axe shower gel. Insights gleaned from that team were also used to support new labels such as Love Beauty and Planet, an environmentally friendly personal-care line.

Jope used to run Unilever’s China operations, whose performance under the CEO-in-waiting has received praise from Polman. The executive also has experience in the company’s food arm, giving him knowledge of both of its key business areas. But market speculation had focused on other internal candidates such as Chief Financial Officer Graeme Pitkethly and food and refreshments chief Nitin Paranjpe.

Who did Unilver pass over for the CEO job?

Biggest Unit

The personal-care division was the company’s largest last year, with sales of 20.7bn euros ($23.6bn), almost double the food business and just under half the company’s total revenue. The unit has become a breeding ground for British CEOs, with previous leader Dave Lewis being named head of Tesco Plc in 2014.

Under Polman, Unilever has revamped its portfolio with the acquisition of niche brands such as organic tea maker Pukka Herbs and Sir Kensington’s condiments, racing rival Nestle SA to capitalise on consumer demand for healthier, higher-value products as mainstream brands stagnate.

The decision on the new CEO, which followed a yearlong search, was finalised Wednesday at a board meeting at Unilever’s North America headquarters in New Jersey. The appointment is effective Jan 1. Polman will support the transition in the first half of 2019, the company said.


Unilever media statement

Unilever today announced that CEO Paul Polman has decided to retire from the company. Alan Jope, currently President, Beauty & Personal Care, has been appointed to the position, effective 1 January 2019, with Polman supporting the transition process during the first half of the year.

Paul Polman has been Unilever CEO for over 10 years and has worked in the consumer goods industry for almost four decades. During his tenure, the company has delivered consistent top and bottom line growth ahead of its markets. Its focus on successfully pioneering a new model of sustainable growth has served the needs of its many stakeholders and created excellent returns for its shareholders, delivering a Total Shareholder Return of 290% over that period.Alan Jope, 54, has led Beauty & Personal Care, Unilever’s largest Division, since 2014 and has been on the company’s Leadership Executive since 2011. He has an excellent track record of leading Unilever’s business in both developed and emerging markets, having run the company’s North Asia business for four years, served as President, Russia, Africa & Middle East, and spent over a decade in senior Foods, Home Care and Personal Care roles for Unilever US. Alan joined the company as a graduate marketing trainee in 1985.

Paul Polman Outgoing Unilever CEO
Paul Polman poses for a photograph with a selection of Unilever products at their headquarters in London in this file photo. Photographer: Simon Dawson/Bloomberg

Unilever Chairman Marijn Dekkers said: “Paul is an exceptional business leader who has transformed Unilever, making it one of the best-performing companies in its sector, and one of the most admired businesses in the world. His role in helping to define a new era of responsible capitalism, embodied in the Unilever Sustainable Living Plan, marks him out as one of the most far-sighted business leaders of his generation.

“Paul’s vision, drive and performance focus, combined with his commitment to serving the best long-term interests of the company, have materially strengthened Unilever. He leaves a more agile and resilient company, well placed to win in this fast-changing, dynamic industry. I’d like to thank him personally, and on behalf of the Board, for his contribution to Unilever.

“After a rigorous and wide-ranging selection process, the Board is delighted to appoint Alan to the role. Having worked for Unilever in a variety of senior management roles, Alan has a deep understanding and experience of our business, the industry, and the markets in which we operate. He is a strong, dynamic and values-driven leader with an impressive track record of delivering consistent high-quality performance. The Board warmly welcomes Alan to the role and wishes him every success.”

Paul Polman said: “I congratulate Alan on his appointment and look forward to working with him on the transition. Having worked closely with Alan for many years, I am highly confident that under his leadership, Unilever will prosper long into the future. His appointment demonstrates the strength of Unilever’s succession planning and talent pipeline.

“It has been an honour to lead Unilever over the last 10 years. Throughout this time, I have been humbled by the commitment and hard work of our people, and their passion for creating a truly purpose-driven company. I am very grateful to them, as I am to Unilever’s many other stakeholders, with whom we have worked to build our long-term, sustainable business. I look forward to engaging with many of these partners – in a different capacity – to help address the many environmental and social challenges facing the world.”

Alan Jope said: “It will be a huge privilege to lead Unilever – a truly global company full of talented people, and brilliant brands. Over the 30 years I have worked at Unilever, I have seen the many ways in which our brands improve people’s lives, positively impacting more than 2 billion citizens every day.

“Our global footprint includes strong positions in many important markets for the future and our focus will remain on serving our consumers, and our other multiple stakeholders, to deliver long-term growth and value creation.

“I’d also like to extend my gratitude to Paul for his remarkable leadership of Unilever and look forward to working closely with him during the transition.”

Polman will retire as CEO and as a Board member on 31 December 2018. He will support the transition process in the first half of 2019 and will leave the company in early July.

A successor to the role of President, Beauty & Personal Care will be announced shortly.

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